On Thursday 15 December, the Council of the European Union adopted, by written procedure, the package of four politically related legislative texts on the protection of the EU’s financial interests in Hungary, after the lifting of the Polish reservation.
The EU Council thus adopted the regulation amending the Multiannual Financial Framework, which will make it possible to provide macrofinancial assistance to Ukraine of €18 billion in 2023 through a European loan guaranteed by the EU budget (see EUROPE 13083/27).
It also adopted the directive to ensure a worldwide minimum level of taxation for large multinational enterprises (Pillar II of the OECD agreement).
“We now need to focus our efforts on finalising the discussions on the other pillar of the comprehensive agreement. (...) Profits should be taxed where they are made”, commented EU Commissioner for Taxation, Paolo Gentiloni. In the conclusions it adopted, the European Council asks the European Commission to present, if necessary, a proposal by the end of 2023 in the event of no agreement being reached at the OECD on Pillar I. See the European Council conclusions: https://aeur.eu/f/4pd
Hungary. The EU Council also adopted the decision on the protection of the EU budget against breaches of the Rule of law in Hungary. This decision suspends €6.3 billion of EU cohesion policy funds for the country (see EUROPE 13084/19).
The decision validating the Hungarian recovery plan with €5.8 billion in grants was adopted as well. The Hungarian authorities will have to undertake 27 reforms to qualify for a first payment under the plan. (Original version in French by Lionel Changeur)