Total is lower – EU countries agree to freeze funds for Hungary – News


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Is it enough or not enough? Until recently, it was unclear whether enough other countries besides Germany would vote for the freezing of EU funds for Hungary. Now there is clarity.

  • A large majority of EU countries have agreed to freeze payments from the European Community budget of 6.3 billion euros earmarked for Hungary.
  • Like the Council of the EU in a message writes, the sum is around 1.2 billion euros lower than proposed by the EU Commission.
  • The background to the hitherto unprecedented action against Hungary is concern that EU funds are not being used properly in the country due to insufficient anti-corruption measures.

Shortly before the agreement was reached, the EU Commission renewed a recommendation that around 7.5 billion euros in funding earmarked for Hungary should be frozen until the right-wing government of Prime Minister Viktor Orban has fully implemented promises to uphold the rule of law.

The sum of 6.3 billion euros is around 1.2 billion euros lower than proposed by the EU Commission and desired by countries like Germany. However, the agreement is still considered a great success as Hungary is now under pressure to undertake further reforms to improve the rule of law.

The sum was reduced because several EU countries wanted to acknowledge that the right-wing government of Prime Minister Viktor Orban had already made efforts in this direction in recent weeks.

A qualified majority is required for the final adoption of the proposal, which means that at least 15 of the 27 EU countries must agree and together make up at least 65 percent of the total population of the EU.

This requirement has been met following the agreement reached in the Permanent Representatives Committee and is now to be formalized in a written procedure before the EU summit on Thursday. The meeting of the permanent representatives of the member states also approved the Commission’s proposal to formally confirm Hungary’s plan to use EU corona aid.

However, it also stipulates that the payments of up to 5.8 billion euros should only be made if a total of 27 requirements are met. This includes those formulated in the rule of law process.

Hungary could veto EU decisions

The further developments are eagerly awaited, above all because Hungary has considerable means at its disposal to exert pressure on the EU. For example, the government in Budapest could block decisions that require unanimity in the EU.

On the other hand, according to diplomats, Hungary even made concessions on Monday evening and gave up its blockade against new Ukraine aid and an EU law on international minimum taxes.

The reason is the threat from EU countries such as Germany to block approval of the Hungarian plan to use EU corona aid. This would have meant that by the end of the year 70 percent of the available funds of 5.8 billion euros would have expired.

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