EU Council adopted Hungarian RRF plan: EUR billions almost unlocked

The Council of the European Union on Friday adopted legislation on Hungary’s Recovery and Resilience Facility (RRF) plan and the conditionality mechanism, as well as on a 18 billion euro aid for Ukraine and the global minimum corporate tax.

Heads of the member states approved the legislation as a package at a summit on Thursday and the Council adopted it in a written procedure the day after. The Council adopted implementing decisions on the rule-of-law conditionality mechanism and approved the European Commission’s assessment of Hungary’s RRF plan. The assessment said Hungary’s plan was in line with all relevant criteria and requirements of the RRF. The plan is comprehensive and offers a balanced response to Hungary’s economic and social situation, it said.

The legislation also amended the 2021-2027 budget to allow 18 billion euros in funding for Ukraine. The aid shall be used to ensure basic public services such as the operation of schools and hospitals and housing for deported citizens, as well as to preserve macroeconomic stability and the reconstruction of vital infrastructure destroyed by Russian forces, the legislation said.

Member states have also adopted the introduction of the global minimum corporate tax and undertook to implement it in their own tax systems. As a result, large multinational and domestic corporations will have to pay 15 percent in corporate taxes.

Read alsoHungarian minimum wage earners have to pay the highest taxes in the world

Source: MTI