The European Commission said on Friday that Hungary’s recent anti-corruption reforms were not enough to release 7.5 billion euros of debt. financing in euros, thus further aggravating the dispute with Budapest.
Last month, Brussels recommended freezing billions of euros in funding to Hungary over concerns about the state of democracy and corruption in the country.
Prime Minister Viktor Orbán’s right-wing government responded by blocking EU decisions on crucial financial aid to Ukraine and a deal on a minimum corporate tax.
To break the deadlock, EU member states led by France and Germany have asked the EC to reassess the latest Hungarian reforms. However, the bloc’s executive authority did not change its position.
“Despite the measures taken by Hungary, the overall risk to the EU budget remains unchanged,” Budget Commissioner Johannes Hahn wrote in a letter to the Czech Presidency.
This means that the 27 EU member states have until December 19 to decide whether or not to withhold funds intended for Hungary.
That could lead to a tense showdown at next week’s leaders’ summit in the Belgian capital with nationalist Mr Orban, a perennial headache for Brussels.
In addition to the €7.5 billion 5.8 billion core funding from the EU, Hungary is also requesting a disbursement of €5.8 billion. euros from the suspended funds of the post-pandemic economic recovery fund.
Last month, the Commission approved Hungary’s spending plan for the recovery fund, but member states must assess whether Budapest is making enough progress on key reforms to receive the funding.
Source: The Delfi
