According to EU Budget Commissioner Johannes Hahn, European Union leaders are likely to reach a deal on 50 billion euros ($54 billion) for Ukraine this week. This is due to the fact that the funds will come as part of a larger package that Hungary, which previously threatened to block it, will also benefit from.
The proposed revision to the EU budget until 2027 aims to provide 33 billion euros in loans and 17 billion euros in grants for Ukraine, which is currently facing a Russian invasion. This funding is crucial to ensure Ukraine has the necessary financing to maintain the functioning of the state.
Despite the importance of the agreement, Hungary, whose Prime Minister Viktor Orban has close ties with Moscow, has raised concerns about the amount and its placement in the EU budget. As a result, all 27 EU governments, including Hungary, must unanimously agree on the budget.
In addition to the EU funds, new financial aid to Ukraine from the United States has become a domestic political bargaining chip, casting doubt on whether Kyiv will receive further funding from Washington.
EU Budget Commissioner Johannes Hahn revealed in an exclusive interview with Reuters that the American government had requested the EU to lead in providing long-term support for Ukraine in order to create domestic pressure on the House of Representatives and the Senate to do something similar.
Hungary has expressed strong interest in receiving more EU funds to protect its borders from illegal migrants and to pay third countries to prevent migrants from entering Europe. The revised EU budget includes an additional 15 billion euros for such policies, in addition to the 50 billion for Ukraine.
To create further incentives for Hungary to agree to the deal, the Commission has unblocked Hungary’s access to 10 billion euros of EU cohesion funds, which were previously frozen due to concerns about Hungary’s adherence to the rule of law. This move came after Hungary’s parliament passed laws to improve the independence of the courts.
In response to questions about whether the EU had a backup plan if Hungary blocked the use of the common EU budget, Hahn indicated that the Commission always has alternative plans but did not want to speculate on them to avoid creating an exit opportunity.
When asked if the other 26 EU countries could provide the funding through an intergovernmental agreement, Hahn confirmed that it is a possibility, but expressed doubt that Hungary would choose to isolate itself from the international community.
($1 = 0.9269 euro)
(Reporting by Jan Strupczewski)
