MEPs quiz the Council and the Commission on the ongoing Article 7 hearings regarding the state of democracy in Hungary, with a focus on the implications for the EU budget. Opening statements by Mathieu MICHEL, Belgian Secretary of State for Digitalisation, in charge of Administrative Simplification, Privacy and the Belgian Buildings Agency and Didier Reynders, European Commissioner for Justice. This transcription is a result of an automatic process. Please check against delivery.

Brussels

statement

debate

plenary session

EU mechanism on democracy, the rule of law and fundamental rights (T)

EU - Hungary (T)

REYNDERS, Didier (BE, EC)

MICHEL, Mathieu (BE)

Ongoing hearings under Article 7(1) TEU regarding Hungary to strengthen Rule of Law and its budgetary implications: Opening statements by Mathieu MICHEL, Belgian Secretary of State, and Didier REYNDERS, European Commissioner for Justice

https://api.multimedia.europarl.europa.eu/documents/20125/75737906/1712563294700_I255292Chapters%5BSD-EN%5D.srt

SOUNDBITE (French), Mathieu MICHEL, Belgian Secretary of State, Dear Vice President, Commissioner, Members, let me begin by saying that the rule of law is a priority for our presidency and is at the heart of our political activities. I would like to thank the European Parliament for the constant support it gives us on that subject. Protecting the rule of law is essential. It is important when it comes to defending our fundamental values, which are at the heart of the European project.

SOUNDBITE (French), Mathieu MICHEL, Belgian Secretary of State, Boosting the rule of law is even more important at a time when we are facing increasing numbers of internal and external challenges to our common values and on the eve of future enlargements. Now, Article 7(1) TEU is a procedure that currently concerns Hungary. For the purposes of this debate. Now we continue to maintain open and constructive dialogue with Hungary, while maintaining the procedure open, and Council will be holding a new hearing with Hungary during the General Affairs Council of the 25th of June.

SOUNDBITE (French), Mathieu MICHEL, Belgian Secretary of State, Now, with regard to the link between this and the rule of law. The Council has adopted decisions relating to Hungary's revised plan on the RRF recovering resilience facility on the 8th of December 2023, and this related to just over €10 billion, including the Repower EU chapter. As you'll be aware, Hungary has to implement a whole series of key institutional reforms before the Commission can authorize the payments. They also have to respond to several concerns relating to the rule of law and protect the financial interests of the European Union. Until now, Hungary has only received the pre-financing amounts. We note that Hungary has taken legislative measures to implement some of the reforms required, and that's something that we welcome.

SOUNDBITE (French), Mathieu MICHEL, Belgian Secretary of State, When it comes to the general conditionality regime, the Council, on the 15th of December 2022, adopted an implementing decision on measures aiming to protect the European budget against violations of the rule of law in Hungary. Then, on the 13th of December 2023, the Commission presented an update evaluation assessment to the situation in Hungary and proposed no modifications to current measures, which still apply to Hungary. The Council remains determined to act rapidly. Any measures proposed by the Council on this matter, as long as, Hungary fulfills the appropriate conditions.

SOUNDBITE (French), Mathieu MICHEL, Belgian Secretary of State, Now, on the enabling conditions, it's up to the Commission to verify and check respect for these conditions. The Commission decides on how this affects the situation with regard to Hungary. The Council is not involved in this procedure. Let me conclude by saying we welcome the permanent dialogue between the Commission and Hungary. We hope that these exchanges will soon bear fruit and the necessary reforms. The Council will continue constantly to protect the European Union budget and the European Union's financial interests. We recognize the crucial role that the Commission plays there. Thank you very much.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, Thank you very much. President, Secretary of State. Ladies and gentlemen, Members. I want to focus on the issues covered by today's debate. So, the procedure under Article 7 TEU and budgetary procedure.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, The Commission has had the opportunity to explain on different occasions that it shares an important number of the concerns expressed by the European Parliament in its present proposal that trigger this procedure in 2018. The Commission has made clear that whatever position the Council will be taking on the Article 7 procedure, it must ensure a fair handling of the proposal tabled by the Parliament. The Commission always stands ready to participate in hearings and state of play in the Council, and is of the view that the procedure should be maintained as long as the issues that triggered it are not solved.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, As you know, the Commission also addresses the respect of the EU common values in Hungary under various works trends which run in parallel with the Article 7 procedure. As the President of the Commission Von der Leyen during the January plenary session, hungary's access to EU funds, it's also about the fundamental values that bring us together. When this Commission took office, we promised to safeguard the Rule of Law in the Union while treating all Member States equally. This has been a priority for us.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, That is why the Commission has published its annual Rule of Law reports, and we have used all the instruments available to protect the EU values and the EU financial interests. Our goal has always been to push for reforms in the Member States, in all the Member States. The Commission has relied on the recommendations from the Rule of Law report to identify the criteria for Hungary to access EU funding. This has been notably the case under the Recovery and Residence Facility, and regarding the horizontal enabling conditions linked to the respect of the EU Charter of Fundamental Rights.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, In May last year, Hungary passed a new law setting up a justice reform that addresses the relevant recommendations from the 2022 Rule of Law report. This law strengthens judicial independence and limits the possibility of political interference in the judiciary. This was required for Hungary to meet the conditions for accessing the improvements from Cohesion Policy funds. This is what we requested and this is what Hungary delivered after long and intense discussions.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, The decisions taken in this regard relating to the horizontal enabling conditions fall under the responsibility of my colleague, Commissioner Schmit. The Commission has kept the Parliament regularly briefed about this process and stands ready to provide updates at any time. The Commission considers that it acted in full compliance with EU law and will defend is decision of last December concerning access to certain cohesion policy funds, including before the EU Courts.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, Funding is still suspended under the Horizontal enabling conditions linked to the respect of the EU Charter of Fundamental Rights. For concerns relating to LGTBIQ rights, academic freedom and asylum rights. Funding is also blocked under the general regime of conditionality for the protection of the EU budget, notably when it comes to issues linked to the fight against corruption and the transparency of public procurements as well as academic freedom. This instrument is under the responsibility of my colleague, Commissioner Johansson.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, Finally, no regular payments can be made, at this stage, from the Recovery and Resilience Facility, as Hungary still does not meet all the milestones under its recovery plan. These funds will remain blocked until Hungary fulfills all the necessary conditions. Hungary has received some pre-financing on the Repower EU, like any other Member States, as requested by the applicable regulation. This Pre-financing is not subject to any condition for any Member State. As you know, the European Parliament's recent proposal triggering Article 7 procedure against Hungary covers a wide range of issues. Judicial independence is only one of them. Other concerns remain, as I touch upon, including as regards corruption, freedom of expression and the right to equal treatment. But also in I commission.

SOUNDBITE (French), Didier REYNDERS, European Commissioner for Justice, Allow me to conclude by saying that it is particularly important for the Commission that Council maintains, as announced, the Article 7 procedure on its agenda until all of the concerns related to this have been dealt with in a satisfactory way. The Commission is ready, as always, to continue dialogue on all of these points, together with the Hungarian authorities, at a technical as well as a political level to resolve these remaining problems. Thank you very much, and I will listen attentively to you.