Der Standard: Modul University Vienna kicked out of Erasmus due to close ties with Orbán government

Modul University Vienna, a prestigious private institution, is facing significant challenges after the European Commission declared it ineligible for EU funding. The decision, linked to a controversial ownership change in 2023 involving a Hungarian foundation associated with the Orbán government, affects both Erasmus scholarships and Horizon Europe research funding, sparking widespread debate over its justification.

EU funding decision

Modul University Vienna, a renowned private institution specialising in tourism studies, has recently been at the centre of a significant EU funding decision. According to Der Standard, the European Commission clarified that the university in Kahlenberg, Vienna, is no longer eligible to receive EU funding for its students. This measure follows a highly unusual move by the EU to restrict a university from enabling its students to participate in Erasmus scholarships.

The decision stems from Modul University’s change in ownership in 2023 when a Hungarian foundation closely linked to the Orbán government acquired a 90% stake. This foundation, which also oversees the Matthias Corvinus Collegium (MCC), an institution heavily funded by the Hungarian government, has prompted the Commission to inform Erasmus programme agencies across Member States of the university’s ineligibility for EU financial support.

Change in Modul University Vienna’s ownership

Modul University Vienna has been embroiled in controversy over its eligibility for Erasmus funding following a change in ownership in 2023. The university is now controlled by a Hungarian “public interest trust,” chaired by Balázs Orbán, Political Director to Hungary’s Prime Minister, with other government affiliates playing key roles on its boards. This ownership structure places Modul University under the EU Council’s 2022 ban on funding for Hungary, which halted Erasmus grants to 21 Hungarian universities managed by similar state-run foundations. Despite protests from Budapest over the funding restrictions, the measure remains in force.