The European Commission on Sunday proposed to member states to suspend the payment of about 7.5 billion euros in European funding to Hungary, due to the high risks associated with corruption in the country, but it gave Budapest a few weeks to implement reforms.
On Sunday, the European Union recommended suspending 7.5 billion euros in aid to Hungary, over fears of mismanagement of funding.
Johannes Hahn, the EU's budget commissioner, said that despite Hungary's proposed measures to address European concerns, the commission had recommended suspending 7.5 billion euros in aid, according to the Associated Press.
The European official added that the money granted to Hungary comes within the "integration funds" intended to help EU countries raise their economies and infrastructure to the level of EU standards.
Speaking at a meeting of EU commissioners in the Belgian capital, Brussels, Hahn said the commission had "serious concerns about the disclosure of a conflict of interest" regarding European funding to Hungary.
He cited other concerns about Budapest's management of a number of public trust funds, particularly in the field of education, according to the agency.
The European commissioner said Hungary had "until 19 November to address the EU's concerns."
The measure to suspend the funds requires the approval of 55 percent of the 27 countries in the European Union.
Hungarian media reported that Prime Minister Viktor Orban's government will announce new legislation on these concerns tomorrow, Monday.
Hahn welcomed Hungary's intention to fix aid management problems, saying the proposed remedial measures were "going in the right direction."
He added that the measures "could address some concerns, if they are followed up and acted upon properly."
European concerns about Hungarian aid center around public procurement of goods and services and the implementation of projects using EU funds.
Union officials estimate that about half of public tenders in Hungary are awarded after submitting "only one bid," according to the agency.
For nearly a decade, the European Commission has accused Prime Minister Orban of dismantling democratic institutions, controlling the media and violating the rights of minorities, while Orbán denies these accusations.
Hungary is the only country in the European Union whose plan has not been approved by the European Commission, on the same grounds related to respect for the rule of law.
If no agreement is reached on the Hungarian recovery plan by the end of the year, Hungary will lose 70% of European aid.
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