The EU is preparing to block funds from Slovakia – media

The European Commission has prepared a decision to launch a procedure to block funds for Slovakia due to the democratic defection of populist Prime Minister Robert Fico. Bloomberg reported this on Sunday, September 8.

It was noted that such a decision could be made due to Fico’s decision to remove the special prosecutor’s office handling some corruption cases related to EU funds, sources familiar with the matter at the agency said.

However, while the process is at an early stage, it will need the approval of commission head Ursula von der Leyen.

The publication states that almost 80% of all public investments in Slovakia are financed from EU funds. Any potential funding problem would be a major blow for the EU member state and the eurozone, which already faces problems with excessive public finance deficits.

One proposal is for the commission to use the so-called conditionality mechanism, which allows the EU to freeze funding when it sees its currency at risk. Thus, the EU will be able to maintain part of the 12.8 billion euros allocated to Slovakia in the bloc’s budget, sources told the publication.

The commission is also investigating the possibility of withdrawing all or part of the 2.7 billion euros in COVID grants Slovakia received as part of the EU’s pandemic rescue spending, one of the agency’s interlocutors said. The Special Prosecutor’s Office is a condition attached to the distribution of these funds.

If accepted, Slovakia would become the second country to come under the EU’s conditionality mechanism after the bloc froze 6.3 billion euros from Hungary’s solidarity funds due to Budapest’s violation of the rule of law.

Let’s recall that in July, Europe warned Slovakia against adopting a law on “foreign agents”, which would limit the activities of non-governmental organizations and the media.

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