The EU wants to freeze the billions of euro funds from Hungary

The Commission of the European Union (EU), within the framework of the recovery program prepared to mitigate the economic effects of the Covid-19 epidemic, the 5.8 billion euros for Hungary and the 7.5 billion euros expected to be received from the budget of the EU, if the country advances in the rule of law, he offered.

EU Commission Vice President Valdis Dombrovskis and Commissioners Johannes Hahn and Didier Reynders held a press conference in Brussels on the decision taken regarding Hungary’s use of various EU funds . Stating that they positively evaluated the bailout plan submitted by Hungary to the EU Commission, Dombrovskis said: “Hungary has a solid reform and investment program that meets all the conditions of the relevant regulation.”
Dombrovskis stated that they approved the Hungarian bailout plan and said that they did not assess the implementation of the plan at this stage.

Reminding that the plan must be approved by the member states in the European Council for the plan to enter into force, Dombrovskis affirmed that they will evaluate the program to be implemented and if they find it sufficient, they will release the funds. “Hungary needs to meet 27 key milestones before it can start receiving payback program payments,” Dombrovskis said.

Stating that the milestones are also included in the scope of the conditionality mechanism, Dombrovskis said that Hungary should take action regarding corrective measures. Noting that the conditionality mechanism with regard to the EU budget works differently, Dombrovskis stated that they decided to suspend 7.5 billion euros, which represents 65 percent of the harmonization funds that Hungary can receive within the scope of the mechanism. .

The EU has long criticized Hungary for backtracking in key areas such as democracy and the rule of law. In addition, the EU did not approve Hungary’s bailout program and did not transfer EU funds to the country under the rule of law mechanism.

On 18 September, the Commission proposed to suspend approximately €7.5 billion of funds provided to Hungary from the EU budget for violating the rule of law. In return, Hungary had committed to take 17 corrective measures.
In the final evaluation, the Commission found Hungary’s steps insufficient and recommended that no EU funds be sent to the country.

The European Council is expected to take its decision on the Commission proposal by a qualified majority in December. (AA)