21 Hungarian Universities on the brink of losing EU Funding! What’s blocking over €6 Billion from reaching Hungary?

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Viktor Orbán empowering his son to find far-away business opportunities and create a new secret service. Photo FB/Orbán

Several Hungarian universities are at risk of losing EU funding due to concerns over governance structures and public procurement practices. Hungary currently finds itself unable to access over EUR 6 billion in cohesion funding and the Recovery Fund from the European Commission, despite some funds being made available at the end of last year.

According to Privátbankár, the Commission is awaiting a new response from the Hungarian government, with no new legislation being adopted. This issue sheds light on the scrutiny surrounding EU funds and the stalled negotiations between Hungary and Brussels.

Last December, the European Commission released EUR 10.2 billion in EU funds to Hungary, commending the government’s efforts in judicial reform efforts. However, EUR 6.3 billion of cohesion funds remain blocked due to concerns regarding the rule of law.

The EU Funds

Approval of Hungary’s plan under the Recovery Fund is pending until all 27 super-milestones are met. In total, around EUR 21 billion remains blocked. Although the Hungarian government recently announced the release of an additional EUR 2 billion, most of which will go towards teachers’ salaries, access to the majority of the funds remains restricted. The reasons for this ongoing blockage are still under scrutiny.

Starting from spring 2022, the rule of law mechanism, applicable to all EU countries including Hungary, aims to safeguard EU financial interests and uphold EU values.

This mechanism links the allocation of EU funds to adherence to the rule of law. Specific expectations set by the European Commission include amendments to laws, particularly in public procurement, legal remedies in corruption cases, transparency and public interest trusts, such as universities. Compliance with these requirements is essential for Hungary to access full EU funding. Besides, the ongoing issue also adversely affects Hungarian universities.

Hungarian universities in danger

Several Hungarian universities are at risk of losing EU funding due to concerns over governance structures and public procurement practices. If these issues are not addressed by September, 21 Hungarian universities may face funding cuts.

Access to funds from the Recovery Fund and Cohesion Fund is contingent upon meeting specific criteria, including the resolution of governance concerns and alignment with the EU Charter of Fundamental Rights. While there is disagreement within the European Commission regarding the Hungarian case, upcoming EU elections and renewals further complicate the situation.

The Government’s “reaction”

The Hungarian government remains silent on inquiries regarding EU funding conditions, with attempts to reach the Ministry of European Union Affairs yielding no response. According to sources close to the government cited by Mandiner, the European Commission is hesitant to provide clear guidance on proposed conditions for fear of backlash from the European Parliament.

Mandiner suggests that the government’s lack of action may stem from a strategic decision to avoid granting the Commission too much authority, opting instead to wait and observe. This indicates a high-stakes political game, where professional considerations intertwine with political manoeuvring on both sides.

Read also:

  • Hungary signs agreement with Times Higher Education – details HERE
  • Do you want to study in Hungary? Check out the best Hungarian universities – details HERE

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