Why the EU single market hasn’t yet gained enough love from Brussels

good morning. Today, the man who proposed a plan to amend the EU’s single market tells his colleagues that Brussels is not ambitious enough for its bailout. And Laura reveals the Cross-European Parliament proposal of the European Parliament to cut off all EU funds to Hungary.

To Letter

EU policymakers should focus on fixing the bloc’s internal market rather than spending energy on tariffs and defense projects, Enrico Letta told Alice Hancock and Barbara Mones.

Context: Last year, the former Italian Prime Minister prepared a report on the condition of the Bullock’s internal market 30 years ago. This highlighted the region that diagnosed the gap and highlighted the EU’s focus to deepen integration.

The European Commission today announces a new strategy for the single market, led by Letta’s ideas. According to the draft seen by the FT, actions such as simplifying compliance for small and medium-sized businesses, harmonizing waste disposal, and joint rules for sending people to work in other EU countries are listed.

However, Leta said that this is “positive,” but the “first priority” is for the Commission to present more binding rules to its member states. This means tableizing regulations. This means that the Member States must copy and paste into the rulebook, not the directive, not the directive that can be implemented as you choose.

“We’ve come in a moment in history where instructions are like cavalry horses against tanks,” said Letta.

Letta warned that policymakers should focus on strengthening the EU’s internal markets rather than putting all energy on the tariff retaliation list with the US or a new defense initiative. “Progress doesn’t come “depending on inertia,” he said.

The “crazy Trump nightmare” of tariffs was a “loss” situation for the EU, not only because of its economic impact, but also because it sucked all the attention of Brussels.

Brussels needed the courage to “negotiate with member states,” particularly to the greater negotiations, Letta said. He was obsessed with protecting his businesses and interests, fearing that the powers were “not ready to embrace the big moves of integration.”

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Turn off the tap

As Budapest continues to take over the rule of law, European lawmakers across the party group are asking the European Commission to freeze all funds for Hungary, writes Laura Dubois.

Context: The EU is currently withholding around 18 billion euros in funds exclusively for Budapest on concerns about corruption, discrimination against LGBT+ people and violations of the rule of law. Last year, the European Parliament sued the committee over a freeze of around 10 billion euros in a transaction to support Budapest for Ukraine.

Congressmen are now increasing the pressure.

“The European Commission urges the Viktor Orbán government to halt all EU funds in Hungary immediately, thereby increasing pressure on the Viktor Orbán government to stop violations of the EU values ​​and EU law,” a group of 26 lawmakers wrote in a letter to the committee seen by the FT.

The letter, launched by Green MEP Daniel Freund, lists many measures that constitute a “surprising regression” about the rule of law, including those that undermine the independence of the judicial system.

They highlight bills that “NGOs that allow states to blacklist are considered as threats to sovereignty.” The law discussed in Congress yesterday allows “sovereign offices” to investigate NGOs or media organizations receiving foreign funds and impose potentially heavy fines. Critics see it as a measure to quell the dissenting opinions of Prime Minister Victor Orban.

Lawmakers also criticize Hungarian law and allow the suspension of citizenship of dual citizens, which are perceived as a threat, and the ban on the march of Budapest Pride.

“Given these troubling developments, I firmly believe that the EU must coordinate its response,” writes MEPS. “We therefore consider freezing all funds proportionate to the risks brought to the Union’s economic benefits.”

The lawmakers also warned against allowing Hungary to use loopholes to recapture some funds.

Commission figures show that over the past three years, Hungary has spent around 6 billion euros from its annual EU budget.

What to see today

Annual EU Budget Conference

The EU and the Foreign Ministers of the African Union will meet in Brussels.

President Roberta Metosola of the European Parliament meets Italian President Sergio Matarera to hold the Chamber of Commerce plenary session in Brussels.

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