- An OECD-brokered deal to establish a 15 per cent minimum tax on multinational corporations.
- An €18-billion package of financial aid to help Ukraine cover its budgetary deficit across 2023.
- The freezing of €7.5 billion in EU cohesion funds earmarked for Hungary.
- The approval of Hungary's COVID-19 recovery fund, worth €5.8 billion in grants.
Hungary blocks approval of €18 billion in EU financial aid for Ukraine
WORLD 06 December 2022 - 20:26
Hungary has blocked the approval of a new EU package of financial aid for Ukraine worth €18 billion, which the Kyiv authorities urgently need to cover their ballooning state deficit and keep the economy running against the backdrop of Russia's invasion.
The aid is designed to be disbursed over the course of 2023, amounting to €1.5 billion per month, Euronews reported on December 6.
"Hungary is not in favour of the amendment of the financial regulation," Hungarian Minister Mihály Varga said during the ministerial meeting on Tuesday.
The Hungarian veto prompted finance ministers of the European Union to delay other three key votes, including one on an internationally-backed deal to reform corporate taxation.
"Ukraine is a country at war, it desperately needs our support and we just cannot allow one member state to delay and derail this EU financial support," said European Commission Vice-President Valdis Dombrovskis.
"We must deliver it, one way or another, and we will do it."
Hungary is on the verge of having €7.5 billion of its allocated share of the EU budgets frozen after failing to complete a series of reforms that are meant to address, among other issues, corruption, irregularities in public procurement and conflicts of interest from government officials.
The unprecedented freezing of EU funds was recommended last week by the European Commission under a novel conditionality mechanism, designed to safeguard the bloc's financial interests.
The European Commission's recommendation was then passed on to finance ministers, who have the final say. But the decision added on top of a long to-do list, leading to several files becoming politically interlinked.
Tuesday's busy agenda included votes on:
The tax deal has been under discussion since mid-2021 as it needs to be transposed into EU law in order to become effective. Hungary was the only country that opposed the deal when it was put to a vote in June, arguing the reform would hurt European competitiveness and endanger jobs.
More recently, Hungary voiced its displeasure regarding the €18-billion package of financial aid for Ukraine, which would be bankrolled through the issuance of new common EU debt.
Brussels is keen to approve the 2023 envelope as soon as possible after a much-publicised failure to release the entire €9 billion that was promised to Kyiv earlier this year.
As these two files – the tax deal and the financial aid – require unanimity to be passed, Hungary has been able to leverage its veto power to exert pressure on the two other decisions concerning its public coffers – the €7.5 billion in cohesion funds and the €5.8 billion in recovery grants – which only need a qualified majority.
Crucially, the recovery plan has to be approved before the end of the year, otherwise, Hungary would lose 70% of the pre-allocated cash.
In the end, the four votes became interlinked, despite their distinct nature.
"I would like to point out that I see all these topics as one package," Czech Finance Minister Zbyněk Stanjura said on Tuesday morning, before heading to the ministerial meeting.
The Czech Republic currently holds the rotating presidency of the EU Council and is tasked with setting the agenda and steering the political debate.
The question of whether ministers would take a vote on the four issues had been the centre of speculation in Brussels for the last few days, with diplomats saying that it would all depend on the mood inside the room.
After an exchange of views over breakfast, ministers decided on Tuesday morning to postpone the key votes.
The delay in the aid for Ukraine is particularly worrisome for the bloc, as the war-torn country has been plunged into darkness following a brutal barrage of Russian attacks.
Stanjura and Dombrovskis even suggested the financial package could be released through enhanced cooperation, a system that creates a separate avenue with a reduced group of member states.
"We will not be discouraged. Our ambition remains that we will start the disbursement of our aid to Ukraine in early January," Stanjura said, asking the Council's team to examine "alternative" solutions that can bypass the unanimity requirement.
"We will be looking for a solution supported by 26 member states."
It is unclear when the four files could be voted on, as no further meetings of finance ministers are scheduled to take place before the end of the year.
The Czech Republic, however, could convene an emergency meeting to move forward with the stalled files.
In the meantime, ministers tasked the Commission with submitting a new assessment of Hungary's cohesion funds to take into account the reforms that Budapest has carried out so far. The new analysis could downgrade the €7.5 billion penalty.
