London Daily

Focus on the big picture.
Saturday, Jun 21, 2025

Poland holds up Ukraine aid and Hungary plans over tax concerns

Poland holds up Ukraine aid and Hungary plans over tax concerns

Polish Prime Minister Mateusz Morawiecki is expected to escalate the issue at a meeting of EU leaders Thursday
Poland tonight refused to back a package deal to release €18 billion in European Union aid for Ukraine as well as two unrelated but linked decisions on Hungary over concerns about a separate minimum corporate tax rate plan, four EU diplomats told POLITICO.

“There’s a lot of frustration with Poland jeopardizing Ukraine aid by blocking the minimum tax,” said an EU diplomat, describing the move as “another hostage-taking situation.”

The four files — the Ukraine support, Hungary's spending plan under the EU's post-pandemic recovery fund, a decision to freeze €6.3 billion in funds for Budapest and the tax reform — were all part of a package deal that was scheduled for adoption by the EU's member countries today.

An original deadline of 5 p.m. was extended until 8 p.m. at the request of Poland. When this was also missed, Czech Prime Minister Petr Fiala, whose country holds the rotating Presidency of the Council, made an eleventh-hour attempt to convince his Polish counterpart, Mateusz Morawiecki, to back down.

But it didn't work. The expectation is that Morawiecki will now escalate the matter to Thursday's meeting of EU leaders in Brussels, diplomats said, despite the issue not formally being on the agenda.

The deadline for adoption has now been extended until Thursday, with no precise timing, diplomats said. Under the terms of the package, if one of the four items is vetoed, as the minimum tax rate currently is by Poland, all four issues won't go through.

Poland has been blocking the minimum tax rate for months before seemingly relenting when it got its recovery plan approved.

Then it was the turn of Hungary to put the brakes on until it dropped its veto on Monday.

But Warsaw raised last-minute reservations on Monday at a meeting of EU ambassadors.

"It’s like an abusive relationship: they keep promising it will be different next time, but deep down we know we will get hurt over and over again," another EU diplomat said.

The Polish government did not reply to a request for comment.
Newsletter

Related Articles

0:00
0:00
Close
Political Turmoil Resurfaces in Belgium Amid Economic Concerns
Fed policymakers divided on timing of interest rate cuts
Trump signals imminent agreement with Harvard University
Inheritance tax referendum alarms Swiss billionaire community
Japan cancels bilateral security meeting amid US defence demands
AI skeptic Emily Bender warns that ‘the emperor has no clothes’
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
×