“EU ambassadors approved in principle EUR 18 billion aid to Ukraine, 15% minimum tax for large companies, acceptance of Hungary’s recovery plan and agreement on conditionality,” the Czech presidency said on Twitter.
The parties reached a compromise on Monday night to release some of the funds intended for Hungary, which allowed Budapest’s reservations to be lifted on providing 18 billion euros in macroeconomic aid to Ukraine in 2023, the Czech presidency announced European Council.
“EU ambassadors approved in principle EUR 18 billion aid to Ukraine, 15% minimum tax for large companies, acceptance of Hungary’s recovery plan and agreement on conditionality,” the Czech presidency said on Twitter.
“The package will be confirmed through a written process,” he clarified.
This will begin tomorrow, Wednesday, a diplomatic source said.
Hungarian Prime Minister Viktor Orban has categorically ruled out Budapest’s approval of financial aid to Ukraine if the recovery plan and cohesion fund funds expected by his government are frozen by his partners.
Furthermore, the Hungarian government explained that it would not agree to the minimum tax of 15% for large companies.
The compromise reached by the parties yesterday contradicts the recommendations of the European Commission. The Commission under German Ursula von der Leyen has recommended freezing 7.5 billion euros earmarked for Hungary, judging that the reforms recently approved by Budapest to fight corruption continue to fall short.
Disbursement of the €5.8bn economic recovery plan presented by Budapest is being held up as rule of law reforms are implemented.
Member States took note of the latest measures, adopted last Wednesday by the Hungarian Parliament, in order to fulfill the conditions imposed on Hungary.
The compromise reached by the parties yesterday sees European funds earmarked for Budapest cut to 6.3 billion euros but frozen to pressure Prime Minister Orban’s right-wing nationalist government to comply with demands by its partners to implement measures as to the rule of law, a diplomatic source explained.
RES-EMP
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