Hungary Submits Proposals Aimed At Avoiding Loss Of EU Funds.

Hungarian Justice Minister Judit Varga (file photo)

Hungary's government has submitted a bill to parliament aimed at avoiding the loss of billions of euros from the European Union, Justice Minister Judit Varga has said.

The proposal modifies legislation relating to Hungary's cooperation with the EU's anti-fraud office and rules affecting state asset-management foundations.

Varga said on Facebook she had submitted the first bill to parliament as the government focuses on "drafting and implementing the commitments (to the EU) in coming weeks and months."

A day earlier, the EU's executive called for the suspension of 7.5 billion euros ($7.5 billion) in EU funding earmarked for Hungary over corruption, rights, and rule-of-law disputes.

The European Commission also set out requirements for Hungary to keep access to the funding, including new legislation.

Critics in Brussels have argued that cronyism under Prime Minister Viktor Orban and his Fidesz party's 12-year leadership, anti-LGBT legislation, and other backsliding threaten shared EU values.

Last week, the European Parliament approved a resolution saying Hungary was no longer a "full democracy," prompting Fidesz to accuse it of "attacking Hungary again."

Varga was quoted earlier by the Spanish newspaper El Correo de Espana as saying the European Parliament was waging an ideological witch-hunt against Hungary and was trying to hinder its negotiations with the commission about EU funds.

'We are engaging in a very constructive, very positive negotiating procedure," Varga told the newspaper regarding talks with the European Commission on the rule-of-law mechanism and the withheld recovery funds.

The European Commission's proposal to cut off billions in so-called cohesion funds to Budapest was the first to be made by the EU under new policies aimed at protecting the rule of law in the 27-member bloc.

The next EU step requires support by what's called a "qualified majority," representing at least 55 percent of the member states and at least 65 percent of the total EU population.

Hungary has until November 19 to address the concerns and some of its officials have pledged to form an anti-corruption body and make other moves to allay EU concerns.

Hungary's minister in charge of EU negotiations, Tibor Navracsics, said after the European Commission's recommendation that there was "a good chance" his government would be able to sign an agreement over the use of European funds by the end of the year.

Orban, who was reelected for a fourth consecutive term in April, has resisted European unity over gas and economic sanctions to punish Moscow's unprovoked invasion of Ukraine and otherwise cozied up to Moscow, including traveling to the funeral of former Soviet leader Mikhail Gorbachev and sending his foreign minister for a surprise visit in July.

A Kremlin spokesman on September 19 praised Hungarian leadership for what it described as Budapest's willingness to take "sovereign positions" on issues within the EU.

The September 19 statement from Russian President Vladimir Putin's office came in a conference call between spokesman Dmitry Peskov and reporters.

He said the Kremlin was following the EU-Hungary developments closely.

With reporting by Reuters