The European Parliament initiated the first phase of the Article 7 procedure—familiarly referred to as the “nuclear option”—against Hungary back in 2018, citing concerns about potential “serious breaches” of the EU’s core values and fundamental rights. This process, which could result in Hungary losing its voting rights within the bloc, has since stalled due to political disagreements among member states.
In 2022, the European Commission took a firmer stance against rule violators by exercising previously unused powers to withhold EU funds. It moved to freeze approximately €22 billion in cohesion funding allocated to Hungary over issues related to human rights and concerns about the judiciary’s independence.
However, the Commission later released over €10 billion of the funds last year, a decision that drew criticism from lawmakers. Now, Hungary faces a critical December 31 deadline, after which it risks permanently losing about €1 billion in EU funding if necessary steps aren’t taken.
“The Commission has demonstrated its resolve to act when appropriate, and various measures have already been implemented,” emphasized EU Commissioner Michael McGrath, who recently took office. McGrath mentioned he had a “productive meeting” with János Bóka, Hungary’s minister for European affairs.
While addressing concerns about his approach, McGrath clarified, “I will not be aggressive or bombastic in any way, but that should not be mistaken for weakness.” This comment came in response to criticism from Terry Reintke, co-leader of the Greens in the European Parliament, who suggested McGrath might be “too Irish” for the role.
Taking the remark in stride, McGrath described it as more of a “compliment” than a critique.
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