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EU funding to Hungary temporarily suspended

Staff writer ▼ | August 16, 2013
European Union (EU) funding to Hungary has been temporarily suspended over failings in the country's financial control systems. However, there was no evidence of fraud, a European Commission official said.
EU Hungary
EU HungaryEuropean Union (EU) funding to Hungary has been temporarily suspended over failings in the country's financial control systems. However, there was no evidence of fraud, a European Commission official said.


Hungarian Prime Minister Viktor Orban's office said the European Union had suspended 13 of 15 programmes funded with EU money, including projects such as road building and social cohesion programmes. Budapest has said it would be ready to accept an EU fine of between 50 and 100 billion forints (167-334 million euros) to regain access to the money which is vital for the central European country's economy.

A Commission official said the funds had been frozen because of deficiencies in Hungary's financial management and control systems for the programmes in question, identified in an EU audit in 2012.

"There are currently no indications of corruption or fraud, but rather this is a systemic problem relating to the controls not working properly," said the official, who spoke on condition of anonymity.

While Hungary may be forced to pay a sanction to restart the funds, the official said it was too early to say whether this would happen and, if so, how much the fine would be.


 

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