The European Commission on Wednesday agreed to the proposal to release 4.2 billion euros (equivalent to 4.8 billion dollars) from frozen budgets to Hungary. This action follows Hungary's efforts to reform its legal and financial system.
Background of Budget Freezing
This budget was frozen due to corruption allegations and financial mismanagement against the previous Hungarian government, led by Viktor Orbán and the Fidesz party. Orbán has been in strong opposition to the European Union regarding claims of undermining the rule of law and democracy in the country, consistently rejecting these allegations.
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Changes in the Hungarian Government
According to the President of the European Commission, Ursula von der Leyen, Hungary has taken significant steps to strengthen the rule of law and protect the financial interests of the European Union after the election of Péter Márki-Zay as Prime Minister. These reforms include improving public procurement systems, an anti-corruption framework, and reducing conflicts of interest risks.
The European Commission has stated that these reforms should lead to the release of part of the budgets and allow Hungary to participate again in European exchange and research programs. In May, the Commission announced that it was ready to release an additional 16.4 billion euros if all proposed reforms were implemented.
Next Steps and Its Impact on Hungary
Now, EU member states must approve the Commission's plan. This action could have positive effects on Hungary's economy and help the country recover from financial crises caused by the freezing of budgets.
Hungary is heavily dependent on EU budgets, and the release of these funds could help improve economic and social conditions in the country. However, the new government must continuously work on reforms to ensure that these funds are used correctly and transparently.
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