RT.com
04 Oct 2023, 00:13 GMT+10
Viktor Orban had previously vowed to block any increase in the EU budget, jeopardizing the bloc's financial aid to Kiev
The European Commission is expected to unfreeze about €13 billion ($13.6 billion) in EU funds for Hungary by the end of November, aiming to secure the country's support for an increase to the bloc's budget and massive financial assistance to Kiev, according to three officials briefed on the discussions cited by Financial Times.
In December, Brussels froze €22 billion ($23 billion) in cohesion funds allocated to Hungary. The money was blocked over major concerns related to the independence of judges and the country's failure to comply with the EU Charter of Fundamental Rights on issues including LGBTQ rights, academic freedom, and asylum.
The funds were supposed to be frozen until Budapest complies with rules protecting human rights and the rule of law. In May, the Hungarian government reached a preliminary deal on key judicial reforms. As a result, Brussels agreed to release more than half of the amount.
By unblocking the funds, EU authorities expect to gain Hungarian support for boosting the bloc's budget and providing significant financial aid to Ukraine.
The commission had previously proposed a €66 billion increase to the EU's shared budget to cover increased costs, part of which are expected to contribute to a €50 billion financial package for Kiev to help in covering the country's expenses for the next four years.
Since the beginning of the Russian military operation in Ukraine, Hungarian Prime Minister Viktor Orban's line of argument has been broadly different from that of the EU and its allies. The PM has repeatedly criticized sanctions against Russia and refused to send weapons to Ukraine. Orban also urged the EU to persuade Moscow and Kiev to begin peace negotiations.
In retaliation, the Ukrainian National Corruption Prevention Agency (NCPA) designated Hungary's largest commercial lender OTP Bank an "international sponsor of war" over allegedly providing preferential lending terms to the Russian military.
Budapest responded by blocking the release of funding totaling €500 million earmarked for military aid to Ukraine by means of the European Peace Facility (EPF) mechanism.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Hong Kong Herald news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Hong Kong Herald.
More InformationBENTONVILLE, Arkansas: As part of its efforts to reduce reliance on China, cut costs, and diversify its supply chains, Walmart, ...
NAYPYIDAW, Myanmar: Kyar Win, spokesperson for the Myanmar National Democratic Alliance Army, which launched a surprise offensive last month against ...
BEIJING, China: The country's commerce ministry said that during a meeting with Vietnamese Prime Minister Pham Minh Chinh in Ho ...
© Provided by Xinhua From top executives and editors-in-chief to seasoned journalists and media scholars, as well as press officials, ...
© Provided by Xinhua A delegation of China's manned space program are on a six-day visit to Hong Kong and ...
(Photo credit: Sam Navarro-USA TODAY Sports) Sophia Smith scored early in a rare start at center forward and the U.S. ...
WASHINGTON D.C.: This week, the White House said that Senior Biden administration officials met with the makers of respiratory syncytial ...
CHEYENNE, Wyoming: This week, the Biden administration raised US$3.4 million from a sale of oil and gas drilling rights in ...
NEW YORK, New York - U.S. stocks extended their rally on Friday despite remarks by Federal Reserve Chair Jerome Powell ...
MOSCOW, Russia: Russia's trade in oil with India, one of the most lucrative oil trade routes since the imposition of ...
LONDON - Health experts and tobacco campaigners have strongly criticized New Zealand's decision to repeal laws that aimed to ban ...
NEW YORK, New York - The Dow Jones index was the standout on U.S. financial markets on Thursday with a ...