Council suspends €495,2 Mio. in Cohesion Funds for Hungary

The Council adopted a decision suspending EUR 495.2 million in scheduled commitments for Hungary under the EU's cohesion fund, taking effect as of 1 January 2013. It also issued a recommendation under the EU's excessive deficit procedure, setting 2012 as the target year for correction of Hungary's deficit. Adoption of these measures follows a decision taken in January3 deeming action taken to correct its excessive deficit to be insufficient.

EC proposes to suspend €495 million of Cohesion Fund for Hungary for 2013 for failure to address excessive deficit

Brussels, 22 February 2012 - The European Commission has proposed to suspend EUR 495 184 000 of Cohesion Fund commitments taking effect on 1 January 2013, representing 0.5 % of GDP and 29% of the country's cohesion fund allocations for 2013. This unprecedented step follows the Commission's repeated warnings to Hungary urging it to step up its efforts to end the country's excessive government deficit, and its subsequent failure to take appropriate action. On 11 January this year, the European Commission concluded, as part of the Excessive Deficit Procedure (EDP), that Hungary had not taken effective action to bring its deficit to below the target of 3% of GDP by 2011 in a sustainable and credible manner (see IP/12/12and MEMO/12/7). The European Commission therefore proposed to step up the Procedure. This recommendation was endorsed by the Council of Ministers on 24 January, paving the way for a suspension of part of the Cohesion Fund commitments for Hungary.


Subscribe to RSS - Hungary