The European Commission has partially rejected Hungary’s request to unblock €545 million in frozen EU funds, offering only €163.5 million in advance payments. This decision comes amid ongoing tensions between Brussels and Budapest, with Hungary’s controversial actions under Prime Minister Viktor Orbán continuing to frustrate EU leaders.
What Happened
Hungary’s government proposed reallocating €545 million from university schemes to “strategic” industrial projects in an attempt to unlock the frozen funds. However, the European Commission has decided to release only €163.5 million as advance payments, with the possibility of the funds being clawed back if they are misused.
The EU has been withholding €18 billion in funds from Hungary due to violations of academic freedoms, minority rights, and other deficiencies. While Hungary’s proposal aimed to shift the focus of the funds to critical infrastructure and biotechnology, the Commission remains cautious, citing concerns over Hungary’s academic freedoms and the risk of the funds being diverted.
Escalating Tensions and EU Strategy
The decision comes amid mounting frustration from other EU member states, particularly in Northern Europe, over Orbán’s actions. Hungary’s repeated threats to veto key EU initiatives, such as tougher sanctions on Russian energy, Ukraine’s EU membership bid, and a €140 billion loan to Ukraine, have further strained relations with Brussels.
Leaders at the ongoing informal summit in Copenhagen are discussing reforms to move from unanimous voting to qualified majority voting, aiming to circumvent Orbán’s veto power on critical issues.
Commission’s Leverage
The European Commission has kept the majority of the €545 million frozen as a strategic move to exert pressure on Hungary. The Commission’s decision to release only a portion of the funds provides leverage to secure further concessions from Hungary on key issues, including the restoration of academic freedoms.
“The Commission considered that the horizontal enabling conditions can be fulfilled only if the universities run by so-called public interest trusts are clearly excluded from these new priorities,” said Commission spokesperson Maciej Berestecki.
The Path Forward
Despite the partial release of funds, the Commission remains firm in its position that Hungary must meet the EU’s requirements on academic freedoms and other conditions before additional funds are unlocked. Critics warn that Hungary may attempt to bypass these conditions by shifting funding to different policy areas in the future.
Closing Line:
This story may be updated with more information as it becomes available.
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