The EU countries have reached a preliminary agreement on the 18 billion euro loan package to be granted to Ukraine for next year. At the same time, a minimum tax aimed at large companies was agreed upon.
In the months-long struggle, progress was made by making concessions to Hungary. Hungary froze the loan package last week, when the EU finance ministers discussed freezing Hungary’s EU money at the same time. Big cuts were planned for Hungary’s subsidies due to shortcomings related to the rule of law.
According to the preliminary agreement, the EU will accept Hungary’s plan on how it will spend EUR 5.8 billion worth of EU money. Before this, however, Hungary still has to fulfill numerous conditions. In addition, the EU will reduce the percentage of Hungary’s so-called cohesion funds that will be frozen.
Prime Minister of Hungary Viktor Orban has sought a solution to the support issue in recent months by, among other things, changing national laws so that the country could appease the EU’s long-standing corruption concerns about Hungary.
The subsidies are necessary for Orban’s administration due to the difficult economic situation. Inflation has risen to 26 percent in Hungary, and the government debt is growing rapidly.
Sources: Reuters, AP