EU Court Confirms Ban on Funding for Six Hungarian Universities
The EU General Court rejected challenges from six Hungarian universities, upholding the EU Council's ban on budget funding for public-interest trusts linked to them.
The European Union’s General Court dismissed lawsuits filed by six Hungarian universities challenging a Council decision that bars EU budget support for public-interest asset-management foundations and entities they maintain. The universities argued the Council lacked authority and that they had not violated rule-of-law standards, but the court found the Council was exercising its budgetary powers, not its education remit.
It highlighted systemic breaches in Hungary’s handling of conflicts of interest, linking these to potential misuse of EU funds in programmes like Erasmus+ and Horizon Europe. The court noted that political influence could affect the selection of university projects, student beneficiaries and research grants. It concluded that the measure is financial, not academic, and therefore does not restrict academic freedom. The ruling reinforces the EU’s rule-of-law conditionality mechanism aimed at protecting the budget.
Why it matters
The decision confirms the EU can withhold funds from member states where rule-of-law breaches threaten the budget.
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