EU proposes to suspend billions in funds to Hungary

BRUSSELS (AP) — The European Union’s executive branch recommended Sunday that the bloc suspend around 7.5 billion euros (dollars) in funding to Hungary over concerns about democratic backsliding and the possible mismanagement of EU money.

The European Commission, which proposes the bloc's laws and ensures that they are respected, said it was acting “to ensure the protection of the EU budget and the financial interests of the EU against breaches of the principles of the rule of law in Hungary.”

EU Budget Commissioner Johannes Hahn said that despite measures Hungary has proposed to address the deficiencies, the commission is recommending the suspension of funds “amounting to an estimated amount of 7.5 billion euros.”

The money would come from “cohesion funds” granted to Hungary. This envelope of money, one of the biggest slices of the bloc's budget, helps countries to bring their economies and infrastructure up to EU standards.

EU countries pay around 1% of their gross national income into the budget. Hungary is slated to receive at least 50 billion euros in all from the 2021-27 budget, according to commission estimates.

Any action to suspend the funds must be approved by the EU member countries, and this requires a “qualified majority,” which amounts to 55% of the 27 members representing at least 65% of the total EU population.

They have one month to decide whether to freeze Hungary's funds, but can in exceptional circumstances extend that period to two months. The commission is recommending that the member countries take until Nov. 19 to allow Hungary more time to address the concerns.

The commission has for nearly a decade accused Hungarian Prime Minister Viktor Orban of dismantling democratic institutions, taking control of the media and infringing on minority...