New year, new challenges: Hungary loses over EUR 1 billion in EU funds
Hungary’s ongoing struggle to secure EU funds has escalated even more. Over EUR 1 billion was permanently lost due to unresolved issues with rule-of-law compliance.
EUR 1 billion in EU funds lost
As Telex reports, Hungary is facing serious financial consequences as it permanently loses over EUR 1 billion in EU funds—the first time this has happened to a member state. The funds were frozen back in 2022 as part of an EU procedure aimed at protecting its budget from rule-of-law breaches. In that year, member states blocked EUR 6.3 billion, pointing to widespread issues with Hungary’s public procurement system, including corruption risks and lack of transparency.
Although Hungary has taken steps to address these concerns—such as setting up an Integrity Authority and reforming public tender processes—the European Commission recently ruled that the problems haven’t been fully resolved. As a result, vital funding for areas like energy efficiency and transport is now off the table. This loss could further strain Hungary’s budget, forcing the government to borrow more at a time when it’s already under pressure from an EU excessive deficit procedure.
Long-standing issues
Hungary had an additional year to avoid losing EU funds for three key programmes but failed to meet the conditions set by the European Commission. While the government claims the issue has shifted from technical and legal compliance to political negotiation, it made limited progress in addressing the EU’s concerns. Restrictions imposed in 2022 not only froze EUR 6.3 billion in funding but also blocked public interest trusts, including universities undergoing model changes, from accessing new EU tenders.
Despite being able to request a reassessment at any time, Hungary’s efforts have fallen short. The Commission cited unresolved issues, such as conflicts of interest in public interest trusts and a lack of transparency. Attempts to exempt certain entities from restrictions have only exacerbated tensions. As a result, the partial suspension of cohesion programme funding remains in place, further straining Hungary’s institutions
Hungarian students face challenges
Hungary’s struggle to secure EU funds has led to significant financial and institutional strain, with universities, research programmes, and students feeling the impact. A ban on public interest trusts has already cost millions in Horizon Europe collaborations and barred Hungarian students from Erasmus exchanges. The government introduced alternative programmes like HU-rizont and Pannonia, funded by taxpayers, but their budgets pale in comparison to the EU resources lost.
Hungarian politicians’ standpoint
Adding to the burden, Hungary faces daily penalties of EUR 1 million due to non-compliance with refugee rights rulings, amounting to EUR 400 million by late 2024. While Prime Minister Orbán insists that current EU funds will sustain the economy until 2026, the looming n+2 rule threatens further losses. Efforts to negotiate with the European Commission continue, but critics, including opposition leader Ferenc Gyurcsány, accuse Orbán’s government of recklessness, blaming its actions for Hungary’s financial setbacks. In addition, Péter Magyar, leader of the Tisza Party, often emphasises that his goal is to bring home EU funds. However, as political and financial pressures mount, securing EU funds remains a critical challenge for the Hungarian government.
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Orban = Big Fat Loser : Who else in the EU loses more than 1 billion euros like that? – Nooobody! Keep voting for him and Hungary can keep losing more.
Hungary’s so rich it doesn’t need to consider bending down for a measly 1B Eur.
Never mind, that leaves more money to donate to Ukraine, they’re more in need of it anyway.
long live to Hungary, the so called “sovereign” country 😀
This is good news. Less money for pedo-fidesz
Sad to see the stubborn old conservative leadership taking away possibilities from the youth. With fewer and fewer funds, health care and education will surely keep on deteriorating. But public control offices like the new “Sovereignty Protection Office” will surely have even more funding. Fidesz has ruled too long. New leadership is needed to clean up corrupt administration and restart cooperation with EU.
The money was spent in Ukraine, Hungary was never going to get a cent. There is a whole department in Brussels whose only job is to find out how to withhold money from Hungary and transfer said money to Ukraine.
The EU only supports slave and countries ruled by idiots like Poland, idiots that say Yawohl to Brussels. Most countries hold patriotism cheap. Thank God Hungary is not one of the slave countries and it is smart enough to keep its sovereignty.
Time to end electric supply to Ukraine. Why help an enemy nation and EU’s aim to extend the war, death and destruction. Ending the electric supply may end the war faster.
Even the ancient Roman Empire had a more normal relationship with its conquered territories. Time to leave the EU.
Keep your pieces of silver, Brussels, and choke on it, together with Ukraine.
It’s only 100 euros per capita. I, for one, gladly give it up in order to not have millions of third-world illegal aliens invade my city, maraud through it, and make my and my family’s life miserable.
@mariavontheresa Tit-for-tat is a dangerous game, you may find yourself on the receiving end, someday, and Hungary is quite small and vulnerable (“We are a landlocked country! We need Russian oil and gas! Nuclear assistance!” – not my words).
@michaelsteiner, re the “it´s only EUR 100” – again. We received a minimum of 3.5 percent of our GDP a year, every year, since we joined the EU. So – there´s this thing about joining a club. Clubs have rules?
The growing DEBT of Hungary, in money OWED to the European Union – Mindboggling.
The name Hungary, absolutely OBLIVIATED in Brussels, by the Victor Orban led Fidesz Government NEVER will be in a position of a RECONCILIATION.
The “seed” was sowned by Victor Orban, when in his 1st time in the Prime Ministership of Hungary, he become embroiled in heated exchanges with Brussels, that have just EXPLODED – in his “Second” coming, that have bought about, the rightful position adapted and undertaken by Brussels, the European Union, to “return” to Victor Orban and Hungary – No Favours.
Hungary under Victor Orban – his Fidesz Government and the European Union is a “Vesuvius” – that nears ERUPTION – that will WIPE out the Orban led Fidesz Government, opening millions of Hungarians eyes, the “loosing” games, that Orban, over decades has played with the European Union, which will result in cause, bring about DEEPENING cataclysmic destruction Financially and Economically to Hungary.
Hungary – can’t be a “Stand Alone” nation.
Hungary – has NO FUTURE without remaining in the European Union.
Russia is not threatening Hungary. Hungary is only in danger from Brussels’ dictators. Time to declare the country neutral. By the way, the 1 billion is worth a lot less this time than 5 years ago. Brussels and all Hungary’s enemies in Brussels go to Hell.