EU: Compromise with Hungary to grant aid of 18 billion euros to Ukraine

The parties reached a compromise yesterday Monday night (12/12) to release some of the funds earmarked for the Hungarywhich allowed Budapest’s reservations to grant 18 billion euros of macroeconomic aid to the Ukraine in 2023, announced the Czech presidency of the European Council.

“Her ambassadors EU approved in principle 18 billion euro aid to Ukrainethe 15% minimum tax for large companies, the 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 img said.

The Hungarian Prime Minister Viktor Orban categorically ruled out Budapest’s approval of the grant financial assistance in Ukraine if the recovery plan and cohesion fund funds expected by his government were 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 the German Ursula von der Leyen recommended freezing the 7.5 billion euros intended for Hungaryjudging that the reforms recently adopted by Budapest to fight corruption continue to fall short.

Disbursement of 5.8 billion euros of economic recovery plan presented by Budapest is suspended 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 provides cut to 6.3 billion euros in European funds earmarked for Budapest, but will be frozen to pressure Prime Minister Orban’s right-wing nationalist government to comply with its partners’ demand that it implement rule of law measures, a diplomatic img said .