EU wants to suspend funds for Hungary

The European Commission proposed suspending 7.5 billion euros in funds for Hungary, while waiting for Budapest to meet the promised reforms in the fight against corruption.

The European Union and Hungary have been at odds for months, with Brussels suspecting that the nationalist-led government Victor Orban is undermining the rule of law and using EU money to enrich its friends.

The “Commission proposes suspension of 75 per cent of commitments for cohesion programmes and cohesion policy, amounting to 7.5 billion euros, Johannes Hahn said Sunday at a media conference, EC Commissioner for Business.

“Hungary has pledged to fully announce the Commission for the implementation of improvements through November 19th”, he said.

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The final decision on this proposal will be made by the EU Council.

On Saturday, the Hungarian government said MPs will vote next week on a set of laws aimed at lowering tensions with the European bloc in terms of meeting reforms.

Gergely Gulyas, chief of the Orban staff, told reporters that Hungarian MPs are expected to vote on measures meant to ease concerns about corruption and lack of transparency in public procurement.

“The bills will be sent to Parliament next week. We expect that Monday and Friday they will be voted and brought into force in November”, he said.

The new measures are expected to include the creation of an anti-corruption monitoring body in order to monitor EU funds.

The EC's announcement of suspension of funds comes at a time when Hungary is facing high inflation.