1500CET Deadline Set For Ukraine Aid-Hungary Funds-Corporate Tax Agreement

Politico reports that a deadline of 1500CET (0900ET/1400GMT) has been set for agreeing to the joint Ukraine aid-Hungary RRF approval-Hungary cohesion fund suspension-minimum corporate tax rate package according to two unnamed EU diplomats.

• Member state permanent representatives had sought to reach consensus on the issue at meetings over the past week, but Poland has held out on the issue of minimum corporate taxation.
• Politico on Poland's objections: "The Poles want the minimum tax, known as Pillar Two, to proceed in parallel with Pillar One — the reallocation of taxing rights of multinational corporations based on where they make their profits. The two are part of an international tax deal backed by over 130 countries, but their implementation follows separate parallel tracks. The Poles want to take Pillar Two out of the package and undo the political linkage with Ukraine aid, which they support."
• Poland also holding out on ninth round of EU sanctions on Russia, with PM Mateusz Morawiecki stating before the EUCO summit “Unfortunately some countries suggested removing several Russian oligarchs from the list, [...] We strongly oppose this. Insinuating that Poland would opt for weakening the sanctions will not work. We call upon all member states, especially Germany, France and the Netherlands, to bolster and extend the sanctions,”