The EU executive proposes to take €7.5 billion from Hungary He says the remedies proposed by Hungary could work if implemented correctly 27 EU countries have three months to decide, without a veto The EU is testing a new democracy sanction for the first time
BRUSSELS, Sept 18 (Reuters) – The European Union’s top official on Sunday recommended suspending about 7.5 billion euros in funding to Hungary over corruption, the first such case in the 27-nation bloc under a new sanction aimed at better protecting of the rule of law. The EU introduced the new economic sanction two years ago precisely in response to what it says amounts to undermining democracy in Poland and Hungary, where Prime Minister Viktor Orbán has subjugated courts, media, NGOs and academia, as well as curbing rights of immigrants. , gays and women during more than a decade in office. “These are violations of the rule of law that put the use and management of EU funds at risk,” said EU Budget Commissioner Johannes Hahn. “We cannot conclude that the EU budget is adequately protected.” Sign up now for FREE unlimited access to Reuters.comSign up It highlighted systemic irregularities in Hungary’s public procurement law, inadequate safeguards against conflicts of interest, weaknesses in effective prosecution and shortcomings in other anti-graft measures. Hahn said the Commission is recommending the suspension of around a third of the cohesion funds earmarked for Hungary from the bloc’s joint budget for 2021-2027 totaling 1.1 trillion euros. The disputed €7.5 billion amounts to 5% of the country’s estimated GDP for 2022. EU countries now have up to three months to decide on the proposal. Hahn said Hungary’s latest pledge to address EU criticism was an important step in the right direction, but needed to be translated into new laws and practical actions before the bloc could be reassured.
CORRUPTION
Orban’s government has proposed the creation of a new anti-graft agency in recent weeks as Budapest comes under pressure to secure money for the struggling economy and the forint, the worst-performing currency in the EU’s east. Orban, who calls himself a “freedom fighter” against the worldview of the liberal West, denies that Hungary – a former communist country of about 10 million people – is more corrupt than others in the EU. The Commission is already blocking around €6 billion in funds earmarked for Hungary in a separate economic recovery stimulus for COVID due to the same corruption concerns. Reuters documented in 2018 how Orban funneled EU development funds to his friends and family, a practice that rights groups say has greatly enriched his inner circle and allowed the 59-year-old to entrench himself in power. Hungary had irregularities in almost 4% of EU funds spent in 2015-2019, according to the bloc’s anti-fraud agency OLAF, by far the worst result among the 27 EU countries. Orban has also rubbed many in the bloc the wrong way by cultivating continued close ties to President Vladimir Putin and threatening to deny the EU unity needed to impose and maintain sanctions on Russia for its war against Ukraine. https://www.reuters.com/investigates/special-report/hungary-orban-balaton/ Sign up now for FREE unlimited access to Reuters.comSign up Report by Gabriela Baczynska. edited by David Evans Our Standards: The Thomson Reuters Trust Principles.
