Hungary Faces Challenges as It Prepares to Lead EU Council Presidency

Hungary is set to assume the rotating presidency of the Council of the European Union in the second half of 2024, but the country faces significant challenges in guiding the upcoming rotation. The European Parliament has adopted a resolution expressing serious concerns about the state of democracy in Hungary, highlighting deficiencies related to the justice system, anti-corruption measures, media freedom, fundamental rights, and compliance with EU laws.

The resolution specifically condemns Hungary's adoption of the Protection of National Sovereignty Act and the establishment of the Sovereignty Protection Office, which the Parliament says breaches democratic standards and EU laws. MEPs also deplore the European Commission's decision to release up to €10.2 billion in frozen EU funds for Hungary, despite ongoing concerns about the rule of law and the independence of the judiciary.

Why this matters: Hungary's upcoming EU Council presidency comes at a critical time when the new European Commission is being formed. The European Parliament's resolution raises questions about Hungary's ability to credibly lead the Council given the concerns about the country's adherence to EU values and laws.

Hungarian State Secretary Zoltán Kovács has outlined the government's priorities for the presidency, emphasizing the aim to engage in discourse about Europe's competitiveness through a conservative, Christian Democratic, and pragmatic approach. Despite facing legal proceedings regarding the rule of law, Kovács sees the presidency as an opportunity to reshape the EU and reflect Hungary's perspectives more prominently.

However, the EU's enlargement process has become a strategic question, with the accession of Ukraine, Moldova, and Georgia driven by security concerns rather than just legal reforms and economic compatibility. Disclosed EU calculations suggest that the accession of all candidate countries would cost the EU budget at least €256 billion, with over 72% of that going to Ukraine alone. This would result in cuts to agricultural subsidies for current member states and the loss of cohesion funds for several countries.

The Parliament reiterates the need to determine whether Hungary has committed "serious and persistent breaches of EU values" under the more direct procedure of Article 7(2) and calls for a comprehensive mechanism to protect EU values. The resolution also criticizes the Hungarian government's judicial reforms, citing a lack of independence and political interference in the prosecution services.

As Hungary prepares for its EU Council presidency, the country faces the challenge of balancing its own priorities and perspectives with the concerns raised by the European Parliament about the rule of law and democratic standards. The resolution adopted by the Parliament highlights the ongoing tensions between Hungary and EU institutions, which could impact Hungary's ability to effectively lead the Council during its presidency.

Key Takeaways

• Hungary to assume EU Council presidency in 2024, faces challenges over rule of law.
• EU Parliament resolution expresses concerns about democracy, justice system, media in Hungary.
• Hungary's presidency comes as new EU Commission forms, raising questions about its credibility.
• EU enlargement to Ukraine, Moldova, Georgia poses budget challenges for current members.
• Tensions between Hungary and EU institutions could impact its effective Council leadership.