this government Viktor Orbán is not willing to give up. It seeks 13,300 million European funds (7,500 million from cohesion funds and 5,800 million from New Generation funds) allocated to Hungary. drift in state and for this, it has decided to use its veto and blocking power at the Assembly meeting. EU economy and finance ministers Two of the cases pending a unanimous decision: the 18,000m euro payment to help Ukraine stay afloat next year and the 15% corporate tax on large multinationals.
Regarding the decision to block the new aid plan for Ukraine, the Hungarian representative in Ecofin said, “Hungary is not in favor of changing the financial regulation. Unfortunately, we are not in a position to accept the package. However, our ambition continues.” We will distribute aid to Ukraine at the beginning of January. We will seek a solution with the support of 26 Member States,” he said. Zbyněk Stanjura. The current goal is the economic and financial committee. alternative solutionsThey allow to pay Ukraine’s salaries, pensions and the money that should pay for the functioning of the administration, without touching the multi-annual financial framework, which requires unanimity.
This isn’t the only file blown up by Budapest’s refusal. The Czech Republic’s EU presidency also had to remove rule making from the agenda. minimum rate of corporate tax is 15% To large multinational companies agreed within the framework of the OECD, which will apply to companies with revenues of more than 750 million euros. The resolution also requires the unanimity of the Twenty-seven, and the Hungarian delegation once again prevented the decision from continuing. While the Hungarians insist that neither issue is linked to the payment of European funds to Hungary, diplomatic sources admit it was a package deal.
Funds for Hungary
In fact, Twenty-seven finally put off her decision. Freezing of 7,500 million compliance funds Some countries, such as Hungary to Germany, understand that the proposal requires a reassessment of the measures implemented by the Orbán government since last November 19, and this could lead to a reduction in the amount frozen. In any case, time is running out. The decision-making period ends on 19 December. If the Twenty-Sevens don’t have a decision by then, the case will be thrown into the trash with no sanctions on Budapest. There is no decision about it. hungary rescue planHe is the only one among the twenty-seven to be approved and this will give him access to 5,800 million euros.
Brussels offered to approve the plan a week ago, but requires that the payment to the Hungarian Government meet milestones and targets in terms of reforms to fight corruption and strengthen judicial independence. An urgent decision is needed given that Budapest will lose 70% of the funds if Ecofin does not approve the Hungarian plan by the end of the year. This outcome will force the Czech presidency to convene a new extraordinary cabinet next week or to take the issue to the EU leaders’ summit scheduled for 15 December.