London Daily

Focus on the big picture.
Friday, Sep 18, 2026

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
TUC Calls for Social Energy Tariff Funded by Higher Taxes on Bank Profits
UK Parliament Enters Conference Recess After Advancing Sovereign Grant Legislation
King Charles Hosts Artificial Intelligence Leaders at Dumfries House Summit
Nearly Seven in Ten UK Small Businesses Delay or Cancel Growth Plans as Costs Rise
Anthropic Details Malicious Use of Claude in Cyber, Weapons and Influence Operations
McLaren Announces £500 Million UK Investment and 1,000 New Jobs
Scotland and Wales Sign Cardiff Agreement to Deepen Cooperation on Shared Policy Priorities
UK Government Moves to Fully Fund Teacher Pay Award as Strike Threat Recedes
UK Competition Regulator Deepens Scrutiny of Microsoft’s Business Software and AI Market Position
NHS England Reforms Focus on Cutting Waiting Lists and Improving Digital Care
England Maintains Mandatory Housing Targets in Push for 1.5 Million New Homes
UK Government Plans Statutory Industrial Strategy Council to Strengthen Long-Term Economic Policy
Asthma Charity Warns of Major Gaps in Childhood Diagnostic Testing Across England
TUC Chief Paul Nowak Appointed to Bank of England Court
Bristol Opens £35 Million Deep-Tech Innovation Hub at Temple Quarter
Oxfordshire Village Votes Symbolically to Leave UK Over Asylum Housing Plan
Andy Burnham Deepens UK Defense and AI Cooperation With NATO and Canada
UK Government Announces Neonatal Safety Reforms After Thirlwall Inquiry
Bank of England Weighs Rate Decision as UK Inflation Rises to 3.1%
UK Health Unions Warn of Staffing Pressures as Public and Private Pay Growth Diverges
Rockstar Games Faces Tribunal Claims From 23 Former Grand Theft Auto VI Developers
UK Treasury Faces Tighter Budget Constraints as Borrowing Costs and Pension Spending Rise
Prime Minister Andy Burnham Sets Out Ten-Year Plan for Greater Public Oversight of Utilities
UK Economy Grows 0.4% in July as Services and Technology Activity Strengthen
Scotland, Wales and Northern Ireland Leaders Coordinate Push for UK Constitutional Change
Police Tighten Public-Order Measures After Anti-Immigration Protests in Dover and Portsmouth
UK Ministers Pressed for Answers After US Diplomat Accused of Child Abuse Images Leaves Britain
Jaguar Land Rover Pursues NATO Defense Contracts for Defender Vehicles
British Service Member Dies in Road Accident While Deployed in Ukraine
George Osborne Calls for Britain to Rejoin EU Customs Union
Anthropic Chief Dario Amodei Urges Faster UK Action on Advanced AI Risks
UK State Pension Set for 3.9% Rise Under Triple Lock
UK Labour Market Cools as Payrolled Employment Continues to Decline
Reform UK’s £72 Million in Donations Faces Scrutiny Under Proposed Retrospective Funding Rules
UK Doctors Warn Expanded Pharmacy First Scheme Could Put Patients at Risk
British Airlines Cut Short-Haul Capacity as Jet Fuel Costs Rise
UK News Publishers Forecast 40% Search Traffic Drop as AI Overviews Expand
Axel Springer Wins Approval for £575 Million Daily Telegraph Acquisition
London Mayor Sadiq Khan Opposes Heathrow Third Runway Over Climate Targets
Scotland, Wales and Northern Ireland Leaders Hold Summit Seeking Greater Autonomy
UK Energy Price Cap Set to Rise to £1,723 in October
UK Treasury Warns Middle East Conflict Is Threatening Economic Growth
Labour Moves to Retrospectively Cap Overseas Political Donations After Reform UK Funding Surge
HMRC Warns Nearly Seven Million Adults Are Unclear About State Pension Entitlements
UK Parliament Passes Sovereign Grant Reform Before Conference Recess
British Rail Passengers Gain Automatic Right to Switch Operators During Disruptions
Burnham Hosts Downing Street Business Summit as UK Fiscal Pressure Builds
Labour Government Moves to Challenge £72 Million in Reform UK Crypto Donations
UK Advertising Industry Warns Wider Junk Food Rules Could Put £1 Billion in Media Spending at Risk
Cornwall Opens Devolution Talks With UK Government Over Transport and Local Services
×