Around €7.5 billion could be withheld pending Hungary’s implementation of remedial measures agreed after months of talks between the EU and Hungarian authorities.

The sum represents the suspension of 65 per cent of the commitments for three operational programmes under cohesion policy.

Speaking on Sunday, Johannes Hahn, the commissioner in charge of budget and administration, said: “Today’s decision is a clear demonstration of the Commission’s resolve to protect the EU budget, and to use all tools at our disposal to ensure this important objective.”

The European Council now has one month to decide whether to adopt such measures, by qualified majority. This period could be extended by a maximum of further two months in exceptional circumstances.

Hungary has committed to fully inform the Commission about the fulfilment of the key implementation steps by 19 November 2022.