EU proposes suspending billions in funds to Hungary over democracy concerns

The European Union’s executive branch recommends 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, says it is 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 says 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. 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.