Hungary and cohesion funds: Depriving Member States of EU funds must be the last resort.

"The Commission's decision sets a precedent, therefore it should act very carefully before turning to the tools of sanctions which can deprive regions of funds that are indispensable for their balanced development", said Lambert Van Nistelrooij, EPP Group Coordinator of the Regional Development Committee and Tamás Deutsch MEP, commenting on the European Commission's decision of last week regarding the possible freezing of Hungary's cohesion funds for 2013.

Last week, the European Commission proposed the possible suspension of EUR 495 million of EU funds for Hungary, as it estimates that the country's deficit target could be 0,25% higher than its 3% deficit target for 2013. This sum represents 0.5% of the country's GDP and 29% of Hungary's cohesion funds for 2013. This is the first time that the Commission has proposed suspending cohesion fund commitments to a Member State.

"The Hungarian EPP Government is acting responsibly and making significant efforts to reduce Hungary's budget deficit and public debt. As a result of these efforts, Hungary's budget deficit was 4,2% for 2010 - down from 7%, reached a surplus in 2011 and will be 2,8% of GDP this year, the 8th lowest within the EU. Taking into account this progress, this step from the Commission is unprecedented", said Tamás Deutsch, member of the Committee on Regional Development in the European Parliament.

"The country has made considerable sacrifices to consolidate its budget and the threat of sanctions will only help to strengthen feelings of euro scepticism and distrust of the European institutions in society", added Tamás Deutsch MEP.

"The Commission's decision sets a precedent; therefore it should act very carefully before turning to the tools of sanctions which can deprive regions of funds that are indispensable for their balanced development. These measures, if used, should only be used as a last resort", pointed out Lambert Van Nistelrooij, EPP Group Coordinator of the Committee on Regional Development in the European Parliament.