THE European Union’s executive branch recommended that the bloc suspend around €7.5 billion (£6.5bn) in funding to Hungary today over concerns about democratic backsliding and the possible mismanagement of EU money.

The European Commission, which proposes the bloc’s laws and ensures that they are respected, said it was acting “to ensure the protection of the EU budget and the financial interests of the EU against breaches of the principles of the rule of law in Hungary.”

EU Budget Commissioner Johannes Hahn said that despite measures Hungary has proposed to address the deficiencies, the commission is recommending the suspension of funds.

The money would come from “cohesion funds” granted to Hungary. This envelope of money, one of the biggest slices of the bloc’s budget, helps countries to bring their economies and infrastructure up to EU standards.

EU countries pay around 1 per cent of their gross national income into the budget.

Hungary is slated to receive at least €50bn (£43bn) in all from the 2021-27 budget, according to commission estimates.

Any action to suspend the funds must be approved by the EU member countries, and this requires a “qualified majority,” which amounts to 55 per cent of the 27 members representing at least 65 per cent of the total EU population.

They have one month to decide whether to freeze Hungary’s funds, but can in exceptional circumstances extend that period to two months.

The commission is recommending that the member countries take until November 19 to allow Hungary more time to address the concerns.