The conflict with Budapest overshadows a meeting of finance ministers. The Czech presidency is expected to remove from the agenda the vote on aid to Ukraine, global minimum tax and discussions on Hungary.
On Tuesday, in Brussels, EU finance ministers made no decision about cutting billions in funding for Hungary. According to the Austrian Ministry of Finance, the Czech Council Presidency has removed the debate from the agenda. Why: Hungary has signaled that there will be no approval of financial aid for Ukraine and the global minimum tax. Now, the EU Commission must re-examine Hungary’s rule of law reforms.
“Today we once again ask the European Commission to assess current developments in Hungary,” German Finance Minister Christian Lindner said after a meeting with his EU counterparts in Brussels. There were still developments in Hungarian politics after the Commission presented its report. The current report only includes measures up to November 19th.
The finance ministry had also previously said that the EU Council Presidency had “requested the EU Commission to carry out an updated assessment of Hungarian reforms in connection with the rule of law in the coming days”. However, the authority in Brussels seems to be skeptical about this: “We believe that the Council of Ministers has all the elements to make a decision”, anticipated a spokesperson.
Brunner: Tax dollars must be used “rightly”.
Finance Minister Magnus Brunner (ÖVP) was waiting ahead of the meeting. At the same time, he stressed that the rule of law should not be discussed, “it’s a cornerstone of the European Union,” Brunner said. Tax money must be used “rightly”. Currently, according to Austria, the EU Commission’s assessment would follow his statements.
Last week, the EU Commission recommended only releasing corona aid and other funds to Budapest if Prime Minister Viktor Orbán’s right-wing government implemented promises to uphold the rule of law. In total, there are around 13.3 billion euros. Now EU states have to decide on this recommendation.
The European Commission’s proposals involve around 7.5 billion euros from the community budget that will be frozen. Furthermore, the Corona aid of more than €5.8 billion is only to be paid if Budapest reaches certain milestones in the rule of law area. For years, the EU Commission has accused Hungary of undermining the EU’s core values and standards.
The Authority found that, while Hungary has implemented a number of reforms, key aspects have not been adequately implemented. Significant measures are still needed to eliminate the remaining risks to the EU budget in Hungary. Specifically, it is feared that EU funds are not used for their intended purposes due to corruption.
Blocking aid to Ukraine
The topic is also explosive because Hungary is blocking other projects in connection with possible money cuts, including billions more in aid for Ukraine and the international minimum tax. “Our aim remains to start disbursing aid to Ukraine in early January,” said Czech Finance Minister Zbynek Stanjura, whose country will preside over EU countries until the end of the year. According to him, the other 26 member countries now want to seek an alternative solution, considered complicated.
EU Budget Commissioner Johannes Hahn said Brussels “will do everything it can” to provide Ukraine with the 18 billion euros Commission President Ursula von der Leyen has promised Kyiv for next year.
(APA/Portal)