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Corruption: Brussels threatens to deprive Hungary of 7.5 billion euros in funding

2022-09-18T13:14:05.695Z


Hungary is scrambling to try to escape the ax as the country battles runaway inflation and the fall of the forint, the currency.


Brussels maintains financial pressure on Budapest.

The European Commission threatened on Sunday to deprive Hungary of 7.5 billion euros in European funding, because of the risks linked to corruption in this country.

The 27, however, give Budapest a few weeks to carry out reforms.

“The measures proposed (by Hungary) to remedy the situation are in principle likely to respond to the problems identified, if they are correctly translated into laws and implemented accordingly,” said European Budget Commissioner Johannes Hahn. .

“Irregularities”, according to Brussels

In April, the European Commission launched against Hungary a procedure never used before, which can lead to the suspension of European funding whose use is threatened by attacks on the principles of the rule of law.

For Viktor Orban's Hungary, the Commission cites in particular "irregularities" and "shortcomings" in the procedures for awarding public contracts: the "abnormally" high proportion of single applications for these contracts, the lack of control of conflicts of interest and legal proceedings in the event of suspicion of fraud.

Read alsoRepeated excesses, double game with Russia … why Viktor Orban is more isolated than ever

The European executive therefore suggests to the Council, an institution representing the Member States which is responsible for the final decision, to suspend 65% of the funds of three programs linked to cohesion policy, which represents 7.5 billion euros.

However, a way out remains open.

The Commission recommends that the Council allow itself up to three months to assess the implementation of the 17 key measures to which Hungary has committed to address the concerns.

“We are moving in the right direction”

“It is right to give yourself a little time in order to be able to really see the concrete results” of these reforms, declared Johannes Hahn, believing that they could “change the game”.

The Commission will reassess the situation on 19 November.

“We are moving in the right direction.

We continue the work (…) so that the Hungarian people receive the resources to which they are entitled!

“Reacted the Hungarian Minister of Justice, Judit Varga, who has toured several European capitals in recent days to plead the cause of her country.

Budapest is struggling to try to escape the ax, but also to convince Brussels to unblock its post-Covid recovery plan (5.8 billion euros in subsidies), as the country faces galloping inflation and the fall of the forint , the national currency.

Hungary is the only EU country whose plan has still not received the green light from the European Commission, for the same reasons related to respect for the rule of law.

Source: leparis

All news articles on 2022-09-18

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