EU threatens to “disinvest” in Hungary

International Business News  –  According to comprehensive French media reports, on September 18, the European Commission proposed to freeze part of the funds that Hungary received from the “Cohesion Fund” channel, totaling 7.5 billion euros, equivalent to Hungary’s 2021-2027 The funds received from the EU are 20%. The funding is crucial for the Orban government amid the current devaluation of the Hungarian currency and rising inflation. Recently, the Hungarian Justice Minister visited the EU headquarters and related member states intensively, trying to persuade all parties to obtain all the funds as scheduled.

The EU has repeatedly pressured Hungary to implement rule of law and anti-corruption reforms. Under pressure, the Hungarian government proposed 17 reform measures, including the establishment of an independent agency to combat corruption and an anti-corruption working group with the participation of non-governmental organizations, and promised to put them in place by November 19.

Hungary is currently the only country that has not yet received 5.8 billion euros from the EU’s new crown epidemic recovery plan, which is also conditional on improving the rule of law. Comments believe that the EU’s threat to “withdraw funds” from Hungary is also a warning to Hungary not to use the veto at will.