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EC wants to withdraw €7.5 billion from Hungary

According to the EC, Hungary is not doing enough to fight corruption and is problematic in awarding public contracts.

The proposal will be sent to all EU member states. If a majority of countries accept it, Hungary will become the first EU member state to lose money from European funds because of rules that make spending from the EU budget conditional on adherence to the rule of law.

However, Hungary’s Minister for Regional Development Tibor Navracsics has promised that Budapest will meet all its commitments to the EC.

Hungary has been criticised for a long time

Hungary has long been criticized for Viktor Orbán’s handling of the judiciary, Hungary’s restrictions on media pluralism and minority rights, and its curbs on NGOs and academic freedoms.

Even according to some MEPs, Hungary is no longer a full-fledged democracy. According to them, large amounts of European funds go to people connected to Orbán, and this is one of the reasons why the money should be withdrawn.

Hungary wants to comply with the Commission

The €7.5 billion is about 5% of this year’s estimated gross domestic income. That is enough for Hungary not to bother. After years of dispute over the situation in Hungary, the situation could finally be resolved.

Until recently, Hungary has rejected most of the EU’s objections, and Orbán has built his domestic political campaign on criticism of Brussels. In recent weeks, however, the Hungarian government has made several concessions, promising, for example, to set up an anti-corruption body.

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In addition, next week Hungary is going to present several laws that should satisfy Brussels’ demands more fully. The list should include a total of 17 measures with specific deadlines by which the Hungarian Government will meet them. This will, among other things, help Hungary to unblock around €6 billion more from the EU’s recovery fund after the Covid-19 pandemic.

Bruno is an Investment enthusiast with several years of experience in the industry. He enjoys following the latest news and technology trends...


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