The European Union is ensnared in legal and diplomatic disputes, highlighted by a clash with Hungary over fund allocations and a tense exchange with the United States over political affiliations. The European Parliament has initiated a lawsuit against the European Commission for releasing €10bn of frozen funds to Hungary, a move interpreted as an effort to coax Prime Minister Viktor Orban into supporting a decision on Ukraine. This development follows Orban’s agreement to lift his veto on aid to Ukraine, an act that has raised questions about the adherence to rule of law commitments in exchange for financial benefits. The lawsuit seeks to challenge the Commission’s discretion in releasing funds and to establish clarity over the handling of EU resources.

Parallel to the EU’s internal conflict, relations between Hungary and the United States have deteriorated. President Joe Biden’s critique of Orban’s meeting with former President Donald Trump and subsequent remarks on Orban’s democratic stance have led to Hungary summoning the US ambassador in Budapest. Hungary’s Foreign Minister, Péter Szijjártó, has labeled Biden’s comments as a “serious insult,” highlighting the ideological rifts and the broader concern over Hungary’s affiliations with Russia and China.

This escalating situation places additional pressure on European Commission President Ursula von der Leyen, amidst her reelection bid, amplifying the debates on democracy, rule of law, and international relations within and beyond the EU borders. The EU Parliament’s legal action, coupled with the US-Hungary diplomatic row, underscores the complexities of managing transnational alliances and internal governance standards.