Hungary has proposed resolving its dispute with the European Commission over access to Erasmus+ and Horizon Europe funds, which has left 21 universities excluded from the programs. However, it continues to refuse payment of €360 million in fines imposed by the European Court of Justice (ECJ) for violations of EU asylum laws.
The conflict with the Commission began in December 2022, when over 30 Hungarian institutions, including 21 universities, were denied access to EU funds due to concerns about conflicts of interest, academic freedom, and governance involving figures linked to the government. In response, Hungary’s National Assembly approved changes to laws governing public interest asset management foundations, which oversee many universities. These changes aim to prevent high-ranking politicians from joining management boards and enhance transparency.
Hungary plans to notify the Commission of these legal amendments in the coming days. This will initiate a review process to determine if the changes sufficiently address the Commission’s concerns and can lead to the reinstatement of funding. EU Justice Commissioner Didier Reynders indicated a resolution could be reached by year’s end, but emphasized that previous proposals from Hungary failed to address the risk of conflicts of interest.
The funding freeze is part of broader EU measures that have immobilized €6.3 billion in funds over corruption and rule-of-law concerns. Hungary is also unable to access most of its €10.4 billion EU recovery funds for similar reasons. A separate €11.7 billion package of cohesion funds has also been frozen.
Meanwhile, Hungary faces mounting fines from the ECJ over its asylum policies, which were deemed a severe breach of EU law. The court levied a €200 million lump-sum fine and €1 million in daily penalties until compliance is achieved. Since the ruling in June, the daily fines have accrued an additional €160 million. The Commission has begun deducting the lump-sum fine from Hungary’s allocated EU funds and may soon apply the same method for daily penalties.
Prime Minister Viktor Orbán has denounced the ECJ’s ruling as “outrageous and unacceptable,” accusing the court of judicial activism. Despite Orbán’s stance, the Commission insists Hungary must comply with the rulings and implement the necessary changes to halt the accumulating fines.
