EU ministers have reviewed reforms introduced by Prime Minister Péter Magyar’s administration but left the Article 7 proceedings against Hungary unresolved. The European Commission has acknowledged significant progress while warning that further changes are required to restore the rule of law.
The European Union has maintained its Article 7 proceedings against Hungary despite acknowledging significant improvements in the country’s rule-of-law situation since Prime Minister Péter Magyar’s government took office earlier this year.
Ministers meeting at the General Affairs Council in Luxembourg on Tuesday, 13 October, reviewed reforms introduced by the Hungarian administration and received an updated assessment from the European Commission.
The proceedings, initiated by the European Parliament in September 2018, remain open eight years after concerns over judicial independence, corruption, media freedom and democratic accountability first prompted action under the EU treaties.
No decision was announced to terminate the procedure following the latest meeting.
Brussels acknowledges progress
European Commissioner Michael McGrath said ahead of the discussions that Hungary had made substantial progress towards addressing the institutional problems inherited from the administration of former prime minister Viktor Orbán.
Speaking in Luxembourg, McGrath acknowledged improved cooperation between the Hungarian government and European institutions.
However, he also indicated that the reform process remained incomplete, noting that the new administration had been in office for only several months.
The Commission’s assessment reflects the changing relationship between Budapest and Brussels following Magyar’s election victory and the subsequent introduction of reforms intended to restore judicial and institutional independence.
As EU Today reported in June, the change of government created an opportunity to resolve long-standing disputes over the condition of Hungary’s democratic institutions and the suspension of European funding.
The latest Council discussions indicate that the EU is prepared to recognise reforms already undertaken without automatically treating them as sufficient to close the Article 7 procedure.
An eight-year institutional dispute
The European Parliament initiated the proceedings in 2018 after raising concerns over developments affecting Hungary’s constitutional system, judicial independence, corruption safeguards and civil society.
Article 7 of the Treaty on European Union provides mechanisms for responding when a member state is considered at risk of seriously breaching the Union’s fundamental values.
Under its preventive provisions, the Council can determine whether there is a clear risk of such a breach.
More severe measures, including the possible suspension of certain membership rights, require additional procedures and higher institutional thresholds.
Hungary’s case has remained within the preventive stage, with successive Council meetings examining the country’s legal and political developments.
The Council’s account of the 13 October meeting confirms that Hungarian representatives presented measures intended to address concerns raised by the European Parliament and member states during earlier proceedings.
The Commission also briefed ministers on its latest assessment.
The meeting did not produce a formal finding that the outstanding concerns had been fully resolved.
Magyar faces the consequences of Orbán’s legacy
Since assuming office, Magyar has sought to reverse elements of the institutional structure established during Orbán’s lengthy premiership.
The reforms have included measures concerning public administration, judicial accountability and the relationship between national institutions and European law.
The new government has also attempted to improve relations with Brussels after years of disputes that affected EU budget decisions, sanctions policy and cooperation over Ukraine.
EU Today has previously examined Magyar’s programme of institutional renewal and the political difficulties involved in changing institutions shaped by the previous administration.
Reforming legislation does not necessarily transform the institutions responsible for applying it.
Judicial appointments, regulatory structures, public procurement procedures and anti-corruption enforcement may all require additional measures before the effects of reform can be fully assessed.
The European Commission must therefore consider not only the laws adopted by the new government but also whether the institutions concerned operate independently and effectively.
EU funding remains a separate question
The Article 7 proceedings are closely associated with wider disputes over Hungary’s access to European funding, although the relevant legal mechanisms are different.
During Orbán’s administration, the Commission and Council used financial conditionality procedures to restrict access to certain EU resources because of concerns affecting the protection of the Union’s budget.
Magyar’s reforms have opened the possibility of reversing some of those restrictions.
As EU Today reported in September, the Commission moved towards releasing €4.2 billion following changes intended to address rule-of-law concerns.
The financial decisions involve compliance with conditions attached to EU funding and can proceed independently of the Article 7 mechanism.
Consequently, the release of money does not automatically establish that all the institutional problems identified in the original parliamentary proceedings have been resolved.
Likewise, the continuation of Article 7 does not necessarily prevent the Commission from recognising progress under separate funding arrangements.
Who can end the proceedings?
McGrath addressed the possibility of terminating the procedure during remarks before Tuesday’s meeting.
He explained that the Commission could provide its assessment but did not have unilateral authority to bring the Article 7 process to an end.
In his recorded statement in Luxembourg, the Commissioner pointed to the responsibilities of the European Parliament, which initiated the case, and the Council, which has conducted the subsequent examination.
The institutional arrangements mean that improved relations between the Commission and the Hungarian government cannot by themselves dispose of the proceedings.
The Council must consider the reforms and the remaining concerns within the framework established by the treaties.
Political agreement among member states will consequently be required to determine how the process develops.
A changed relationship with Brussels
The latest discussions take place against a substantially different political background from previous years.
Budapest has recently withdrawn objections to further steps in Ukraine’s EU accession negotiations following Ukrainian legislation addressing educational rights for Hungarian speakers and other national minorities.
The change has removed one obstacle to enlargement negotiations and reflects the government’s more cooperative approach towards other EU institutions.
Nevertheless, Hungary’s position on foreign policy and enlargement is distinct from the assessment of its domestic rule-of-law arrangements.
The Council’s examination remains focused on the institutional concerns that led to the procedure being initiated.
The Irish presidency’s summary of the October Council meeting confirms that ministers received an update rather than reaching a new formal determination.
The proceedings therefore remain open while the Commission and member states continue examining the measures introduced by Magyar’s administration.
The coming decisions will establish how European institutions respond when a new government undertakes reforms intended to reverse the conduct that originally led to action under Article 7.
For Hungary, the outcome will influence its relationship with Brussels well beyond the immediate debate over EU funding. For the Union, it will demonstrate how its rule-of-law procedures operate when political circumstances change and the member state concerned begins addressing previously identified institutional problems.
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