By Tamas Csonka in Budapest A senior European Council official has denied press reports that the EU is considering cutting off Hungary from EU funds completely if it again blocks the proposed €50bn aid package to Ukraine at this week’s summit. The EU retreat comes as Budapest indicated the basis for a potential compromise. The fact that the briefing note was leaked to the press reflects the growing frustration in European capitals at the tactics of Hungary’s strongman Viktor Orban, local media reported on January 29. In related news, Washington is also exerting pressure on Hungary to approve S…