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EU Commission proposes releasing $4.7 billion in frozen funds to Hungary

EU Commission proposes releasing $4.7 billion in frozen funds to Hungary
— Foto: Anadolu Agency

The European Commission says Hungary has addressed rule-of-law concerns, potentially restoring access to cohesion funding and EU education and research programmes.

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The European Commission has proposed lifting measures imposed on Hungary over rule-of-law concerns, potentially unlocking €4.2 billion ($4.7 billion) in cohesion funding and restoring full access to the Erasmus+ and Horizon Europe programmes.

The proposal requires approval by the EU Council and follows the Commission’s assessment of reforms and remedial measures submitted by Hungary on September 9, according to a statement.

Funding could be restored after Council approval

The Commission said Hungary had addressed previously identified shortcomings involving public procurement, anti-corruption safeguards, conflicts of interest and the effectiveness of prosecutorial action.

“If adopted by the Council, the proposal would reinstate €4.2 billion in suspended cohesion policy commitments and restore access to Erasmus+ and Horizon Europe for students and researchers from universities maintained by Hungarian Public Interest Trusts,” the statement said.

European Commission President Ursula von der Leyen said Hungary had taken steps to strengthen the rule of law and protect the EU’s financial interests.

“I am glad that they will once again fully benefit from the opportunities our Union creates,” she said.

Measures were imposed in 2022

The European Council adopted measures against Hungary in 2022 following a proposal intended to protect the EU budget from what EU institutions described as “breaches of rule-of-law principles”.

The measures included suspending 55% of budgetary commitments under three cohesion policy programmes for the 2021–2027 period.

The EU Council also prohibited the Commission from entering into new legal commitments with Hungarian public interest trusts and entities maintained by them for EU-funded programmes implemented under direct or indirect management, including Erasmus+ and Horizon Europe.

This article was processed automatically and checked by the editorial team.

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