(Bloomberg) -- The European Commission may suspend some of the EU funds allocated to Hungary since the country has failed to put into law measures meant to fight corruption and bolster the rule of law, according to people familiar with the discussions.

The commission, the European Union’s executive arm, sees Hungary having made significant progress addressing the bloc’s concerns, but some issues remain outstanding, said the people, who asked not to be identified because the deliberations are private. 

A final decision on suspending the so-called cohesion funds would be made by EU member states next month. 

Prime Minister Viktor Orban’s government had agreed on 17 measures to roll back widespread graft, which prompted the EU executive to initially recommend suspending €7.5 billion ($7.8 billion) of Hungary’s funding. 

The commission is leaning toward a recommendation to block the full amount, according to another person familiar with the deliberations. The German newspaper Frankfurter Allgemeine Zeitung reported that possible recommendation earlier Wednesday. 

Hungary notified the commission on Nov. 19 that it had fulfilled all its pledges to address corruption, Justice Ministry spokesman Jozsef Gyorgy Horvath said in an emailed statement Wednesday. 

Hungary is also in the final stages of receiving approval of its Covid-era recovery plan that would unlock as much as €5.8 billion ($6 billion) before a year-end deadline. 



(Updates with likely suspension in the fifth paragraph.)

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