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EU leaders face a new showdown with Hungary as they seek to unblock economic aid to Ukraine

EU leaders face a new showdown with Hungary as they seek to unblock economic aid to Ukraine

The Hindu
Thursday, February 01, 2024 09:40:02 AM UTC

EU leaders gather to provide financial support for Ukraine, but Hungarian Prime Minister Viktor Orban stands in their way.

European Union leaders are gathering on February 1 to shore up financial support for Ukraine. The overwhelming majority of them — from 26 countries — agree that Europe’s security is at stake, and that time is of the essence. Only one, Hungarian Prime Minister Viktor Orban, stands in their way.

Almost two years since Russia invaded, the war has ground to a halt and Ukraine’s war-ravaged economy desperately needs propping up. But political infighting in the EU and in the United States is depriving Kyiv of a long-term source of funding. More than $100 billion is being held up.

In December, the 26 other leaders agreed on a package worth 50 billion euros ($54 billion) for this year through 2027. They also agreed to make Ukraine a candidate for EU membership, which Mr. Orban reluctantly accepted.

“Securing agreement is vital for our credibility, and not least for our commitment to provide steadfast support to Ukraine,” European Council President Charles Michel, who is chairing the summit, said in his invitation letter to the leaders. But the financial package is part of a review of the EU’s continuing seven-year budget, which must be approved unanimously.

Mr. Orban, the EU leader with the closest ties to Russia, is angry at the European Commission’s decision to freeze his Government’s access to some of the bloc’s funds. The executive branch did so over concerns about possible threats to the EU budget posed by democratic backsliding in Hungary.

In response, Hungary vetoed statements at the EU on a range of issues. Mr. Orban also exported the problem to NATO, by blocking high level meetings with Ukraine until only recently. Budapest is also holding up Sweden’s bid for membership in the military organisation. “I don’t want to use the word blackmail, but I don’t know what other better word” might fit, Estonian Prime Minister Kaja Kallas told reporters as she arrived at EU headquarters in Brussels for the meeting.

“Hungary needs Europe,” she said, highlighting the country’s own economic problems and high interest rates. “He should also look into what it is in it for Hungary, being in Europe.”

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