EU Takes Back €1 Billion From Hungary.

Last week, the EU stripped € 1.04 billion in aid from Hungary. The EU and Hungary have been at loggerheads over development money for several years. According to a report in Radio Free Europe, The EU believed that the Hungarian government had violated EU public procurement rules. This type of aid is critical for Hungary as the traditional economy as manufacturing has declined; the Orban government has relied on these payments to prop up the economy as well as to use for infrastructure such as football grounds or repaving roads (I can attest to the fact that they are very smooth). It will be fascinating to see how this plays out; Hungary needs the money, but unless Orban changes his leadership style (which is unlikely), I don’t see the EU changing its mind.

Former European Investment Bank Head Facing Corruption Allegations.

Today, prosecutors for the European Union (EU) looking into financial crimes are investigating the former head of the European Investment Bank (EIB), Werner Hoyer. According to a report in Politico, the European Public Prosecutors Office (EPPO) is investigating Hoyer and another individual for allegations that they misappropriated EU funds and abused their power in office—police in Germany and Luxembourg, where the EIB have been working jointly on the investigation. According to a report in Euronews, the EIB has 250 billion Euros in capital that funds climate change projects and the future reconstruction of Ukraine. It is unclear what Hoyer’s future is, but the former head of the investment bank that serves the EU is never a good look.

The European Union takes a Rightward Turn.

Yesterday, the elections for the Parliament of the European Union took place. According to a report in BBC, the right wing in Germany, Italy, and the Netherlands all made solid gains and will be able to have more of a say in dictating EU policy going forward. Briefly, the way that the EU parliament is that individual parties within a country form blocs within the parliament; for example, the Eurosceptic Alternative for Deutschland party in Germany (AFD) is part of the Identity and Democracy Party bloc (ID) within the EU. Some of the shocking news of the evening came out of France. According to a report in the Washington Post, the President of France, Emmanuel Macron, called a snap legislative election due to the gains made by the far-right National Rally (RN). My fear with elections is that these far-right will undermine European democracy and stop the flow of aid to Ukraine, as it is well known that some of these parties have close ties to Russia.

Bulgaria and its connections with Russia & Corruption.

Bulgaria has a long and fraught history as a country where corruption has thrived for many years. According to an article in Forbes, Bulgaria is one of the only members of the EU that has not imposed sanctions on the Russian Federation as a state and on Russian individuals. Even Hungary, led by Viktor Orban, has imposed sanctions on Russia. Bulgaria’s lack of movement on sanctions is mainly because the government has close links to Russia at a governmental level and with the oligarchs. According to a report by the European Council on Foreign Relations, one of the main reasons for such a high level of influence is because of an attempted political coup by Russia in 2016. While the coup failed, like it did in Montenegro, it showed that Bulgarian society faces a massive challenge in eradicating Russian influence.

The EU Aims to Enhance their Anti-Corruption Protocols.

Yesterday, the European Union announced new measures to combat Anti-Corruption. This comes after a recent scandal involving allegations of influence peddling between members of the European Parliament and Qatari government officials. According to a report in The Guardian, the EU executive body plans to criminalize abuse of office, illicit enrichment, and obstruction of justice in cases of misconduct. One of the primary aims of this proposal would be to make it easier for police forces to work together in solving cases across the EU involving transnational criminal groups. This is just a proposal, and despite its importance, it may never come to fruition due to internal European politics.

Ukraine Appoints a New Anti-Corruption Czar.

Last week, the Ukrainian government appointed Semen Kryvonos as the new National Anti-Corruption Bureau of Ukraine (NABU) director. According to a Reuters article, Ukrainian prime minister Denys Shmyhal stated that this appointment would satisfy one of the requirements allowing Ukraine to be accepted into the European Union. They must commit to tackling the widespread corruption that has plagued the country for years to gain entry. Despite Kryvonos’ appointment, questions about his suitability for this role have been asked. According to an article published by euromaidanpress.com, the Anti-Corruption Action Center, an activist group in Ukraine, worries that Kryvonos’s previous experience in Ukraine’s urban planning department isn’t sufficient experience for tackling endemic graft. This is a step in the right direction, but Ukraine will have to do more if it is genuinely serious about combating malfeasance and obtaining entry into the EU.

The Ongoing Influence-Peddling Scandal Between the EU and Qatar.

On December 13th of last year, a major scandal erupted in Brussels, the home of the European Parliament, involving an ever-growing list of high-profile figures within the EU. The central person in the case is Eva Kalli, a Greek Member of the European Parliament (MEP), who also served as the European Parliament’s vice president. According to the BBC, investigators in Brussels found a suitcase that contained €1.5 million. €140,000 was found in Ms. Kalli’s flat, so it became apparent that she had at least some role in a possibly corrupt scheme. The allegations are centered around Qatari officials paying bribes to Kalli and other MEPs so as to influence policy favorable to Qatari interests within the EU. According to a report in The Guardian, an MEP from Cyprus stated that Kalli had encouraged him to water down a forthcoming report critical of human rights in Qatar.

As a result of this Investigation, a proposed vote on whether or not Qataris should be allowed visa-free travel into the EU was suspended. Kalli traveled to Qatar, as per The Washington Post, and described the country as a “front runner in labor rights” despite numerous examples of reports to the contrary. According to The Irish Times, there are reports of MEPs accepting lavish hospitality packages to matches at the recently completed world cup. On December 19th of last year, Qatar threatened to cut off European gas supplies due to the ongoing probe. This could cause even more energy insecurity for European leaders already worried about a lack of natural gas due to the war in Ukraine. This is an ongoing investigation that is likely to expand and possibly ensnare other high-ranking officials.

EU Gravy Train to be Halted in Budapest.

Recently, the European Union has threatened to cut off funds from its state budget to Hungary. Reportedly, the EU could withhold up to 7.5 billion Euros from the Hungarian government. If the EU does indeed take action, this could deliver a severe blow to an already struggling economy. According to the EU, this is being considered because the Hungarian government led by Viktor Orban has diverted EU funds to friendly oligarchs. Hungary is also accused of having inadequate anti-corruption laws. In response to this, the Hungarian government has stated that it will enact new anti-corruption legislation shortly.

It is widely acknowledged that Orban and his cronies engage in corrupt practices. Orban, like many other populist leaders, uses sport as a tool to shape their political vision, mainly to increase his domestic popularity and a way to boost his ego. This has involved the use of government money to support football clubs. For example, according to an article by Tomasz Mortimer in The Guardian, the Orban government spent around 2 billion Euros on stadium construction and youth academies’ development. Orban has also authorized 100 million Euros to Puskas Akademia FC in his hometown of Felcsut. Orban has subsidized clubs owned by his oligarch friends, which has raised concerns about how the government is spending money. Using government funds to construct football stadiums instead of investing money into healthcare or education is misguided.