The European Union says Hungary has not answered all of the questions raised by the bloc about its respect for democratic rights and freedoms.
The EU has threatened legal action and is delaying a deal on aid if changes are not made to legislation on the central bank, data-protection agency, and judiciary.
The European Commission on March 7 gave Hungary one month to change several controversial laws and avoid being taken to the European Court of Justice.
Hungary has requested financial help from the EU and the International Monetary Fund.
Commission spokeswoman Pia Ahrenkilde Hansen said the conditions for beginning discussions on the issue had not yet been met.
With AP and dpa reporting