Budapest relents in tug-of-war with Brussels over Erasmus+ and Horizon Europe programs

Brussels – Hungary yields to the European Union on the Erasmus+ and Horizon Europe programs. It decides to accept Brussels’ conditions and change regulations on the functioning of management foundation boards, which had led the European Commission to exclude Hungarians from cultural programs.

Through a note from the Hungarian Ministry of Culture and Innovation published today (Sept. 1), the ministry confirms that a draft law wants to amend the law subject to challenge by the EU. Also simultaneous is the criticism of the EU: “Despite the government’s openness and initiatives, Brussels has been unwilling to act for almost a year,” since this draft was supposedly submitted in November 2023 but never considered by the Commission.

The key points of the proposal are aimed at resolving all the issues that have led “to the Hungarian students’ discrimination“, excluded from the Erasmus+ and Horizon programs. It would amend rules related to conflict of interest for the kekva, the Hungarian abbreviation for public interest asset management foundations, which perform public functions such as university management.

Hungary seems willing to come to terms, albeit contentiously, with the European Commission and its demands for transparency and anti-corruption. Clearly, this is being done with defined stakes: “The proposals that Brussels wanted to implement by excluding Hungarian rectors and professors from the board and appointing foreign NGOs as board members will not be accepted.” The communiqué is clear: a willingness to amend the Hungarian law exists, albeit with some misgivings about the timing, but on Hungarian terms.

“It is clear to us that we must put an end to the exclusion of Hungarian universities from the Erasmus and Horizon programs since, due to this unfair decision, university students are not benefiting from what is their basic right as citizens of the European Union,” stressed Veronika Varga-Bajusz, Secretary of State in charge of higher education, vocational, and adult education, and youth.

The proposal submitted by the Hungarian government, as reported by the Hungarian newspaper 24.hu, defines who cannot be a member of a board of trustees or supervisory board of university foundations, such as members of parliament, mayors or secretaries of state, and other professional figures listed in the rule change.

In September 2023, Hungary finally succumbed to EU pressure, announcing that Orban government ministers would resign from the boards of the kekva. To understand the impact of the presence of Fidesz politicians in Hungarian academia, it must be considered that the foundations deal with the management of public grants, university life, and assets, but more importantly, that the appointment of commissioners has (so far) no expiration date. It should be noted that, over time, 34 universities were ceded by the state to the kekva, in which many of the prominent members were personalities close to Prime Minister Orban.

Hungary excluded from funds

Privatising universities, which involved using trust funds managed indirectly by the government through trusted members, became impossible for the Commission to ignore. The decision to freeze funding aimed at universities for research and student exchanges was a blow to Hungarian student institutions. As mentioned earlier, the executive had succumbed to pressure from the European Commission to correct the course with ministers’ resignation. Still, until now, the possibility of changing the law has never been concretely put on the table.

Hungary was sanctioned in December 2022, with the suspension of 55 per cent of cohesion funds, on charges of repeatedly violating the rule of law, failing to carry out justice reform, and fighting corruption properly. The 17 corrective measures presented were not adequate and sufficient to address the country’s serious shortcomings. The exclusion from education programs only came later to sharpen the European wall concerning Hungarian non-compliance with the rules.

The European Union has not yet commented on Hungary’s decision to change its legislation, but changes are expected that could resolve an impasse that has affected Hungary for nearly two years.