Hungary Loses Out On $1 Billion In EU Funding
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Hungary has been officially denied some $1 billion dollars in European Union funding that the bloc had frozen because of corruption allegations.

Hungary has been officially denied some $1 billion dollars in European Union funding that the bloc had frozen because of corruption allegations.

The move, confirmed in an EU statement late on December 31, was the first time that it had taken such a step against a bloc member.

Budapest made no immediate statement about the expired funds.

That amount was part of a larger sum – 19 billion euros ($19.7 billion) – that had been frozen, dating back to 2022, when Brussels began “conditionality” proceedings against Hungary.

Those proceedings blocked the disbursements of funds because of allegations that the Hungarian government had violated rules on public procurement as well as a lack of control and transparency.

Budapest made a number of reforms that allowed some funds to be unblocked, but the deadline for the release of the latest installment expired on December 31.

That meant that Hungary lost the funding, which amounted to 1.04 billion euros ($1.08 billion).

In a report released in July, the European Commission said that Hungary did not meet EU democratic standards, specifically regarding political financing, conflicts of interest, and media independence.

  • Fitik@fedia.ioOP
    5·
    4 days ago

    There’s an explanation from a different source talking about the same story:

    Hungary has lost one billion euros in European Union funds that were frozen over corruption concerns, marking the first time Brussels has enforced such a penalty.

    In 2022, Brussels began “conditionality” proceedings against Hungary, seeking to block disbursements because of alleged infringements linked to public procurement as well as a lack of control and transparency.

    Budapest did undertake reforms that allowed some funds to be unblocked, but a total of €19 billion remain frozen.

    Under timelines laid out in the EU’s conditionality regulation, “the first tranche of suspended commitments” – which amounted to €1.04 billion – expired at the end of 2024 without the suspension being lifted, the commission said this week.

    This means Hungary has now lost that funding

    Source