A leading advisor to the EU Court has recommended that the EU Commission rescind its 2023 decision to release funds previously frozen from Hungary. General Advocate Tamara Capeta's opinion is significant as it can influence the court's eventual ruling, which is expected in the coming months. This issue was brought to the forefront in 2024 when the European Parliament took the Commission to court over the release of over 100 billion kronor, held back due to serious concerns regarding Hungary's commitment to combating corruption and maintaining an independent judiciary.

In late 2023, the EU Commission had granted approval for the disbursement of these funds, citing reforms that were purportedly implemented by the Hungarian government. However, critics argue that this approval was more about incentivizing Hungarian Prime Minister Viktor Orbán to support additional aid for Ukraine rather than addressing long-standing issues related to governance and rule of law in Hungary. The ongoing back-and-forth regarding these funds highlights the contentious relationship between Hungary and the EU, particularly under Orbán's leadership, which has been characterized by growing authoritarianism and centralized control.

As the situation develops, the implications for Hungary and its financial relationship with the EU remain significant. A retraction of these funds could exacerbate tensions between Hungary and EU institutions, further complicating Hungary's already fragile economic situation. Moreover, it raises questions about the EU's approach to member states struggling with democratic backsliding and the extent to which economic levers can be used to enforce compliance with EU standards on governance and human rights.