Local governments and NGOs to receive the EU funds in Hungary?

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The European Parliament adopted a resolution on Thursday, calling on member states to cooperate in preventing fraud harming the EU budget, and urging strict control of the EU recovery funds.

In a resolution adopted at the EP plenary session with 437 votes in favour, 94 against and 39 abstentions, MEPs called on the European Commission to fulfil its duties and engage more effectively with severe violations of the principles of the rule of law in some member states. The resolution welcomed the rule of law mechanism launched against Hungary last year, and called on the EC to consider doing the same against other member states similarly running afoul of the principle.

The resolution proposed that

if the Hungarian and Polish governments failed to fulfil all requirements for access to EU funds, the EC should temporarily handle EU resources in cooperation with local governments and civil organisations.

While the resolution acknowledged the efforts of Ukraine’s neighbours in accepting refugees since the start of the war, it said EU funds could not be disbursed to countries that fail to comply with the rulings of the European Court of Justice and do not acknowledge the supremacy of EU law. The MEPs expect a new control mechanism and preventive measures regarding the 1.8 billion euros to be disbursed in the 2021-2027 financial cycle.

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