The Government is creating a reserve in next year’s budget for the payment of a possible EU penalty that may be imposed on account of irregularities connected to the construction of metro line 4, Magyar Közlöny (Hungarian Gazette) reports.

The Government Resolution released on Friday states that according to the findings of the European Anti-Fraud Office (OLAF) one third of the total budget of the metro line 4 project, some HUF 166 billion, was stolen and embezzled. Due to these findings, Hungary will be required to repay the European Union some HUF 59 billion as expected.

“The responsibility of the Medgyessy, Gyurcsány and Bajnai governments and of the metropolitan leadership under Gábor Demszky clearly emerges on the basis of the closing report of the European Anti-Fraud Office regarding the biggest corruption scandal of the period that has elapsed since the fall of communism.” The government believes that this may be the most significant abuse of EU funds since the end of communism.

Due to the possible repayment of funds, the Minister for National Economy will be required to create a reserve in next year’s budget by March. In doing so, the Minister will have to ensure that this payment liability should not detrimentally affect educational, social, health care and family policy resources which are a particular priority for Hungarian citizens.

(kormany.hu/MTI)