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Hungary, EU agree to cut metro funding

EU and Hungarian officials, led by Budapest mayor Gábor Demszky in Brussels, agreed to remove HUF 43 billion related to questionable contracts from an application for funding for Budapest's new underground line in order to speed up a decision on the funding, the mayor’s office said in a statement.

The agreement will reduce the application for funding for the HUF 353 billion cost of the first phase of the underground line from HUF 224 billion to HUF 181 billion. A decision on the application is expected in the summer.

The questionable contracts were signed in 2004 and 2005, before the underground project became the recipient of EU funding. They are in line with Hungarian regulations, but fail to meet the letter of EU rules.

Hungary's co-financing requirement for the HUF 43 billion in funding was HUF 14 billion. (MTI – Econews)