Why Switzerland still subsidises Hungary
22 January 2025
The EU recently froze EU funding for Hungary over concerns about violations of the rule of law. While Switzerland shares these concerns, it has decided to continue paying the money it agreed to pay to Hungary.
It isn't unusual for Swiss foreign policy to differ from the EU's. Switzerland's principle of neutrality shapes how Bern manages the country's relationships with other nations. In the case of Hungary, the Swiss foreign ministry has noted that Switzerland's quality requirements have so far been met in implementation, hence the decision to continue the payments.
You may wonder: why does Switzerland even give money to Hungary? Since 2007, Switzerland has been paying out "cohesion contributions" (also referred to as "enlargement contributions") to selected EU member states. These contributions are voluntary and are not part of any Swiss-EU bilateral agreements.
 | Donovan Frei For Switzerland, it's a way to help reduce economic and social disparities in newer EU member states and contribute to European stability. But the sums aren't particularly massive. For example, Bern has pledged CHF 60 million (€63 million) to assist Greece and Italy in implementing migration-related projects like accelerating asylum procedures and improving reception facilities between 2022 and 2029. In the case of Hungary, a little under CHF 90 million will primarily be allocated to water and wastewater management, health and social protection, and financing for small and medium-sized enterprises. |
Welcome to The European Correspondent
Europe lacks true European media: in Germany alone, there are more media devoted exclusively to football than news outlets specialising on Europe. The established players mainly focus on Brussels and European institutions. The European Correspondent aims to change that. We cover the whole of Europe and write for a community of citizens who want to look beyond their own national borders. Without European journalism, there is no European civil society.
〉Read our manifesto
〉The stories we would like to write for you
Become a donor!
The European Correspondent is fully funded by its readers. We can only produce the newsletter with your support - and work towards the bigger project: building true European media. Donate now!
With your help, we can create true European journalism. Thank you!
We are non-profit. Every donated € goes directly into The European Correspondent.