A serious legal turn of events is looming in Brussels concerning Hungary’s EU funds. The recovery of EU funds has been put on the agenda after the Advocate General of the Court of Justice of the European Union questioned the legality of the subsidies released in 2023. If the court votes in favor of the motion, it could set a precedent.
As one of the Advocates General of the Court of Justice of the European Union put it, the EUR 10 billion (approximately HUF 3,900 billion) in EU funds released by the European Commission in December 2023 in favor of Hungary should be withdrawn. This legal motion reignites the rule of law dispute between Brussels and the Hungarian government, which is costing the EU serious money. The final decision is expected to be made by the Court of Justice of the European Union in the coming months.
Photo: Pexels
As a report confirmed by Politico, Advocate General Tamara Ćapeta concluded in her opinion that the Commission had incorrectly applied its own rule of law criteria when it released the previously withheld funds. In Brussels’ view, the funds were originally frozen due to concerns about the independence of the Hungarian judiciary. The European Parliament had previously filed a lawsuit because, in its view, the Commission had decided to release the funds for political reasons, immediately before an EU summit where member states were discussing support for Ukraine and the cooperation of the Hungarian prime minister was needed.
As the Advocate General says so, the Commission did not carry out an adequate and comprehensive assessment of the reforms relating to the independence of the Hungarian Supreme Court and the appointment of members of the Constitutional Court.
In addition, as the Luxembourg body’s statement confirmed, the reasoning and transparency were also inadequate, and the Commission did not provide sufficient explanation for its decision. At the same time, the Advocate General did not share the European Parliament’s assertion that the Commission had abused its powers.
The current proceedings could set a precedent in terms of the Commission’s discretion in assessing compliance with the rule of law, particularly when applying EU rules on common provisions. At a hearing in October 2025, the Commission argued that the dispute is running parallel to another infringement procedure concerning Hungary. In the attached press release published on February 12, 2026, Advocate General Juliane Kokott recommended that the court find that Hungary had violated EU law in several respects by adopting the 2023 law on the protection of national sovereignty. In the Advocate General’s view, the legislation may disproportionately restrict the free movement of services and capital and may violate fundamental rights and data protection rules.
The Hungarian government argues that national sovereignty and security are matters for Member States,
and that countering foreign influence is a legitimate goal. The Commission, however, believes that the provisions of the law go beyond what is necessary and proportionate.
Court of Justice of the European Union, Luxembourg. Photo: Wikimedia Commons
The two cases are legally separate but politically and institutionally related: both concern the limits of the application of EU rule of law mechanisms. The final decisions will be made by the Court of Justice of the European Union, which is not bound by the Advocate General’s opinion but in most cases follows its reasoning. The judgments are expected in the coming months and could have a significant impact on the further development of the financial and legal disputes between Hungary and the EU institutions.
Via Világgazdaság; Featured image: Hungary Today
The post Hungary Faces Potential Repayment of EU Funds Following Legal Challenge appeared first on Hungary Today.
