Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

Hungary government submits first anti-graft bill to avoid losing EU funds

Published Sep 19, 2022 03:21PM ET Updated Sep 19, 2022 03:31PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: Prime Minister of Hungary Viktor Orban waves at the audience during general session at the Conservative Political Action Conference (CPAC) in Dallas, Texas, U.S., August 4, 2022. REUTERS/Go Nakamura/
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio

By Krisztina Than

BUDAPEST (Reuters) -Hungary's government has submitted the first of several anti-corruption bills to parliament on Monday as Budapest scrambles to avoid losing billions of euros in European Union funding.

The European Union executive recommended on Sunday suspending funds worth 7.5 billion euros ($7.48 billion) for what it sees as Hungary's failure to combat corruption and uphold the rule of law.

The European Commission also set out requirements for Hungary to keep access to the funding, including new legislation, which Hungary said it would meet.

Justice Minister Judit Varga said on her Facebook (NASDAQ:META) page that she had submitted the first bill to parliament as the government "will focus on drafting and implementing the commitments (to the EU) in coming weeks and months."

"Hungary could enter the year 2023 without losing any EU funds," Varga said.

The bill modifies legislation relating to Hungary's cooperation with the EU anti-fraud office OLAF, ensuring that OLAF gets support from Hungarian tax authority officials in its investigations of EU-funded projects and gets access to data and documents on the scene.

In addition, it changes rules governing state asset management foundations, obliging them explicitly to issue public procurement tenders for projects and tightening conflict of interest rules in their management.

Hungary's case is the first in the EU under a new sanction meant to better protect the rule of law and combat corruption in the 27-nation bloc.

Nationalist Prime Minister Viktor Orban, in power since 2010, has clashed with Brussels repeatedly over his policies that it sees as eroding democracy in Hungary.

However, with big challenges over rising energy costs and double-digit inflation, a weak forint and a slowing economy, the veteran prime minister looks willing to fulfil EU demands to finally create institutions that would cut corruption risks in EU-funded projects.

"The latest developments in Brussels certainly come at a bad time for Orban, who is struggling with a swath of political and economic problems brought about by both global issues, most notably rising energy prices, so he is likely to go further to satisfy Brussels' demands," said Mujtaba Rahman, Managing Director Europe at Eurasia Group.

He said Budapest would likely secure the pending deal but that would not resolve all the outstanding disagreements over other chunks of EU funds.

"The bigger problem for Orban is the money tied up in the Recovery Fund, because the Commission has more discretion over whether it gives that the green light or not," Rahman said.

Like most EU countries, Hungary last year submitted its blueprint on how it would use EU grants to make its economy more environmentally friendly and high-tech after the COVID-19 pandemic. It has yet to receive approval on that as well.

If Budapest does not get the EU funds, the forint - which has lost 8% this year - will almost certainly fall further, complicating efforts to curb inflation and exposing Hungarian assets to any negative shift in global sentiment.

Development Minister Tibor Navracsics, in charge of negotiations with the EU, said on Sunday that Hungary would meet all 17 of its commitments made to the commission to stave off the loss of any funding.

($1 = 1.0025 euros)

Hungary government submits first anti-graft bill to avoid losing EU funds

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your profile, will be public on and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email