Good news on EU funds: Commission may allow billions of euros to Hungary within weeks

Billions of euros
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While the Hungarian government does not seem to let go of the communication that the European Commission is withholding EU funds due to Hungary, the British business daily Financial Times and the Hungarian finance news portal Portfolio have now reported that Brussels may soon unblock EUR 13 billion in cohesion funding. This sum is technically only EUR 10.7 billion, as EUR 2.7 billion could still remain blocked.

According to Brussels, the judicial reform agreed by the summer could properly meet the horizontal eligibility criteria for cohesion funding. Thus, the part of the budget blocked by the rule of law procedure could be released to Hungary, Portfolio reports.

The Commission’s letter to the government

The Commission’s press service confirmed to Portfolio that a letter was sent to the Hungarian government on 27 September seeking clarification on a number of issues related to the judicial reform. They have indicated that until they receive a response, their 90-day timeframe for the investigation will not be exhausted. Officials in Brussels told Portfolio that the issues in dispute concern the automatic case allocation system of the Curia and the functioning of the National Council of the Judiciary.

Funds expected for January

Informally, several EU diplomats told Portfolio that Viktor Orbán’s claim on Friday that payments would depend on the Polish elections was untrue. The government sent its self-assessment on 18 July, launching the process of deciding on the release of cohesion funds. The Commission has 90 days to examine the Hungarian judicial reform. The Financial Times also reports that the EUR 13 billion freeze on EUR 22 billion in cohesion funds for less developed EU countries could be lifted by the end of November.

As the Commission has sixty days to examine the cohesion accounts, which can only start after a positive assessment, it is expected that the disbursement of Cohesion Funds will start in mid-January.

Government sources told Portfolio that around HUF 500 billion is expected in January.

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