The European Union is about to halt funding to Hungary after accusing its leader, Prime Minister Viktor Orbán, of undermining the country’s democracy and running it as an autocrat, further isolating one of the continent’s last remaining Putin supporters.
The Southeast European country of Hungary, which has been ruled by Prime Minister Viktor Orbán since 2010, may have to forego up to 7.5 billion euros in funds from the European Union, which accuses the country’s government of democratic backsliding and corruption.
Lawmakers say Orbán’s history of anti-democratic governance in Hungary, which EU lawmakers said last week could no longer be considered “full democracy”, is worrying enough to exempt the country from the EU’s common budget from 1.2 trillion euros (1.2 trillion US dollars).
On Sunday, the European Commission announced that lawmakers had proposed “budget safeguards” that would severely limit Hungary’s funding under the current EU budgetary rules. If passed, it will be the first time the EU has enacted a 2020 law designed to protect the bloc’s budget from “abuses by EU governments that bend the rule of law”.
But beyond that, it would be the latest attempt to democratize Hungary after years under Orbán, a man who has opposed more aggressive Western sanctions against Russia, has been dubbed Vladimir Putin’s Trojan horse inside the EU, and has taken action that ranges from a ban on the Circulations range from LGBTQ-related content in schools to blocking Muslim immigrants at the border.
European autocrats
The attempt to cut Hungary off from EU funding is democratic Europe’s latest attempt to stem the spread of authoritarianism and democratic erosion across the continent.
The law was implemented in response to criticism that EU budgets were being used to support populist and increasingly authoritarian regimes in parts of Eastern Europe.
In 2015, former EU Commission President Jean-Claude Junckner jokingly welcomed Orbán at an EU summit without a protocol: “Hello dictator!” Junckner said.
The story goes on
But after years of rightward turns by the Hungarian government, what was once a joke is now becoming a growing concern for European leaders.
In his 12 years at the helm of Hungary, Orbán – who was also prime minister between 1998 and 2002 – has seized control of the country’s independent media, unlawfully forced hundreds of judges to resign, changed the country’s electoral law and openly advocated discriminatory rhetoric against the LGBTQ community and immigrants.
Orbán’s behavior – as well as rumors of corruption linked to members of Fidesz, his ruling party – have prompted the EU to consider limiting the bloc’s actual funding of his government.
“It’s about violations of the rule of law that endanger the use and administration of EU funds,” said EU Budget Commissioner Johannes Hahn on the proposed measures. “We cannot conclude that the EU budget is adequately protected.”
The European Commission now has up to three months to decide whether to exclude Hungary from the bloc’s budget. Within that time, Hungary must implement reforms that make its legislative process more transparent and establish an effective system of anti-corruption watchdogs if it is to continue receiving EU funds.
Putin is an insider
In the past 12 years that he has been in power, Orbán has remained closely associated with Putin.
Since returning for his second term as prime minister in 2010, Orbán’s style of government has been remarkably similar to how Putin has ruled Russia for the past two decades. Both governments have used coercion to censor the media, and both leaders have enlisted the support of oligarchs – wealthy industrial leaders at the top echelons of government.
The two leaders have supported each other on numerous occasions. Orbán publicly disapproved of EU sanctions against Russia following the annexation of Crimea in 2014, and last April Putin celebrated Orbán’s victory in Hungary’s recent parliamentary elections.
The Hungarian economy is closely linked to the EU, to which almost 80% of its exports go. It also remains heavily dependent on Russia for its energy consumption, importing 65% of its oil and 80% of its natural gas from Russia, significantly more than other European nations. Keeping Hungary connected to Russian energy has been said to be central to Orbán and Fidesz’s hopes of remaining in power.
Hungary’s dependence on Russian energy – and its willingness to buy even more – is partly why Orbán has publicly opposed EU measures to ban Russian oil imports and plans to sanction Russian gas imports.
Orbán has been a useful ally to Putin since Russia invaded Ukraine earlier this year. The Hungarian leader has been vocal in the EU as Russia-related sanctions were imposed, delaying progress on the EU’s long-awaited Russian oil ban and repeatedly threatening to derail sanctions packages with no sign of stopping anytime soon.
Reacting to the EU’s decision on Sunday, Orbán’s Fidesz party sought to discredit the bloc for blaming Hungary instead of focusing on the continent’s deepening energy crisis, caused in large part by Putin’s willingness to import energy to use as blackmail to lift Western sanctions.
“It is amazing that even in the current crisis, the left-wing majority of the European Parliament is only concerned with attacks on Hungary,” Fidesz said in a statement last week.
“The left in Brussels wants to repeatedly punish Hungary and withhold the funds due to our country.”
This story was originally featured on Fortune.com