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Free AccessVdL: Rule Of Law Proceedings Against Hungary Can Start, Risks EU Funds
Speaking to the plenary session of the European Parliament, European Commission President Ursula von der Leyen confirms that the the Commission has triggered the rule of law conditionality mechanismagainst the Hungarian gov't, saying that "[EU Budget] Commissioner Hahn has today spoken to the Hungarian authorities and informed them that we will now send the letter of formal notification to start the conditionality mechanism."
- With the triggering of the rule of law conditionality mechanism the EU now begins the process of determining whether structural and cohesion funding to Hungary will be cut as a result of the gov'ts lack of progress in tackling graft, and rule of law violations.
- The loss of EU funding would be a major fiscal blow to the newly re-elected gov't of Hungarian PM Viktor Orban. Behind Poland, Hungary is the second-largest net recipient of EU structural and cohesion funding.
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.