Caliber.Az
1
|
Poland suspends military drills following fifth soldier's death
27 March 2024 - 13:41
|
2
|
Syrian scenario for Armenia Russian, Israeli experts’ views for Caliber.Az
26 March 2024 - 17:27
|
3
|
Serbian president warns of difficult days ahead
27 March 2024 - 11:04
|
4
|
Global reactions to UNSC Gaza ceasefire resolution Diverse views, urgent action
27 March 2024 - 18:00
|
5
|
Vucic warns of Serbia's Council of Europe departure amid Kosovo debate Double standards alert
28 March 2024 - 12:13
|
Azerbaijan, China strengthen economic ties
From trade to investment29 March 2024 - 13:10
Another suspect detained for alleged complicity in Moscow terrorist attack
29 March 2024 - 13:05
Politico: The European Parliament is once again caught in corruption
29 March 2024 - 12:52
Geopolitical storm brewing beyond Russia's reaction
EU-US-Armenia meeting sparks controversy29 March 2024 - 12:38
Speaker says Armenia doing nothing against Russia
29 March 2024 - 12:24
Armenia conducts house-to-house searches in apartments, offices of nationalists
29 March 2024 - 12:09
Ombudswoman: World community should recognize events of 1918 as genocide of Azerbaijanis
29 March 2024 - 11:57
Global trade at risk as Washington faces policy failure
US-Houthi stalemate continues29 March 2024 - 11:46
Armenia blocks Kremlin propagandist’s talk-show
29 March 2024 - 11:34
Armenian prime minister faces dilemma amid Karabakh junta provocations
How will Pashinyan respond?29 March 2024 - 11:22
Azerbaijan’s ecology minister meets with Saudi energy companies
29 March 2024 - 11:13
Israeli strike kills 36 Syrian soldiers near Aleppo
Unprecedented attack29 March 2024 - 11:02
Poland to deploy troops to ensure security at Paris Olympics amid heightened alert
29 March 2024 - 10:53
European analyst: Armenia unlikely to secure NATO or EU membership
29 March 2024 - 10:42
Top UN court orders Israel to allow food and medical aid into Gaza
29 March 2024 - 10:31
Pundit questions Armenia's dependence on Western protection
29 March 2024 - 10:19
Presidential aide: Azerbaijan very pleased with China in field of global green transformation
29 March 2024 - 10:07
Azerbaijani officials deemed more professional than Armenian counterparts, claims blogger
29 March 2024 - 09:54
Great Return: Azerbaijan resettles 35 more families in Fuzuli amid restoration efforts
PHOTO29 March 2024 - 09:41
Armenian parliament speaker affirms EU membership goal
29 March 2024 - 09:27
Iranian top diplomat opposes military presence of third countries in Caspian Sea
29 March 2024 - 09:14
Azerbaijani, Armenian parliament speakers to meet again in mid-May amid peace talks
29 March 2024 - 09:00
Assault on Yerevan police station underlines risk of violent opposition to Armenia-Azerbaijan peace
Opinion by Commonspace.eu29 March 2024 - 08:45
Estonia must double defence spending to counter Russia - military chief
29 March 2024 - 07:00
Turkmenistan ready to diversify natural gas supplies to ECO countries - president
29 March 2024 - 05:00
Eurasianet: Armenian government grappling with border delimitation dilemma
29 March 2024 - 03:01
Iran displays advanced military might at international exhibition
PHOTO/VIDEO29 March 2024 - 01:00
Armenia’s exports to Russia raise concerns over sanctions circumvention
28 March 2024 - 23:00
Lavrov blames Armenian leadership for deliberately undermining relations with Moscow
28 March 2024 - 21:09
Turkish, Azerbaijani filmmakers unite for joint historical film Golden Train
28 March 2024 - 20:57
Japan looks to revive commercial aircraft development dreams
28 March 2024 - 20:45
CoE committee plans working visit to Armenia to assess regional dynamics
28 March 2024 - 20:41
Azerbaijan, OIC Youth Forum ink deal for Shusha 2024 program
28 March 2024 - 20:37
Ukraine drone strike hits Russian infrastructure - Belgorod governor
28 March 2024 - 20:29
EU mission in Armenia transitioning to NATO oversight
Russian Foreign Minister Lavrov28 March 2024 - 20:20
US buys 2.8 mln barrels of oil for strategic reserve
28 March 2024 - 20:14
Int’l program OIC Youth capital Shusha-2024 to host array of events - minister
28 March 2024 - 19:59
Iran oil & gas expo strategic nexus for domestic & global energy players
28 March 2024 - 19:59
Who is Mohammad Mustafa, Palestinian Prime Minister-designate?
28 March 2024 - 19:45
Shusha holds paramount significance for all Turkic states
OIC Youth Forum president28 March 2024 - 19:35