Statement of FMO: Status on the suspension of the EEA and Norway Grants to Hungary

Payments to Hungary under the EEA and Norway Grants were suspended on 9 May 2014 following a Hungarian breach of the agreements concerning implementation and monitoring of the Grants schemes.

Before the decision to suspend the payments will be reviewed by the Donors, satisfying solutions to the following issues must be found in accordance with the applicable international agreements:

  1. Set-up of the National Focal Point;
  2. Continued use of the already established Implementing Agency;
  3. Respect for the roles and responsibilities under the Hungarian NGO programme operated by the Financial Mechanism Office (FMO). In particular, the on-going audit by the Government Control Office is to be cancelled immediately. Audit of the Hungarian NGO programme is the responsibility of the FMO.

The conditions were discussed at a high level meeting on June 12. As a follow-up, the Hungarian Government submitted a letter on 17 June. However, this letter did not respond to all the outstanding issues concerning the suspension of the Grants. This has been conveyed in a letter of 25th June 2014 from the FMO to the Hungarian Prime Minister’s Office.

The Hungarian Government has been asked to respond to all issues before the donors will continue the dialogue.

Letter to Prime Minister’s Office, 25 June 2014 (PDF)