The conflict with Budapest overshadows a meeting of finance ministers. The Czech Presidency must remove the vote on aid to Ukraine, global minimum tax and discussions on Hungary from the agenda.
On Tuesday in Brussels, the EU finance ministers made no decision on cutting billions in funding for Hungary. According to the Austrian Ministry of Finance, the Czech Council Presidency had removed the debate from the agenda. Reason: Hungary has signaled that there will be no approval of financial aid for Ukraine and the global minimum tax. Now the EU Commission is to re-examine Hungary’s rule of law reforms.
“Today we asked the European Commission once again to assess the current developments in Hungary,” said German Finance Minister Christian Lindner after a meeting with his EU colleagues in Brussels. There were still developments in Hungarian politics after the Commission presented its report. The current report only included measures up to November 19th.
The Ministry of Finance had also previously said that the EU Council Presidency had “requested the EU Commission to carry out an updated assessment of the Hungarian reforms in connection with the rule of law in the next few days”. However, the Brussels authority seems to be skeptical about this: “We believe that the Council of Ministers has all the elements to make a decision,” said a spokesman in advance.
Brunner: Tax money must be used “correctly”.
Finance Minister Magnus Brunner (ÖVP) was waiting before the meeting. At the same time, he emphasized that the rule of law should not be discussed, it “is a cornerstone of the European Union,” said Brunner. Tax money must be used “correctly”. At the present time, according to Austria, the assessment of the EU Commission would follow his statements.
Hungary’s Prime Minister Viktor Orbán himself described the veto accusations as “fake news” on Tuesday. Hungary is ready to provide financial assistance to Ukraine on a bilateral basis. However, joint EU debts are not the solution, he wrote on Twitter. He initially did not comment on the subject of the minimum tax.
Last week, the EU Commission recommended not releasing corona aid and other funding for Budapest until Prime Minister Orbán’s right-wing government implements promises to uphold the rule of law. In total, it is about 13.3 billion euros. Now the EU states have to decide on this recommendation.
7.5 billion euros are up for debate
The EU Commission’s proposals involve around 7.5 billion euros from the community budget that are to be frozen. In addition, Corona aid of over 5.8 billion euros should only be paid out if Budapest has reached certain milestones in the area of the rule of law. For years, the EU Commission has accused Hungary of undermining EU standards and basic values.
The Authority found that while Hungary had implemented a number of reforms, key aspects had not been adequately implemented. Significant steps are still needed to eliminate remaining risks to the EU budget in Hungary. Specifically, there are fears that EU funds will not be used for the intended purposes due to corruption.
Hungary could block aid to Ukraine
The topic has now become particularly explosive due to possible blockades by Hungary on other projects, such as further billions in aid for Ukraine and the international minimum tax. “Our goal remains to start disbursing aid to Ukraine at the beginning of January,” said Czech Finance Minister Zbynek Stanjura, whose country will chair the EU countries until the end of the year. According to him, the other 26 member countries now want to look for an alternative solution, which is considered complicated.
EU Budget Commissioner Johannes Hahn said Brussels would “do everything it can” to provide Ukraine with the 18 billion euros that Commission President Ursula von der Leyen had promised Kyiv for the coming year.
(APA/Reuters)