Business & Economy

EU takes 1st step to freeze funds to Hungary

Brussels, Apr 27 (EFE).- The European Commission on Wednesday activated a procedure that could see EU funds allocated to Hungary suspended over deficiencies in the rule of law over Budapest’s processes of public procurement, corruption, fraud and lack of transparency.

Hungary has been notified of the procedure launched in the wake of its “constant failure” to resolve a series of “serious concerns” for over a decade, EU sources said.

It is the first time that the EC has made use of the regulation that conditions the release of European funds on respecting principles of the rule of law.

The process against Hungary was initiated due to flaws in the national public procurement system, especially in the role of the authorities that apply the European budget and a lack of transparency, accountability and adequate framework against corruption and fraud.

The procedure could last between five and nine months and lead to the suspension of recovery funds or the community budget for Hungary. EFE


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