The Czech Presidency of the Council of the EU has announced that it has reached a compromise on the unblocking of EU funds for Hungary, thus resolving Budapest’s reluctance to provide 18 billion euros in aid to Ukraine in 2023, AFP reports.

“EU ambassadors reached an agreement in principle on aid to Ukraine in the amount of 18 billion euros, a minimum tax of 15% for large companies, the approval of Hungary’s recovery plan and agreement on conditions,” the Czech presidency said on Twitter.

“The package will be confirmed through a written procedure,” the quoted source said. It will be launched on Wednesday, diplomatic sources told AFP.

Hungarian Prime Minister Viktor Orbán has refused to agree to financial aid to Ukraine if his country’s recovery plan and cohesion funds are blocked by the EU. Budapest also refused to accept a minimum tax of 15% for large companies.

The deal reached on Monday is a disappointment for the European Commission. The executive in Brussels, chaired by Ursula von der Leyen, has recommended freezing 7.5 billion euros in EU funds for Hungary, saying the latest reforms adopted by Budapest to fight corruption are still not enough.

Payment of the €5.8 billion economic recovery plan presented by Budapest also depended on the implementation of rule of law reforms. Member States took note of the latest measures adopted by the Hungarian Parliament on Wednesday to ease the conditions imposed on Hungary.

The compromise reached on Monday cuts frozen EU funds to 6.3 billion to force Budapest to comply with measures demanded by its European partners, diplomatic sources said.

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