EC proposes 495 million euro fund freeze for Hungary
Forrás: MTI |
2012. február 22. szerda 16:00 |
The European Commission has proposed to freeze 495 million euros in cohesion funding in 2013 for Hungary over its failure to reduce an excessive budget deficit, the Commission said on Wednesday.
"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," the Commission said in a statement.
Hungary's government questioned the European Commission's legal grounds for imposing a funding freeze. A statement said that the EU's proposal to "impose a sanction because of an eventuality in the future" is not in line with the spirit of the EU's basic treaties.
"It is now for the Hungarian government to act before the suspension takes effect," European Commission Vice-President Olli Rehn said.
The amount the Commission proposes suspending is equivalent to 0.5 percent of gross domestic product (GDP) and 29 percent of the country's total Cohesion Fund allocations for 2013.
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