Hungary vetoes EU financial aid to Ukraine

Finance ministers from 27 EU member states met in Brussels. On the agenda of the meeting, the situation of the funds to be provided to Hungary under the mechanism linking the EU budget to the condition of the rule of law, the evaluation of the bailout plan for Hungary, the package of financial support of 18 billion euros for Ukraine by 2023 and the application of a global minimum corporate tax of 15 percent to multinational companies. There were several titles.

At the end of the meeting, Zbynek Stanjura, Minister of Finance of the Czech Republic, the EU Presidency, announced that the package, which includes financial support of 18 billion euros to Ukraine next year, was not approved.

Noting that the package unanimously requested by the EU countries could not be accepted, Stanjura stated that they started working on a solution that overcame Hungary’s veto and was supported by 26 member states.

Stanjura stated that they maintain their goal of starting financial support for Ukraine in January.

THE FUNDS FROM HUNGARY ARE REMOVED FROM THE AGENDA OF THE MEETING

After Hungary vetoed the aid package for Ukraine, the ministers removed the issue of financing Hungary from the meeting’s agenda. Therefore, the EU countries postponed their decision to send funds to Hungary.

The issue of the global corporate tax, which Hungary opposes, was also not discussed at the meeting. The tax treaty required global companies to be subject to a tax rate of at least 15 percent starting in 2023.

Hungary was planned to receive a grant of 5.8 billion euros from the EU recovery funds, which were set up to combat the economic consequences of the Covid-19 epidemic.

Hungary will lose funds if the EU countries do not approve this bailout program this year. Harmonization funds of €7.5 billion, which Hungary is expected to receive from the EU budget, are frozen due to the rule of law mechanism. The approval of the member states is required for the release of this resource.

The EU expects progress from Hungary in releasing funds in various areas, such as judicial independence, control of spending, the fight against corruption and reporting.

Opposing the EU as a whole providing financial support to Ukraine and taking joint loans for it, Hungary argues that each member state should help Ukraine according to its own means. (AA)