The European Commission has sharply criticised Hungary for its continued failure to address long-standing rule of law concerns, with Justice Commissioner Michael McGrath stating that there has been “virtually no progress” over the past year.
Speaking in Strasbourg during the presentation of the Commission’s 2025 Rule of Law Report, McGrath expressed disappointment at Hungary’s lack of engagement with the EU’s recommendations.
The report, published annually, assesses the state of judicial independence, anti-corruption efforts, media freedom, and institutional checks and balances across all 27 member states. The 2025 edition devotes considerable attention to Hungary, highlighting multiple areas of concern. These include opaque political financing, the misuse of emergency powers, lack of safeguards around surveillance, undue pressure on civil society, and interference in the judiciary.
One of the few areas in which progress was noted—an increase in judicial salaries—was criticised for not adhering to European norms on remuneration.
“It is deeply disappointing that we’re not in a position to report further progress on the recommendations that have been made last year,” McGrath told reporters at the European Parliament.
Hungary remains at odds with the European Union over the democratic credentials of Prime Minister Viktor Orbán’s government. Orbán, in power since 2010, has repeatedly clashed with the EU institutions, notably over judicial independence, LGBTQ+ rights, and his government’s approach to Ukraine.
Recent Hungarian legislation has further raised alarms, including a proposed law that could prohibit Pride events. While still under discussion in Budapest, the proposal has drawn widespread criticism from fellow member states. The European Court of Justice is also currently examining Hungary’s 2021 anti-LGBTQ+ law, which Brussels argues breaches fundamental EU values.
Tensions between Budapest and Brussels have grown more entrenched since 2022, when the Commission froze access to a substantial portion of Hungary’s allocated EU funds. According to McGrath, “Approximately 18 billion euros of loans and grants are not available to Hungary because of rule of law issues. I wish it were otherwise.” The funds, which include payments under the EU’s Recovery and Resilience Facility, remain suspended pending compliance with judicial and anti-corruption benchmarks.
Hungary’s government has contested the Commission’s position, arguing that EU institutions are politicising legal standards. However, attempts by Orbán’s administration to resolve the impasse—such as establishing an anti-corruption authority and reforming aspects of the judicial system—have been deemed inadequate or superficial by Commission officials and legal experts.
The 2025 report also references the increasing centralisation of media ownership in Hungary, noting a further deterioration in media pluralism. Independent outlets have come under pressure through regulatory actions, exclusion from government advertising revenue, and strategic acquisitions by business figures aligned with the ruling Fidesz party.
Furthermore, the Commission remains concerned about the continued use of emergency powers, which have been in place in some form since the beginning of the COVID-19 pandemic. Critics argue that these powers are used not solely for crisis management, but to bypass parliamentary scrutiny and limit dissent.
Asked whether the Commission would take new measures, McGrath stated, “We stand ready to take further steps, in relation to Hungary, as necessary,” but declined to give details. Possible actions include infringement procedures, withholding additional EU funding, or initiating Article 7 proceedings—a rarely used mechanism that could suspend Hungary’s voting rights in the Council.
Despite the tensions, Hungary continues to participate in EU institutions. However, its growing isolation has led other member states to develop workarounds. In recent months, initiatives on Ukraine, foreign policy, and certain budget matters have proceeded without Budapest’s endorsement.
The rule of law mechanism, first introduced in 2020, was designed to ensure compliance with EU values and provide a transparent annual review. While several member states have received recommendations, Hungary remains the only one facing prolonged financial penalties.
The Commission’s latest assessment will be discussed by EU justice ministers later this month, with several capitals expected to call for a firmer stance. The growing gulf between Hungary and the EU institutions is likely to remain a key challenge for the bloc in the coming legislative cycle.
