EU freezes $6.6B to Hungary while Budapest lifts veto on sending aid to Ukraine

LONDON

European Union member states suspended a total of €6.3 billion ($6.6 billion) of the bloc’s funds to be provided to Hungary on Tuesday while approving €5.8 billion in post-COVID recovery funding.

The European Council announced that representatives of the member states have taken decisions on the status of the funds to be provided to Hungary within the scope of the mechanism that binds the EU budget to the rule of law, and the evaluation of Hungary's COVID-19 recovery plan.

Pointing out that the member states took the decision with a qualified majority on the protection of the Union's budget, it pointed to problems in Hungary in areas such as public procurement, investigation procedures and the fight against corruption.

The European Commission last month demanded that €7.5 billion of EU funds to Budapest be suspended, or 65% of the harmonization funds that Hungary can receive under the rule of law mechanism.

With the new decision, the member states have frozen 55% of the funds, which make up €6.3 billion.

Meanwhile, Hungary agreed to lift its veto on sending €18 billion in EU aid to Ukraine.

"Megadeal! EU ambassadors approved in principle a package of €18 billion in support for Ukraine, 15% minimum tax for big corporations, approval of Hungary's RRP (post-COVID recovery and resilience plan) and an agreement on conditionality," the Czech Presidency of the European Council said on Twitter.