Hungary could lose billions of euros in EU funding over ‘corruption risks’
Hungary risks losing billions in EU funding by December 2024 unless it addresses rule of law concerns and implements anti-corruption reforms. Despite some progress, key milestones remain unmet, jeopardising additional billions in cohesion and recovery funds, and potentially worsening the country’s deficit.
Risk of losing billions
24.hu reports that Hungary risks losing over EUR 1 billion in EU funding if the suspension of funds is not resolved by the European Council in December 2024. The suspension, linked to Hungary’s failure to address rule of law concerns, has been in place for two years, and without progress, the funds will be permanently lost. Currently, EUR 6.3 billion in cohesion funds—55% of three operational programmes—remains frozen, with an additional EUR 14 billion withheld under the Recovery and Resilience Instrument (RRF). The European Commission cites insufficient reforms by Hungary, especially regarding corruption risks and non-compliance with EU regulations, as reasons for maintaining the suspension.
Further potential loss
Hungary faces the potential loss of EU funds beyond the EUR 1 billion already at risk if the suspension of the 2022 allocation is not resolved by December 2024. Although Hungary is set to receive EUR 30 billion in EU funding over seven years, any unresolved issues with the rule of law conditionality procedure could result in further losses by the end of 2025. The government has pre-financed EUR 4.3 billion worth of development projects from the national budget, but delays in tendering have put around EUR 1.2 billion at stake, according to Portfolio. Additionally, the loss of EU funds would worsen Hungary’s already high deficit, with the European Commission initiating an excessive deficit procedure against the country.
Small progress last year
Hungary’s access to EU funds remains uncertain due to unmet conditions set by EU institutions. To unlock the suspended funds, Hungary must fulfil 27 “super-milestones” linked to the recovery fund and implement 17 anti-corruption measures under the conditionality mechanism, many of which overlap. While the European Commission acknowledged progress in judicial reforms, releasing over EUR 10 billion in funds in November 2023, Transparency International (TI) argues that judicial independence remains compromised. According to sources, Hungary has met only four of the 27 milestones, making further progress unlikely by December 2024. Therefore, failure to meet these conditions could result in the permanent loss of around EUR 1 billion in EU funds.
Lack of transparency?
Hungary’s progress in meeting EU fund conditions remains limited, with key anti-corruption and transparency measures lagging. According to Transparency International, government actions on many non-justice milestones are either partial or contradictory. A notable issue is the high abuse in public procurement, with single-bid contracts still prevalent. Despite some reduction in EU-funded tenders, domestic public procurement remains problematic. Asset declarations by public figures also lack transparency, with recent changes seen as a step backwards.
The Arachne risk assessment system, crucial for overseeing EU fund spending, remains only partially operational. While anti-corruption bodies have been established, they lack sufficient powers, and Hungary’s anti-fraud strategies have been deemed inadequate. TI highlights the challenge of addressing systemic corruption in Hungary, where the government prioritises maintaining power over meeting EU conditions, limiting the impact of reforms aimed at ensuring the proper use of EU funds.
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Fidesz is incapable of reform because reform would end their authoritarian control over the Hungarian people. Reform would allow the opposition to get its’ message out and compete on a level playing field free of persecution by the state, reform would make it more difficult for Fidesz politicians to extract the billions of euros they steal from Hungarians from public projects and corrupt trade deals with countries like Russia and China and other corrupt authoritarian states they shift trade to. If Fidesz has not put in place necessary reforms all of this time it is not going to accomplish it in the three months they have left. The Hungarian people continue to be impoverished due to their greed for money and power.
PRESSURIZATION on Hungary, through the Orban – Fidesz Government “Heinous” acts over 15 years – that SLOWLY the citizens of Hungary are beginning to ACCEPT that they have been getting SCREWED big time by the Orban – Fidesz Government, the Oligarchie, that, as a country, and that we HUNGARY are in DREADFUL place, that worsens – as a country daily and it’s NADIR what will be left of Hungary – the un-known.
No FAVOURS from any country that is GOVERNED under DEMOCRACY – will be rightfully AFFORDED given to Hungary.
European Union, the United States of America, Great Britain and Northern Ireland, NATO, Schengen – in the NAME for the FUTURE of DEMOCRACY – the country of Hungary, under a Prime Minister – Victor Mihaly. Orban and the Party he leads – the Fidesz Government of Hungary – no country associated to the name DEMOCRACY – will do FAVOURS of any type for Hungary.
Victor Mihaly. Orban – singlehandedly – has DESTROYED the reputation of Hungary.
Orban – singlehandedly has eliminated any TRUST of Hungary, through the Heinous acts of crime committed by the Orban led Fidesz Government of Hungary.
Orban – has singlehandedly seen to the DISTILLATION of DEMOCRACY in Hungary.
Orban – is RESPONSIBLE to sending Hungary to a present state that is an Economic & Financial cataclysmic collapsing MESS.
Orban – is responsible for the FACT, that 3.1 million Hungarians are living in POVERTY at this present time and it’s RISING.
