Hungary Hinders Approval of Aid Package for Ukraine Worth €18 Billion

Hungary just prevented Brussels from granting the aid package for Ukraine worth €18 billion. Kyiv needs this to assist its deficit which is getting worse as Russia continues retaliating for its attacks on Russian targets.

Hungary Gave Brussels Another Headache

Budapest has prevented the assistance intended for disbursement for 2023, equating to €1.5 billion per month to Kyiv, reported Euronews.

The Hungarian veto compelled the finance ministers of the European Union to postpone some key votes, including the one on an internationally backed deal to redress corporate income tax.

Hungarian Minister Mihály Varga said at the ministerial meeting last Tuesday that Budapest wasn't in favor of revising the financial reform, noted Yahoo.

Budapest wants its funds to be open because Brussels has problems with it. Like concerns about corrupt practices, anomalies in procurement contracts, and improprieties from government leaders.

EU money meant for Hungary was held up last week by the European Commission to safeguard the bloc's economic interest.

A proposal from the European Commission was given to the finance ministers, who decided. However, the matter of aid for Kyiv is connected to other concerns.

Aid Package for Ukraine

A tax agreement is still being negotiated as of mid-2021 because it needed to be codified into EU law before it could take effect.

The only nation that objected to the agreement as it was put to a referendum in June, contending the restructuring might hurt Europe's ability to compete and seriously harm jobs, citing Euractiv.

More recently, Budapest voiced its dissatisfaction about the $18 billion bundle of financial aid for Kyiv, which will be bankrolled toward issuing common EU debt.

After a widely publicized defeat to release the full amount pledged to Kyiv fairly early in the year, Brussels is eager to endorse the 2023 package as quickly as possible.

Since these two files, the tax agreement and financial aid, necessitate majority consent, Budapest has been able to use veto rights to pressure both of these decisions that affect its public coffers.

Fundamentally, the recovery program would have to be authorized well before the end of the year, or else Hungary might lose 70% of the pre-allocated funds. Aside from their differences, the four votes ultimately became interconnected.

Before moving on to the ministerial conference, Czech Finance Minister Zbynk Stanjura said these topics should be part of one package last Tuesday morning.

The Czech Republic leads the rotating presidency of the EU Council, and it chooses the agenda and tries to steer all discussions. Despite inflation and energy problems, the bloc would instead give aid to Kyiv; that is the bane of many in the EU.

Hungary stopped the aid package for Ukraine from passing in Brussels of the oppressive action of the EU officials.