EU plans to provide Ukraine with €20 billion, bypassing Orbán's objection – FT
The Financial Times has reported that the European Union is preparing a backup plan to provide Ukraine with €20 billion, bypassing Hungarian Prime Minister Viktor Orbán's objections.
Source: FT; Radio Liberty
Details: The proposed mechanism could be used if Orbán's veto cannot be overridden at a summit scheduled for 1 February.
This scheme will involve the provision of guarantees to the EU budget by the participating states, enabling the European Commission to borrow up to €20 billion on the capital markets in Kyiv's interests. Specific terms are still being discussed, and the final amount will be determined according to Ukraine's needs.
The scheme is similar to the one used in 2020 when the European Commission provided up to €100 billion in funding to EU countries during the COVID-19 pandemic.
The Financial Times emphasised that the important thing is that this option does not require guarantees from all 27 EU member states, as the main participants are countries with the highest credit ratings. This would allow the EU to bypass Hungary's veto as it would not require unanimous support.
Some countries, including Germany and the Netherlands, will need parliamentary approval to provide national guarantees. Officials hope to complete such a process in time to provide assistance to Ukraine by March.
Background:
- Foreign Minister Dmytro Kuleba is convinced that the EU will, in any case, decide to allocate €50 billion to Ukraine.
- Following the EU leaders' talks on 14-15 December, European Council President Charles Michel said that Hungarian Prime Minister Viktor Orbán had not allowed the EU to adopt a budget decision that would have included a €50 billion medium-term assistance programme for Ukraine.
- In this regard, the leaders agreed to hold a special summit on this issue on 1 February.
Read more on this topic: Orbán's defeat or victory for Ukraine. Why is EU summit historic?
Support UP or become our patron!
