EU Stops Erasmus Funding for Modul University in Vienna
The EU Commission has decided to withdraw funding from the Erasmus exchange program at Modul Private University in Vienna. The reason for this is the ownership structure of the university: 90 percent of it is owned by a Hungarian foundation, which is subordinate to the Mathias Corvinus Collegium (MCC) think tank. This is seen as a cadre factory of the Hungarian government under Viktor Orbán.

The Modul University, which specializes in tourism subjects, was taken over by the MCC in 2023. This foundation is considered close to the government and is financed by Viktor Orbán's government, as reported by DerStandard. The Chairman of the Foundation Board, Balázs Orbán, acts as a close advisor to the Prime Minister. This means that the university falls under the EU sanctions against Hungary, which were decided in 2022. These sanctions, which include the freezing of billions of euros, are intended to prevent violations of the rule of law and corruption.
According to a response to a parliamentary question, the Agency for Education and Internationalization (OeAD) reacted to this development as early as 2023 by no longer approving new Erasmus applications from the Modul University. “The Modul University cannot receive EU funding,” explained the EU Commission. This decision is based on the Council Decision of December 2022, which prohibits financial support for organizations linked to the Hungarian government.
Reaction of the university
The Modul University reacted to the decision with incomprehension. “The measure is in no way justified,” it said in a statement. However, the university promised to support affected students financially and offer them alternative funding. It will also consider legal steps to challenge the EU Commission's decision. The university management emphasized that international student mobility remains a priority. Erasmus remains symbolic
The Erasmus program stands for cross-border cooperation and supports around one million students, teachers, and trainees throughout Europe every year. In the current EU budget, 26 billion euros have been allocated to the program, which pursues social inclusion, digital transformation, and democratic participation as central goals.
For the Modul University, the exclusion means that its own students will not receive EU funding for stays abroad. Nevertheless, students from other European universities can continue to study at the Modul University, as the EU funding goes to the student's home university. “We want to remain an international university and welcome students from all over the world,” said the university.
Further effects on the modular university
In addition to Erasmus funding, the funding freeze also affects funds from “Horizon Europe”, the EU's framework program for research funding. The university has not issued a statement on this. However, the EU Commission has confirmed that all institutions associated with the MCC are affected by these measures.
Political dimension
The case of the Modul University illustrates the tensions between the EU and Hungary. The frozen funds are part of a broader conflict over fundamental democratic values and the rule of law. While Budapest denounces the sanctions as “unjust”, the EU Commission sees them as a necessary protective measure against corruption and misuse of EU funds. Since the sanctions came into force, the Hungarian government has been trying to urge the EU to negotiate - so far without success.
The decision against the Modul University could send a signal to other European institutions with similar ties. However, experts warn that such measures could also result in collateral damage for uninvolved students and researchers. A differentiated view and transparent communication are therefore essential.
Looking to the future
While the Modul University is considering legal action, it remains unclear how the situation will develop in the long term. The EU emphasized that Hungary has the opportunity to lift the sanctions through reforms and compliance with the rule of law. Until then, however, the conflict between the EU and Hungary appears to continue to affect universities and students.
Modul University itself wants to maintain its international focus despite the current challenges. “Education knows no borders, and we will do everything we can to ensure this in the future,” concluded the university management.