fb-pixel Skip to main content

EU plans sanctions against Hungary over deficit

BRUSSELS - The European Union’s executive arm said yesterday that it plans to withhold $655 million in EU development funds from Hungary after the country failed to reduce its deficit.

The proposal to withhold the funds is the latest in a protracted dispute over the country’s finances and suspected violation of civil rights. Before it can be applied, it has to be endorsed by the other 26 member states.

It is the first time the European Commission has proposed to suspend development funds from one of its members over an excessive deficit.