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Approval For Hungary's COVID-19 Recovery Plan Withheld

EU COMMISSION

Politico is reporting that the European Commission is set to withhold its approval of Hungary's proposal for the disbursement of its COVID-19 recovery funds due to concerns regarding the effectiveness of anti-corruption efforts outlines in the plans.

  • Hungary is applying for EUR7.2bn of grants under the EU's recovery plan, with a deadline of Monday 12 July for the plan to be approved for funds to be disbursed on time.
  • Politico reports that according to its sources, the Hungarian plan fails on two aspects of its anti-corruption measures.
  • The refusal of approval comes at a time when the Hungarian gov't of PM Viktor Orban is under increasing pressure from EU institutions and some member states to withdraw a new law seen to be discriminatory to LGBT rights.
  • The plenary session of the European Parliament currently underway is attempting to pressure the European Council to launch full Article 7 proceedings against Hungary, which would limit the provision of EU funds to Budapest and withdraw Hungary's voting rights in EU institutions.

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