Rule of law dispute: Hungary blocks billions in aid for Ukraine Poland wants to step up pressure on Germany for WWII reparations

Due to the dispute over the possible freezing of EU billions for Hungary, the country is blocking massive financial aid to war-torn Ukraine. “It is a pity that we have not decided today on the indispensable financial aid for Ukraine”, said Federal Finance Minister Christian Lindner (FDP) on Tuesday after a meeting with his EU colleagues in Brussels. “Hungary is responsible for that.”

Last week, the EU Commission recommended only releasing corona aid and other funds for Hungary if Prime Minister Viktor Orban’s right-wing government fully implements promises to uphold the rule of law. In total, this concerns about 13.3 billion euros.

Against this background, Hungary has blocked the decision on aid to Ukraine, which must be taken by unanimity. The international minimum tax, on which the EU states had actually already agreed with about 130 other countries, was also taken off the agenda because of Hungarian opposition. “The approval of the package now depends on the development of Hungary’s measures to protect the EU budget”, said Czech Finance Minister Zbynek Stanjura, who chaired the talks. If necessary, a solution must be found to provide Ukraine with the money without Hungary.

However, there is a way to break the deadlock: the EU Commission must now review Hungary’s anti-corruption measures a second time before EU member states decide whether to freeze the billions. The report should be available by the end of the week. Stanjura hopes that a compromise can be found on the various measures in “a few days”. Then the finance ministers could decide on all measures by the end of the year at the latest.

Lindner explained that there were still developments in Hungarian politics after the Commission presented its first report. This only included measures up to November 19. However, Lindner also cautioned: “It should not be tested until the desired result has been achieved.”

For years, the European Commission has accused Hungary of undermining EU norms and fundamental values. The Commission’s proposals involve around EUR 7.5 billion from the Community budget to be frozen. In addition, corona aid of more than 5.8 billion euros may only be paid out if Budapest has reached certain milestones in the area of ​​the rule of law. EU countries must agree to both recommendations.

The Commission recently found that Hungary had implemented a number of reforms, but that key aspects had not been adequately implemented. Significant steps are still needed to remove the remaining risks to the EU budget in Hungary. In particular, there are fears that EU funds will not be used for their intended purposes due to corruption. (saw/sda/dpa)