The EU institutions  considere the transparency and quality of the Hungarian legislative a source of concern. In its 2021 Rule of Law report, the European Commission highlighted the worsening situation in the country. It noted, among other issues, that the risk to media pluralism, and the pressure faced by civil society organisations critical of the government.

On 18 September 2022 the Commission proposed to freeze €7.5 billion in EU funds for Hungary, citing corruption and public procurement concerns, after triggering the EU’s rule of law conditionality mechanism against Hungary in April.

Hungary has presented 17 remedial measures, such as creating an anti-corruption task force and changes to its public procurement rules, to address the concerns. The Commission has called the measures a “step in the right direction” and given Hungary until 19 November to demonstrate considerable progress in implementing these measures. The Commission will then re-assess the situation, ahead of the expected Council decision to apply the rule of law conditionality mechanism in Hungary.

On 4 October, Members of the European Parliament  warned the Commission not to fall short of protecting the EU’s financial interests in Hungary.