EU budget proposal suspends $7.5B in funding to Hungary over corruption

Sept. 19 (UPI) -- The European Commission has announced it has proposed suspending $7.5 billion in funding to Hungary over concerns of corruption and the risks it imposes on the European Union's budget.

"Today's decision is a clear demonstration of the commission's resolve to protect the EU budget, and to use all tools at our disposal to ensure this important objective," Commissioner Johannes Hahn said in a statement.

Hungarian Prime Minister Viktor Orban, who has been in power since 2010, has clashed with Brussels throughout his tenure and tightened his control over the country's judiciary, media and academics.

"Hungary can no longer be considered a full democracy," the European Parliament said in a statement last week.

The European Parliament said that its inaction on Hungary had contributed to the emergence of a "hybrid regime of electoral autocracy" where elections occur but democratic standards are absent.

"MEPs remain concerned about several political areas concerning democracy and fundamental rights in Hungary," the parliament said.

It further highlighted "main areas" of concern including the functioning of Hungary's constitutional and electoral system, the independence of the judiciary, corruption and conflicts of interest and freedom of expression, including media pluralism.

"Academic freedom, freedom of religion, freedom of association, the right to equal treatment, including LGBTIQ rights, the rights of minorities, as well as those of migrants, asylum seekers and refugees, are also problematic," its statement said.

As far as the budgeting concerns, the European Commission began an "extensive dialogue" with Hungary in April.

Those concerns included "insufficiencies in addressing conflict of interest and concerns regarding public interest trusts" as well as "weaknesses in the effective pursuit of investigations and prosecutions in cases involving Union funds" and "shortcomings in the anti-corruption framework."

The European Commission in July warned Hungary of what budgetary protection members the 27-nation bloc, which Hungary joined in 2004, would propose.

"Over the summer, Hungary committed to 17 remedial measures to address the risks to the EU budget," Hahn said Sunday.

"With these measures, Hungary has made important and public commitments in the right direction. And I would like to explicitly welcome this constructive engagement (even if at a late stage), but what counts is indeed the results."

The European Commission proposal leaves open the possibility of Hungary receiving the funds and noted that it has one month to decide whether to adopt the measures by a qualified majority.

The move comes after Brussels in December 2020 adopted guidelines to protect the EU budget "in cases when breaches of the rule of law principles affect or seriously risk affecting its sound financial management."

It marks the first time the European Commission has applied the regulation measure.