EU Funds Blocked for Hungary Amidst Political Tensions
Hungary faces suspension of EU funding as political disagreements escalate, leading to potential impacts on local development efforts.
The Hungarian government recently intensified its narrative regarding European Union (EU) funding amidst a backdrop of political tensions.
Initially, in a campaign launched on January 1, the government, led by Prime Minister Viktor Orbán, proclaimed positive developments regarding the inflow of EU funds.
However, statements made in April by Katalin Kollar, a member of the European Parliament from the Tisza Party, marked a significant shift in discourse.
Kollar noted that the ongoing rule of law procedures against Hungary had proven effective, resulting in the suspension of €21 billion in EU funding.
She further stated that the deteriorating living standards among Hungarians have bolstered opposition parties.
Following Kollar's remarks, government representatives shifted their focus from advocating for the unobstructed arrival of EU funds to highlighting their intentional blockage.
Janos Lazar, the Minister of Construction and Transportation, and Peter Takacs, the State Secretary responsible for health, emphasized in press conferences that the collaboration between the Tisza Party and Brussels was to blame for the impediments to accessing these developmental funds.
The suspension of funds is tied to rule of law conditionality procedures initiated by the European Council in 2022, which predates the establishment of the Tisza Party.
A significant portion of developmental funding has indeed been frozen due to non-compliance with regulations related to the Recovery and Resilience Facility (RRF) and horizontal enabling conditions.
Despite this, approximately €12 billion remains available to Hungary within the 2021-2027 programming period.
Payments for submitted proposals, primarily through the GINOP Plus and TOP Plus programs, have already reached substantial sums.
However, reports indicate that a considerable amount of funding earmarked for the TOP Plus initiatives is currently stalled in Hungarian bank accounts.
Although the European Commission has already allocated these funds, municipalities are unable to access them, reportedly due to the government's failure to issue relevant calls for proposals.
Initially, in a campaign launched on January 1, the government, led by Prime Minister Viktor Orbán, proclaimed positive developments regarding the inflow of EU funds.
However, statements made in April by Katalin Kollar, a member of the European Parliament from the Tisza Party, marked a significant shift in discourse.
Kollar noted that the ongoing rule of law procedures against Hungary had proven effective, resulting in the suspension of €21 billion in EU funding.
She further stated that the deteriorating living standards among Hungarians have bolstered opposition parties.
Following Kollar's remarks, government representatives shifted their focus from advocating for the unobstructed arrival of EU funds to highlighting their intentional blockage.
Janos Lazar, the Minister of Construction and Transportation, and Peter Takacs, the State Secretary responsible for health, emphasized in press conferences that the collaboration between the Tisza Party and Brussels was to blame for the impediments to accessing these developmental funds.
The suspension of funds is tied to rule of law conditionality procedures initiated by the European Council in 2022, which predates the establishment of the Tisza Party.
A significant portion of developmental funding has indeed been frozen due to non-compliance with regulations related to the Recovery and Resilience Facility (RRF) and horizontal enabling conditions.
Despite this, approximately €12 billion remains available to Hungary within the 2021-2027 programming period.
Payments for submitted proposals, primarily through the GINOP Plus and TOP Plus programs, have already reached substantial sums.
However, reports indicate that a considerable amount of funding earmarked for the TOP Plus initiatives is currently stalled in Hungarian bank accounts.
Although the European Commission has already allocated these funds, municipalities are unable to access them, reportedly due to the government's failure to issue relevant calls for proposals.
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