EC draft budget cuts cohesion allocation to Hungary by 20%

EU

The European Commission is allocating cohesion funds of EUR 17.9 billion to Hungary at 2018 prices in its EU budget proposal for the period 2021-2027, about 20% less than in the previous budgetary period, the proposal published in Brussels on Tuesday shows.   

The draft budget still needs approval from the European Council and the European Parliament, noted Hungarian news agency MTI.

Under the Commissionʼs proposal presented in early May, the European Unionʼs next seven-year budget would allow for commitments worth a combined EUR 1.135 trillion at 2018 prices. Some EUR 373 bln of the total is planned to be spent on narrowing the gaps between and within member states, which is less than the amount allocated for cohesion policy in the 2014-2020 period.

As the BBJ reported in late April, the Commissionʼs draft 2021-2027 budget is designed to shift EU cohesion funding away from Central and Eastern Europe to countries hit harder by the financial crisis, while shifting the criteria away from GDP per capita towards core EU values.

In May, the Commission unveiled a proposed mechanism to protect the EU budget from financial risks linked to "deficiencies regarding the rule of law" in member states. The mechanism would allow the EU to "suspend, reduce or restrict access" to EU funding "in a manner proportionate to the nature, gravity and scope of the rule of law deficiencies."

The proposal is seen as a way to sanction EU members, including Poland and Hungary, two countries which the EU has investigated in recent years for curbing the judiciaryʼs independence.

ADVERTISEMENT

Almost half of Hungarians get fringe benefits, survey shows Analysis

Almost half of Hungarians get fringe benefits, survey shows

19,000 young jobseekers hired in expanded subsidy program Government

19,000 young jobseekers hired in expanded subsidy program

Manager screenings - not just for managers Interview

Manager screenings - not just for managers

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.