Hungary stands to losing nearly €1 billion in EU funding following this week’s decision by the European Commission concerning Hungarian universities. Brussels has stated that the Hungarian government’s amendment to the law fails to sufficiently address conflict-of-interest risks in the boards of trustees governing public-interest trusts, which the Commission deems irregular. As a result, the 21 Hungarian universities that have undergone a model change will remain excluded from the EU’s Erasmus+ and Horizon programmes.
‘Brussels has placed new obstacles in the path of Hungarian students and researchers participating in the Erasmus and Horizon programmes, and continues to politically hold Hungarian young people hostage’ said Balázs Hankó, Hungarian Minister for Culture and Innovation, in response to the Commission’s decision.
He noted that a proposal addressing the conflict of interest and introducing a fixed term—the so-called cooling-off period—for members of the boards of trustees was submitted last November. However, Brussels declined to negotiate for more than a year. Frustrated with the delay, the Hungarian parliament passed a bill that the Commission began reviewing in early December. On Monday, the Commission issued written comments and concerns regarding the proposal.
‘With today’s decision, the Commission found that the legislative amendments do not adequately address the outstanding concerns on conflicts of interests in the boards of public interest trusts. On that basis, the Commission concluded that the measure on public interests trusts and entities maintained by them should remain in place,’ the Commission’s Monday resolution stated.
‘The issue of public interest trusts is part of the conditionality procedure, under which Hungary must fulfil 17 conditions to access €6.3 billion’
Back in January 2023, the European Commission froze funds for foreign exchange programmes at universities and research institutes managed by public interest trusts. This action was taken because the presence of active politicians on university boards of trustees was considered problematic, and the length of their mandates was not clearly defined. Since then, active politicians have stepped down from the boards of trustees, but the EU maintains that the Hungarian government has yet to meet the required conditions for the universities to be eligible for participation in the exchange programmes.
The issue of public interest trusts is part of the conditionality procedure, under which Hungary must fulfil 17 conditions to access €6.3 billion from the cohesion funds. For more details on the funds still being withheld by Brussels, see here.
In response to the Commissions’ decision, Hankó accused Brussels of deliberately discriminating against Hungarian academics and citizens. He also criticized the Commission for making its proposals without submitting them to a political decision-making forum. According to the minister, Brussels continues to expand the list of conditions Hungary must meet, consistently placing new obstacles in the path of Hungarian students.
In response to the exclusion from the Erasmus+ and Horizon programmes, the Hungarian government has introduced the Pannonia Scholarship and the HU-rizont programme. Balázs Hankó highlighted the undeniable success of these initiatives, citing collaborations with prestigious institutions such as Stanford, Cambridge, and the University of Singapore. ‘We are advancing with the successful Hungarian model and will not accept the stealth dictatorship imposed by Brussels,’ Hankó emphasized.
Academia Strikes Back
Following the European Commission’s decision, six Hungarian universities—Semmelweis University, Óbuda University, the University of Debrecen, the University of Veterinary Medicine, the University of Miskolc, and the University of Dunaújváros—issued a statement to Brussels. In the document they stress that the Commission appears unwilling to engage in a dialogue, dismissing arguments made over the past two years that the model change has not compromised university autonomy.
‘The government is advancing with the successful Hungarian model and will not accept the stealth dictatorship imposed by Brussels’
‘We are convinced that the rule of law concerns raised by the European Commission and the Council against the Hungarian government cannot legitimately serve as a pretext for interfering with the integrity of Hungarian universities or for severely penalizing researchers and students,’ the statement declared.
The universities also criticized the lack of opportunity for university management, researchers, or students to voice their perspectives on the impact of the ongoing debate. ‘The Commission seeks to interfere in university autonomy and overrule university decisions on spurious grounds,’ the statement asserted.
The six universities are now pursuing legal remedies for what they consider discriminatory treatment of their students and researchers at the EU level. The Hungarian Fundamental Rights Commissioner’s Office has also reached out to European Ombudsman Emily O’Reilly, requesting an investigation into the exclusion of Hungarian students and researchers from the Erasmus+ and Horizon programmes.
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