After weeks of impasse, European Union leaders appealed to Hungarian Prime Minister Viktor Orban and agreed on Thursday to create a 50 billion euro fund for Ukraine, providing a critical lifeline to a country threatened with financial crisis in the middle of war. with Russia.
This breakthrough was particularly significant for both Ukraine and the European Union. For Ukraine, which desperately needs money to maintain basic services, it has offered stability and reassurance while U.S. aid is blocked in Congress.
For the EU, it demonstrated European determination to remain united in supporting Ukraine against Russia, even if the United States falters, as well as its determination to bring an often obstructionist Mr Orban to heel.
As small as his country is, the Hungarian leader has established himself as a major opponent of EU rules and norms, drawing both reprimands and financial sanctions from his partners. Mr Orban has also been a major obstacle to many European ambitions, including some sanctions against Russia and even Sweden’s bid for the NATO alliance.
He has repeatedly used the EU’s requirement for unanimity to push Brussels into concessions, including unfreezing withheld funds, to encourage it to undertake democratic reforms.
Before Thursday’s meeting, Mr Orban had demanded an annual opportunity to veto the payment of money to Ukraine, which is to be distributed in the form of loans and grants over the next four years. But this request was rejected. Instead, the leaders agreed to a regular review of how the money was spent to allay concerns about misappropriation or corruption, EU officials said.
Under the agreement reached on Thursday, the European Commission, the EU’s executive body, will produce an annual report on how the Ukrainian fund is used. European leaders will have the opportunity to debate its performance and express their concerns about it.
The European Parliament must approve the fund by a simple majority, a bar that should be easily cleared, and the vote could take place as soon as this month.
It appears that Mr. Orban received nothing substantial in return for dropping his veto on the fund, valued at around $54 billion.
“The 27 leaders agreed on an additional support package of 50 billion euros for Ukraine under the EU budget,” said European Council President Charles Michel. said on social media just an hour after the start of Thursday’s meeting. “This ensures stable, long-term and predictable funding,” he added. “The EU assumes leadership and responsibility in supporting Ukraine; We know what’s at stake.”
Negotiations were deadlocked and the mood toward Mr. Orban, Russian President Vladimir V. Putin’s closest ally in the European Union, had deteriorated since Mr. Orban blocked the first attempt to introduce the fund for Ukraine in December.
Mr. Orban’s long-term obstruction of European Union support for Ukraine has annoyed his European partners. Since the start of the war, it has delayed or watered down its support for Ukraine, including some sanctions against Russia.
The Hungarian leader, who appears to relish his disruptive role, said his resistance stems from a fundamental disagreement with other European leaders: he does not believe Russia poses a threat to Europe’s security, and he does not I also don’t think the European Union should be putting all its weight behind Ukraine.
But Mr. Orban regularly uses his leverage within the bloc – often his ability to veto decisions that require unanimity, such as the introduction of the Ukraine fund – to push for funds he does not want. no longer has access due to a long-standing dispute with the commission over its mandate. domestic policies.
The European Union and Hungary have long clashed over policies relating to the rule of law, corruption and minority rights.
The commission faulted Hungary for, among other problems, the misuse of judicial appointments, which it said interfered with the independence of the courts; laws that discriminate against LGBTQ people; and the denigration of anti-corruption authorities.
The Commission has blocked Hungary from accessing some €20 billion until it can demonstrate that it has changed these policies to bring them into line with EU rules and values.
If Mr. Orban’s demand for an annual veto of the Ukraine fund was an attempt to secure more funding, it failed.
Officials said Thursday that he had only managed to extract a vague reference in the joint conclusions that the leaders would release at the end of their summit on Thursday. This reference would encourage the European Commission to be “proportionate” in the way it freezes the funding of Member States that it punishes for violations, as is the case of Hungary.
Thursday’s quick decision was greeted with relief by some European leaders, weary of endless conflicts with Mr. Orban and eager to avoid a new confrontation that would damage the appearance of unity toward Ukraine.
Shortly after announcing the deal, Dutch Prime Minister Mark Rutte wrote on social networks: “I am delighted that we have reached an agreement on support for Ukraine. This €50 billion package will help us achieve more structure, transparency and predictability in our financial assistance to Ukraine.”
The message was clear, he added: “Ukraine can count on our support, today and in the future.”
The news was warmly received in Ukraine.
“It is very important that the decision was taken by all 27 leaders, which once again proves the strong unity of the EU,” said Ukrainian President Volodymyr Zelensky. wrote on social networks. “The EU’s continued financial support for Ukraine will strengthen long-term economic and financial stability, which is no less important than the military assistance and sanctions imposed on Russia. »
