Of the 6.3 billion euros of funds frozen by Brussels due to complaints about the rule of law in Hungary, the country will permanently lose 1.04 billion.
From January 1, 2025, Hungary will permanently lose access to more than 1 billion euros in funding from the European Union. It was reported by the Financial Times.
In total, of the 6.3 billion euros of funds frozen due to the rule of law claim, the country will lose 1.04 billion euros. These funds were supposed to be disbursed by the end of 2024, but due to failure to meet the conditions, the funding will be stopped forever.
The economic situation is worsening in Hungary, with the budget deficit exceeding 4.5% of GDP and the economy in a technical recession after contracting by 0.7% in the third quarter of 2024.
In addition, Hungary loses 1 million euros per day due to violations of the rules for the treatment of asylum seekers. By the end of the year, these losses will reach 200 million euros, not counting the fine of the European Court of 200 million euros imposed for ignoring asylum decisions.
Due to a lack of funding, the country has abandoned several infrastructure projects, including a rail link between central Budapest and the airport.
At the same time, the Hungarian government accuses the EU of political pressure. EU Affairs Minister Janos Boka said the financial restrictions were “hard not to be perceived as discriminatory.”
Prime Minister Viktor Orban is trying to make up for the losses by attracting investment from China and other Asian countries, but experts doubt their ability to replace European funding.
In the past, the European Court decided to deduct 200 million euros from Hungary’s budget payments.
The EU wants to kick Hungary out of the Schengen area
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.