However, as Hungary is embedded in the European multi-level governance system, the European integration shall not be understand as an external environment to this illiberal political system but rather as a crucial determining factor fulfilling two systemic functions. In this respect the European Union serves both as external constraint and external financial resource for the Hungarian regime. The EU restricts the limitation of fundamental rights and constitutional standards while on the other hand it makes financial resources available by the cohesion funds which are essential to the stability and political survival of the regime. Therefore Hungary does not fit to the definition of “illiberal democracy” introduced by Fareed Zakaria. Contrary to Zakaria’s explanation, illiberal constitutional engineering has undermined the rules of fair political competition in Hungary while the core of fundamental rights is guaranteed as a consequence of the EU’s “constraining function.”