Hungary hits at Brussels funds threat

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Series Title
Series Details 23.2.12
Publication Date 23/02/2012
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The European Commission proposed on the 22 February 2012 to suspend €495m of Cohesion Fund commitments taking effect on 1 January 2013, representing 0.5 % of GDP and 29% of the country's cohesion fund allocations for 2013.

This unprecedented step follows the Commission's repeated warnings to Hungary urging it to step up its efforts to end the country's excessive government deficit, and its subsequent failure to take appropriate action.

On 11 January 2012 the European Commission concluded, as part of the Excessive Deficit Procedure (EDP), that Hungary had not taken effective action to bring its deficit to below the target of 3% of GDP by 2011 in a sustainable and credible manner.

Hungary condemned the move as 'unfounded and unfair'. Budapest feels it was being unfairly singled out by the Commission, perhaps because the budget fight cames on top of a wide-ranging argument between Hungary and the European Commission over a new constitution adopted in 2011.

Related Links
European Commission: Memo/12/127: Statement by Vice President Rehn on Hungary
European Commission: Memo/12/126: Statement by Commissioner Hahn on Hungary
European Commission: RAPID: Press Release, IP/12/161: Commission proposes to suspend €495 million of Cohesion Fund for Hungary for 2013 for failure to address excessive deficit
EurActiv, 23.2.12: EU to cut Hungary’s regional funds over deficit
EUObserver, 23.2.12: EU to freeze millions for Hungary over deficit
BBC News, 22.2.12: EU plans to freeze Hungary funds over budget deficit
ESO: Background information: Orbán reprimanded by EU over budget
EUObsever, 13.3.12: Heckles on 'double standards' as EU freezes Hungary's money
Council of the European Union: 2012/156/EU: Council Implementing Decision of 13 March 2012 suspending commitments from the Cohesion Fund for Hungary with effect from 1 January 2013

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