BUDG-CONT Debate on budgetary Rule of Law instruments & Hungary's funds
On 26 January 2026 the Members of Committees on Budgets and Budgetary Control will hold an exchange of views on the Commission's approval of Hungary's transfer of part of its frozen funds in the context of the cohesion policy mid-term review and on the different rule of law instruments with Roxana Mînzatu, EVP for Social Rights and Skills, Quality Jobs and Preparedness; Raffaele Fitto, EVP for Cohesion and Reforms; and Piotr Serafin, Commissioner for Budget, Anti-Fraud and Public Administration.
On 28-29 March 2025, Hungary requested to transfer EUR 545 million from two cohesion programmes to new priorities under the Strategic Technologies for Europe Platform (STEP). Of this, EUR 395 million come from frozen funds due to Hungary's failure to meet the horizontal enabling condition under the Charter of Fundamental Rights. While on 25 September, the Commission approved these amendments, it blocked the reimbursements for the new STEP priorities, citing Hungary's non-compliance with Charter requirements on academic freedom.
BUDG and CONT Members voiced concern over rule-of-law backsliding, insisting that frozen funds should not be subject to programme amendment during the mid-term review.
On 10 October 2025, the Commission replied in writing on the amendments and agreed to exchange on the scrutiny of the rule of law conditionality regulation and its interplay with other instruments with focus on the Hungary's frozen funds.