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EC seeks to reclaim HUF 10 bln in grants

The European Commission (EC) is looking to revoke HUF 10 billion in support funds from Hungary, the EC claims that the country has included as deductible expenses certain non-eligible items.

The affair involves the M43 motorway, where Hungary added the VAT content of the investment to the cost calculation base, which the EC said is against the rules. Hungary challenged the motion, and the related investigation is still in progress.

The daily Napi Gazdaság reported that for the time being the M43 is the only major EU-funded project that has sparked this type of controversy. Previously the EC did not raise objections, even though Hungary repeatedly included the VAT in the aggregate expenses of its infrastructural developments.

If the procedure ends favoring Hungary, the matter will probably be dropped; but if the EC is found to be right, Hungary could well be obliged to reimburse substantial amounts of this and other investments. (Napi Gazdaság)