Rudolph Angler Hungary has proposed a resolution to its dispute with the European Commission over access to Erasmus+ and Horizon Europe funding, which has left 21 universities excluded from the programs. Simultaneously, the country continues to resist paying €360 million in fines imposed by the European Court of Justice (ECJ) for breaches of EU asylum law.
The funding dispute stems from a 2022 decision by the Commission to bar over 30 Hungarian institutions from Erasmus and Horizon programs. The exclusion was due to concerns over academic freedom, transparency, and conflicts of interest arising from government-linked figures serving on the management boards of these institutions.
In response, Hungary’s National Assembly has passed an amendment to the law regulating “kekva” foundations, specialized trust funds that oversee public institutions such as universities. The amendment seeks to prevent high-level politicians from serving on management boards and ensure proper conflict-of-interest declarations. Hungary plans to notify the European Commission of the changes soon, said János Bóka, Hungary’s EU affairs minister.
The notification will trigger the Commission’s review to determine whether the amended legislation sufficiently addresses their concerns. Justice Commissioner Didier Reynders expressed optimism about finding a resolution before year-end, though he emphasized the need for robust assurances from Hungary.
The Erasmus and Horizon exclusions are part of a broader conditionality mechanism freezing €6.3 billion in EU funds over systemic issues with public procurement and corruption in Hungary. In total, €11.7 billion in cohesion funds and €10.4 billion in recovery funds remain inaccessible to the country due to persistent rule-of-law violations.
Meanwhile, Hungary faces mounting financial penalties following an ECJ ruling that deemed its asylum laws a grave breach of EU principles. The court imposed a €200 million lump sum fine and a daily penalty of €1 million for non-compliance, which has now accumulated to €160 million. The Commission has begun deducting the initial fine from Hungary’s EU fund allocations and may take similar measures for the daily penalties if the ruling remains unheeded.
Prime Minister Viktor Orbán has denounced the ECJ’s decision as “outrageous” and a result of “judicial activism.” Talks between Brussels and Budapest continue, but compliance with the ruling remains necessary to halt the growing daily fines.