Increasing tension between Hungary and the EU over euro billions
The European Union’s decision-making and executive body is delaying the adoption of the Hungarian government’s investment plans and reform package to ensure transparency in the judiciary. A deadlock has emerged and the EU may give ground, but this could cause resentment among many.
No deal between Hungary and the EU
Time is running out for the European Union’s leaders to reach an agreement with the Hungarian government. At issue is the transfer of EU recovery fund resources, Bloomberg reports.
The rule of law dispute threatens to leave Hungary without an EU decision on crucial issues such as financial aid for Ukraine.
The next meeting of the European Commission is on Tuesday 22 November. Contrary to earlier reports, the ECJ will not put on the agenda the Hungarian government’s investment plan and its reform package to guarantee the independence of the judiciary, napi.hu reports.
If the committee’s decision is delayed, EU finance ministers will not have time to prepare their own proposal on the matter at their meeting on 6 December. Meanwhile, EU leaders must decide before the end of the year what percentage of the EU recovery fund the Hungarian capital will receive. Up to 70 percent of this funding could be lost, which would mean a loss of EUR 4.1 billion for Hungary.
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Deadlock over the veto
Some EU countries need time to assess Hungary’s reform plans, according to European diplomats. These include the Netherlands, Sweden, Finland and Denmark. The states concerned are also conducting internal decision-making procedures.
The fact that the EUR 18 billion aid package for Ukraine and the global minimum corporate profit tax will not be implemented because of the Hungarian veto may also play a role.
Hungary and Budapest may get the aid in order to override the Hungarian veto, but this could be an unpalatable solution for many countries.
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Source: napi.hu, Bloomberg