European Fee threatens Hungary to freeze 7.5 billion euros in subsidies for failing to respect the rule of regulation

European Fee threatens Hungary to freeze 7.5 billion euros in subsidies for failing to respect the rule of regulation

The European Fee notably accuses Hungary of “irregularities” and “shortcomings” within the procedures for awarding public contracts. “There’s a very small variety of bidders in public procurement. In nearly two-thirds of the circumstances, there was just one bidder. Within the different international locations, it’s beneath 30%“explains the European Commissioner liable for the price range, Johannes Hahn. Added to this are conflicts of curiosity and inadequate management procedures.

The 7.5 billion euros more likely to be frozen represents a 3rd of the funds granted to Hungary between 2021 and 2027.”We have now criticized breaches of the rule of regulation. Which means the reply have to be extraordinarily respectful of the precept of proportionality” justified himself Johannes Hahn, EU Funds Commissioner.

Within the meantime, the €7.5 billion freeze should now be accepted by the Member States, by certified majority (15 Member States). They’ve one month to take action and a two-month extension is feasible.

The European Fee is relying on this extension. It appears to need to give Hungary time to implement its reforms. The nation promised to maintain the Fee knowledgeable of its efforts by November 19. The fee will then reassess the state of affairs and can ask the Member States, or not, to undertake its proposal to freeze a part of the European funds.

We must also word that Hungary is attempting to launch one other price range, that of the post-Covid restoration plan. It represents 5.8 billion in subsidies. Hungary is the one nation within the European Union which nonetheless doesn’t have the inexperienced gentle from the European Fee, all the time for a similar causes.

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