The European Commission on March 23 suspended the payment of funds related to projects from the 2007-2013 financing period. The EC temporarily halted payments for the projects in September 2015 and has now officially suspended money transfers, the source said.
According to the source, the EC will resume payment of funds if Hungary corrects the irregularities the EC has issues with and possibly accepts paying a fine.
The EC already sent Hungary a letter in September 2015 notifying it of the cancelation of payments and setting out the necessary changes but as Hungary has not taken sufficient steps in the last six months, the Commission has now taken additional measures, the source said.
If Hungary fulfils the conditions set out by the EC, then the Commission is ready to resume money transfers immediately, although the projects in question will now be more closely examined, the source added.
The EC has suspended or cancelled the payment of a total of €700 mln in development funds to Hungary and the €121 mln involved in the current EC decision is a portion of a larger amount.
Producing journalism that is worthy of the name is a costly business. For over 30 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.
