Orbán calls repayment ‘absurd’ as EU court opinion questions EUR 10 billion paid to Hungary

The Advocate General of the EU’s top court has said the European Commission made a mistake when it lifted the freeze on EUR 10.2 billion in cohesion funding for Hungary at the end of 2023.

According to Advocate General Tamara Ćapeta, Hungary had not fully met the rule-of-law conditions attached to the release of the money at the time, in particular, reforms related to strengthening judicial independence.

The money has been paid, but the court may still intervene

The EUR 10.2 billion in question is part of Hungary’s cohesion funding, one of the EU’s main development instruments. These funds are typically used to finance infrastructure and regional projects, such as transport, utilities, urban development, energy efficiency upgrades and other public investments.

The money was transferred in December 2023, after the Commission decided to lift the earlier freeze. However, if the court later annuls that decision, it could create a legal situation in which the basis for the payment effectively disappears retroactively, raising the possibility that the funds could be reclaimed.

As reported by the Hungarian outlet Világgazdaság, Orbán Balázs, the Prime Minister’s political director, said the Advocate General’s opinion should not be seen purely as a legal matter but as a political message.

In his view, Hungary has once again become a target because it has “stepped out of the European elite’s script”, and when a member state does not align with the direction expected in Brussels, institutional and legal mechanisms are quickly set in motion.

Orbán Viktor called the idea of repayment “absurd”

The case reached the Court of Justice after the European Parliament filed a lawsuit against the European Commission in 2024. MEPs argue that the Commission concluded too early that Hungary had met the conditions, thereby violating the rules of the EU’s rule-of-law conditionality mechanism.

One of the key points in the Advocate General’s opinion is that once the Commission set specific reforms as prerequisites for releasing the funds, it could not authorise payments until those reforms had entered into force and their implementation could be demonstrated in practice. For this reason, the Advocate General proposes that the court annul the Commission’s 2023 decision.

Orbán Viktor responded to the case after the informal EU summit held in Belgium, answering a question from Politico. The Hungarian Prime Minister said:

“It would be completely absurd if courts demanded the repayment of the ten billion euros.”

Meanwhile, several voices in the European Parliament have stressed that if the court ultimately sides with Parliament, it could put the Commission in an uncomfortable position.

German MEP René Repasi, for example, argued that in such a scenario the Commission would, in principle, have to act and attempt to recover the funds already paid out. If Hungary refused to repay the money, the Commission could seek to settle the issue by withholding or deducting other payments due to Hungary.

Beyond the funding dispute, we have also reported on the EU’s increasingly ambitious plans for Ukraine, and why Brussels may not let Orbán stand in the way.

When could a final ruling be delivered?

Although the Advocate General’s opinion is not legally binding, the Luxembourg court’s judgments often follow this line of reasoning. A final decision is expected before the summer, and while the formal stake is “only” EUR 10.2 billion, the case is ultimately about how strictly the EU enforces its own rule-of-law conditions, and how much room the Commission retains when taking politically sensitive decisions.

Featured image: European Union