Leaked EU document confirms Hungarian spy ring, renews pressure on Commissioner Várhelyi

EU Commissioner Olivér Várhelyi is facing renewed scrutiny after a leaked European Commission document indicated that Hungary's Permanent Representation operated a spy ring during his tenure as Hungary's permanent representative.

Last October, several media outlets reported that Hungary's Permanent Representation to the EU in Brussels had allegedly run a network of intelligence officers posing as diplomats, who targeted Hungarian nationals working at the Commission between 2012 and 2018.

Várhelyi was drawn into the investigation because he served as Hungary's ambassador to the EU between 2015 and 2019, which overlapped with part of the period under scrutiny. He was later nominated as EU Commissioner by then-Prime Minister Viktor Orbán.

Várhelyi has denied any knowledge of the spy network.

The document, seen by Euronews, is signed by Budget Commissioner Piotr Serafin and informs members of the European Parliament of the findings of an internal investigation into the spying allegations.

"The intelligence officers used their official position to fulfil a specific mission that appears to have gone beyond the tasks usually associated with diplomats at Permanent Representations," the letter states.

"This involved, in particular, approaching Commission officials of Hungarian nationality and attempting to collect detailed information from them regarding work within the Commission on topics of specific interest to the Hungarian government."

Serafin's letter states that no serious security breaches were intercepted.

Renewed criticism of Várhelyi

The Commission announced its findings at a press briefing in early May, weeks after Hungary’s elections, which resulted in Orbán leaving power.

The statement largely cleared Várhelyi, allowing him to continue in his role. However, Péter Magyar, Hungary’s new prime minister, who previously worked under Várhelyi as a diplomat at the Permanent Representation, said the Commissioner was not telling the full truth about the matter.

In the event of a serious breach of trust, Commission President Ursula von der Leyen could ask Várhelyi to resign. Should he refuse, she could ask the European Court of Justice to remove him, Alberto Alemanno, an EU law professor at HEC Paris, told Euronews.

Alemanno argues that the confirmation of the spy ring indicates Várhelyi was not fit for the role when he was appointed as European Commissioner in 2019.

He said commissioners must be independent, experienced, and adhere to European values, adding that there was a clear lack of independence in this case. Várhelyi, in his role as Permanent Representative, breached the principles of loyal cooperation, and therefore “was not fit for the job and continues not to be fit for the job," Alemanno said.

For German Green MEP Daniel Freund, the leaked Commission document — and its confirmation of the spy ring — means Várhelyi is no longer suitable for the role.

"Either he was directly involved, or, as head of the Representation, he had no control over his own staff. Either scenario disqualifies Várhelyi from serving as a European Commissioner. The European Parliament sharply criticised him weeks ago and declared him unfit for the role. It is long overdue for him to face the consequences and resign," Freund told Euronews.

In April, the European Parliament's Budgetary Control Committee criticised Várhelyi in a report, saying he failed to meet expected standards.

Last October, dozens of MEPs called for Várhelyi's resignation. In November, a move to establish a parliamentary inquiry committee into the spy affair was blocked by the centre-right European People's Party (EPP), to which both von der Leyen and Magyar belong.

At the time, the EPP said that attacking Várhelyi could play into Orbán's hands during the Hungarian election campaign.

Removing Várhelyi would be a precedent that Brussels does not want

Since the April elections, Magyar has been pushing to remove officials appointed by his predecessor, including Hungarian President Tamás Sólyom.

Várhelyi, however, appears to have escaped scrutiny — largely because Brussels is wary of setting a precedent for revoking Commissioners following a change of government in a member state.

“Brussels is afraid of setting a precedent — they do not dare to remove someone who deserves it,” one EU diplomat familiar with the matter told Euronews, speaking on condition of anonymity.

"By doing so, they are emboldening populists," the diplomat added.

The removal of a Commissioner could prove a delicate matter for the commission ahead of the forthcoming French and Spanish elections. Once a Commissioner is removed following a political change in their home country, other member states could follow suit.

Under the law, Commissioners are required to represent the broader European interest and act independently of their country of origin.