Orbab – is responsible for the FORINT continuing to DECREASE in value against the Euro – that 425 – 435 is NOT an impossibility of what it’s “WORTHLESS’ growing status could be.
Orban – is responsibly for the BASTIDIZATION of Hungary – the “Sell Off” – to COMMUNISTIC Governed China and Russia, which continues.
Orban – is responsible for the Government DEBT of Hungary – borrowings at humongous interest rate charges and “conditions” in the case of any Defaults – from China & Russia.
Orban – is responsible for the DEBT – owed to the European Union – that the daily compound interest charges alone are GARGANTUAN and just continue to RISE & rise – through the FACTUAL in-ability of Hungary, to pay back monies to the European Union, that have come about by the Orban led “Heinous” Government of Hungary, there in-ability to COMPLY to the Rules and Regulations of European Union Membership – under the word – the CREED of membership in being a member country of the European Union – DEMOCRACY, which we know, because of greater FACTUALITY daily, being EXHIBITED, disclosed, made TRANSPARENT – that Hungary are no longer, haven’t in FACT for the time of there Governance of Hungary, of 15 years – under the “infamous” – Victor Mihaly. Orban – a country being Governed and Ruled under DEMOCRACY.
Hungarians – are awakening to the FACY – they have been FAILED by Victor Mihaly. Orban and his Fidesz Government.
Hungarians – must not SWOLLOW all that will come out in OFFERINGS from the WRECKER’s of Hungary – in the lead up to the next National Elections.
FALSE promises – FALSE plans for the FUTURE that as a GOVERNMENT – Orban and his Fidesz Government can’t FORFILL and won’t HAPPEN as they have NO money for Investment NOW and between NOW and the next National Elections – if Orban & the Fidesz Government are or still remain as the Government of Hungary – the entire Economic and Financial LANDSCAPE will represent a SICKER somewhat deeper hopeless picture than it is NOW, that WORSENS.
Orban – the Fidesz Government of Hungary – PROPAGANDA – we will get BOMBARDED with it, that will be False and Lies what we have factually LIVED with over the course of the 15 years – the Government of Hungary under the Prime Ministership of the “infamous” – Victor Mihaly. Orban – they have FEED us.
Appalling.
Propaganda – as any logical plan to save or reverse the humongous downward TREND of life, the quality of Life, that Orban, his Fidesz Government have DELIVERED us to live with and in September of 2024 – millions fighting for there SURVIVAL, a country fighting for its SURVIVAL – nothing that COMES out of the Orban – Fidesz Government can be taken SERIOUSLY viewed as PROPAGANDA – looking upon its CIRCULATION throughout Hungary, our city’s, towns, villages and “growing” hamlets – other than being DESPERATE measures in the promoting – the circulation of Lies and FALSE promises from a Government, led by the “infamous” – Victor Mihaly. Orban and his Fidesz Government, that are IMPLODING and in a stage of being a PARALZED and dysfunctional panic stricken Government – that just continues on a course that deepens the DESTRUCTION – that “Gravely” deepens / threatens the FUTURE of Hungary.
“A lie is like a snowball :
the further you Roll it, – the BIGGER it becomes.”
Marvellous quote from a person, who lived a life 1483 – 1546 – a life that LEGACY is found – that all these century’s on the positives of his life, what he did, what he provided, his leadership and respect – his LEGACY that the good of his contribution to mankind, to life, the future of life, they far outweighed his KNOCERS and century’s on, he REMAINS – Respected rightfully.
It ALL is WORSENING and don’t SWOLLOW the PROPAGANDA – please HUNGARIANS.
The corrupt entities in Europe are Brussels and all socialist countries like silly Estonia, Latvia, Lithuania and Luxemburg, and France.
Dear MAria, you are missing, a lot of coutries, like poland, italt, Sweden, spain etc, if you dont like it, please ask to your leader to leave!
I just got tired of naming the other 26 member states of the EU. Worst corruption takes place in EU courts. If you do not dance, you are guilty.
Uh. @mariavontheresa – let´s break this down. A definition. Let´s go with Wikipedia:
https://en.wikipedia.org/wiki/Corruption
Then … Benchmark. You may not like Transparency International, however their data is very transparent and the methodology robust (and, yes, Hungary ranks lowest in the EU, and is outperformed globally by the likes of Ghana):
https://images.transparencycdn.org/images/CPI-2023-Report.pdf
You can skip straight to Page 18 if you like – TLDR style. “Weak accountability and political corruption are undermining the rule of law in a region where people are losing trust in their institutions. In the most alarming cases, narrow interest groups have too much control over political decision-making. In others, governments are targeting journalists, whistleblowers and other watchdogs”. Hmmm … Can we think of any examples?
And, again, if you´re Member of a club – you need to adhere by the club´s rules. In an international context, it may mean you have relinquished sovereignty in certain areas and are subject to external decisions and judgments. Read the fine print?
Because of the SPAR ruling, Maria? Are you so upset about this because the government told you to be, or did you come to an independent decision based on the merits of the case? I take it you read the judgement at least?