$tarving Hungary

EU panel cites ‘democratic backsliding’

The European Union’s executive branch recommended Sunday that the bloc suspend about $7.5 billion in funding to Hungary over concerns about democratic backsliding and possible mismanagement of EU money.

The European Commission, which proposes the bloc’s laws and ensures that they are respected, said it was acting “to ensure the protection of the EU budget and the financial interests of the EU against breaches of the principles of the rule of law in Hungary.”

EU Budget Commissioner Johannes Hahn said that despite measures Hungary proposed to address the deficiencies, the commission recommends the funds suspension.

The money would come from “cohesion funds” granted to Hungary. This money helps countries to bring their economies and infrastructure up to EU standards.

EU countries pay about 1% of their gross national income into the budget. Hungary is set to receive at least $50 billion in all from the 2021-27 budget, according to commission estimates. EU member countries must approve any action to suspend the funds and this requires a “qualified majority,” 55% of the 27 members representing at least 65% of the total EU population.

They have one month to decide whether to freeze Hungary’s funds, but can in some circumstances extend that to two months. The commission recommends the member countries take until Nov. 19 to give Hungary more time to address the concerns.

The commission has for nearly a decade accused Hungarian Prime Minister Viktor Orban of dismantling democratic institutions, taking control of the media and infringing on minority rights. Orban denies the accusations.