The European Commission announced on Thursday it would hold back all EUR 22 bn of EU cohesion funds for Hungary until its government meets conditions related to judiciary independence, academic freedoms, LGBTQI rights and the asylum system.
EU institutions had already decided on December 12 to freeze EUR 6.3 bn of the funds until the right-wing and eurosceptic government of Viktor Orbán meets an even tougher set of 17 conditions also linked to the judiciary and dealing with corruption at high levels.
The EUR 22 bn is the amount of EU cohesion funds that Hungary is to get from the EU’s long-term budget between 2021 and 2027. They are transfers from the EU meant to equalise the standards of living between the richest and poorest members of the 27-nation EU, paid out mainly as reimbursements for money spent on agreed goals by individual governments.
The sum for Hungary is earmarked for programmes including education for disadvantaged children, rail transport upgrades, access to broadband and aid for regions affected by coal plant closures.
The decision to hold back the full amount for the country was made because on Thursday the Commission and Budapest signed what is called a partnership agreement which details how money from the EU budget is to be spent, as well as 11 operational programmes under the cohesion policy.
“The European Commission considers that the horizontal enabling condition on the Charter of Fundamental Rights is not yet fulfilled. This means that the European Commission cannot reimburse expenditure. We will keep working with Hungarian authorities to overcome this situation,” said Elisa Ferreira, EU Commissioner for Cohesion and Reforms.
What Hungary will be able to get without any prior action is 1.5 percent of the funds in the form of pre-financing as well as some cash in technical assistance for the preparation of the projects.
Hungary and the EU have long been at odds over the rule of law, corruption, the treatment of sexual minorities, education and migration policies.
On top of the cohesion funds, the EU is also holding back Hungary’s EUR 5.8 bn in grants from the EU’s recovery fund until the government addresses concerns over the independence of courts.
source:
Reuters
