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Hungary obliged to pay back nearly EUR 12 mln in EU funds

The Court of Justice of the European Union (CJEU) on Tuesday rejected Hungaryʼs lawsuit against the European Commission (EC) for withdrawing EUR 11.7 million in EU support for restructuring the local sugar industry. Hungary will have to pay back the EU money after the court confirmed irregularities. 

Earlier, the EC ordered a fiscal correction of EUR 11.7 mln, which was challenged by Hungary, recalled current affairs website hvg.hu. Under EU regulations on sugar industry restructuring, companies eligible for the grant should have dismantled all of their production facilities. Sugar factories in Kaba (207 km east of Budapest) and Petőháza (186 km west of the capital) failed to fulfil these rules, keeping their old silos.

The General Court of the European Union rejected the claim of Hungary, finding that it had failed to take immediate action to remedy the identified irregularities, hvg.hu reported.