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European Commission Letter to Hungary Explains How the Country Harms the EU Budget

The letter that that European Commission sent to Hungary on launching the conditionality mechanism has been leaked to, writes Telex. The 44-page letter mostly provides details on public procurement issues, and explains how they harm the EU budget and the rule of law.

The letter finds systemic violations in the distribution of cohesion fund money, referring to an investigation by EU anti-fraud office OLAF into 35 public lighting tenders that were won by a former company of István Tiborcz, the Prime Minister’s son-in-law. In the end, the Hungarian state decided to pay for these projects out of its own budget instead of repaying the aid to the European Commission.

Other concerns listed in the letter are serious problems with conflicts of interest, and the fact that around a fifth of EU funding has been granted to a small group of people since 2010.

However, there are no references to the Hungarian family protection law or anti-LGBTQ measures in the letter, which the Hungarian government has claimed is the real reason for launching the mechanism. [Telex]

Posted in European Union

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  1. 2bits4free

    There was the Sargentini report.
    Then there was the Kim Scheppele report. And what happened? Nothing.
    So the EU has sent a reprimand,once again, to Orban`s criminal fraternity. And orban will do what he always does, which is to not bother replying.
    Then the EU will sit back and declare they`ve done their job, and then sit back for at least another year before sending yet another letter after some more meetings.
    Pardon my cynicism but I can hear Orban laughing all the way to the bank with the latest funds, meant for refugee relief. He will no doubt set up more phony offices for his family and his friends and purchase some more private properties with the refugee money.
    Why hasn’t the EU sent auditors here to monitor how EU funds are used in this kleptocracy.

    • Steven

      Well, if this entire process go through to the end, we could see a substantial cut in EU money going to Hungary. It is slow though – expected to take 6-9 months at least.

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