EU weighs halting Slovakia funds

The European Union is working on a proposal to censure Slovakia over the erosion of democratic norms in a move that could result in the bloc withholding funds earmarked for Bratislava.

The European Commission, the bloc’s executive arm, has prepared a decision to trigger the procedure over Prime Minister Robert Fico’s recent move, Caliber.Az informs via foreign media.

This decision involves the abolition of the special prosecutor’s office, which was responsible for overseeing corruption cases involving EU funds.

About 80 per cent of all public investments in Slovakia are financed by EU funds. Any potential issues with funding would represent a serious blow to this EU and eurozone member state, which is already facing challenges with an excessive deficit in public finances.

The commission is also exploring the option of clawing back all or part of the €2.7 billion ($2.99 billion) in Covid grants Slovakia has received as part of the EU’s pandemic rescue spending. The special prosecutor’s office was a condition included in doling out those funds.

The process is in an initial phase and would require the approval of Commission President Ursula von der Leyen.