Hungary risks returning 10 billion euros to the EU. The CJEU analyzes the legality of the unblocking of the funds
The Court of Justice of the European Union (CJEU) is examining a referral from the European Parliament that accuses the European Commission of breaking its own rules when it unlocked, in December 2023, about 10 billion euros for Hungary, funds previously suspended due to problems related to the rule of law.
Hungary could be forced to return 10 billion euros to the European Commission PHOTO: Profimedia
The European Parliament's referral claims that the Commission's decision was one of political opportunism, taken right before an essential summit of EU leaders, at a time when the EU bloc needed Hungarian Prime Minister Viktor Orbán's cooperation in providing aid to Ukraine.
The case is being analyzed by the CJEU, and the final decision is expected in the coming months. An important role will be played by the legal opinion of General Advocate Tamara Ćapeta, who recommends canceling the Commission's decision to unblock the funds. Advocates-general are not judges, but legal advisers who assist the Court in complex or unprecedented cases, and their opinions carry significant weight in deliberations.
What would happen if the decision is overturned?
René Repasi, German MEP and professor of European law at the Erasmus University in Rotterdam and the University of Geneva, explained the consequences of a possible annulment of the Commission's decision.
“If Hungary does not return them, the Commission may reduce other payments that Hungary is entitled to by the amount it must repay”said Repasi, according to Politico.
According to him, the CJEU verdict will set an important precedent regarding the discretionary limits of the European Commission when assessing violations of the rule of law by member states. The stake is all the greater as the case is related to the application of the Common Provisions Regulation (CPR), which conditions the granting of European funds on the respect of fundamental rights and the independence of the judiciary.
Position of the European Commission
The European Commission defended its decision at a hearing held in October 2025. The EU executive argued that Budapest had formally met certain “technical stages” pre-established on the independence of the judiciary and that, under these conditions, the Commission was obliged to unblock the funds.
In contrast, European Parliament lawyers say the Commission's assessment was too narrow and should have taken into account a wider picture of systemic deficiencies related to the rule of law in Hungary.
Harsh reactions from the European Parliament
German MEP Daniel Freund, a member of the Green group, believes that the advocate general's opinion represents a strong signal against the Commission's decision.
“It represents a harsh criticism of the Commission. If the Court follows this logic in the final decision, it will be a victory for the rule of law in EuropeFreund stated.
He added that the legal opinion “confirms what the European Parliament has been signaling for a long time: unlocking the 10 billion euros for the Hungarian government it was illegal and politically motivated. With this decision, the Commission put its own credibility at stake”.
“EU funds should only be granted when the beneficiary respects the law, European values and the rule of law. We expect the European Commission to respect these principles in the future and not allow itself to be manipulated by autocrats like Viktor Orbán.”concluded Daniel Freund.
