Hungary has not received EU cohesion funds for 161 days

According to reports, Hungary has not received any EU cohesion funds for 161 days. Of the EUR 21.8 billion allocated for the 2021-2027 budget cycle, only 8.3% has been disbursed so far. Ongoing conflicts between the Hungarian government and EU leadership have stopped further payments, while the country risks losing substantial funds due to unresolved legal and political issues.

Hungary’s 161 days without cohesion funds

Hungary has been excluded from receiving EU cohesion funds since 26 June 2024. The total funding allocated to Hungary under the 2021-2027 EU budget amounts to EUR 21.8 billion, which could exceed HUF 10,000 billion when combined with national co-financing, Index reports according to information from the Ministry of Public Administration and Regional Development. However, political disputes and legal penalties imposed by the EU have restricted Hungary’s access to 56% of this amount, leaving the country with only EUR 12.19 billion available.

orbán von der leyen european union — Photo: Facebook/Orbán Viktor

To date, Hungary has received EUR 1.8 billion, roughly 8.3% of its allocated funds, placing it ninth among EU countries in terms of received funding. Payments were halted following a 13 June ruling by the European Court of Justice, which fined Hungary EUR 200 million and imposed a daily penalty of EUR 1 million for failing to comply with EU asylum and return policies. This has already cost Hungary over EUR 370 million, with losses potentially exceeding EUR 1 billion by the end of the year unless the rule-of-law conditionality mechanism is resolved.

The prolonged funding freeze has exacerbated Hungary’s economic challenges. According to an interview with opposition Tisza Party leader Péter Magyar published by Bloomberg, unlocking EU funds could alleviate the economic crisis, with proposals for reforms including steering the country towards euro adoption.

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