EU Holds Firm on Hungary's Funding Due to Trust Reforms

The European Union will continue to impose budgetary restrictions on Hungary due to inadequate reforms regarding conflicts of interest in public interest trusts. Until Hungary addresses these rule of law concerns, 55% of funding for three cohesion policy programs will be suspended, along with a prohibition on EU commitments with public interest trusts.

The European Union announced its decision to maintain strict budget restrictions on Hungary, citing the country's insufficient reforms in managing conflicts of interest within public interest trusts.

The EU emphasized that legislative changes put forward by Hungary have not effectively addressed the issues concerning conflicts of interest in public interest trust boards.

As a result, a suspension on 55% of funding for three cohesion policy programs remains in place, alongside a ban on EU commitments with such trusts, until Hungary fully resolves its rule of law issues.

(With inputs from agencies.)