EU reportedly stalls Hungary rearmament loan over veto on credit for Ukraine
The European Commission has frozen approval of Hungary's rearmament loan plan under the Security Action for Europe (SAFE) programme because Budapest blocked a €90 billion loan for Ukraine.
Source: RMF24, a Polish online news portal, as reported by European Pravda
Details: It became known on 25 March that the European Commission approved the defence plans of France and Czechia, leaving only Hungary's plan frozen among the 19 EU countries that expressed a wish to join the SAFE mechanism.
An unnamed EU diplomat told RMF24 that the unofficial reason for the delay is Hungary's blocking of the €90 billion loan for Ukraine.
Quote: "It is difficult for the European Commission to agree to billions of euros for Viktor Orbán when he is violating the principle of loyal cooperation and blocking money for a country that is fighting Russia."
More details: Budapest is "very interested" in receiving funds under the SAFE programme and is demanding more than €1 billion above what Brussels is offering.
European Commission spokesperson Thomas Regnier told European Pravda's correspondent that the plan for Budapest is still being assessed and will be approved as soon as that assessment process is complete.
Background:
- Hungarian Prime Minister Viktor Orbán before the start of the European Council meeting on 19 March said that Hungary will not unblock any decision favourable to Ukraine until the flow of Russian oil through the Druzhba pipeline is restored.
- Hungarian Foreign Minister Péter Szijjártó has claimed that Ukraine will be forced to restore supplies of Russian oil via the Druzhba pipeline because it is running short of money.
- On 25 March, Orbán announced that Hungary will wind down gas supplies to Ukraine if the transit of Russian oil through the Druzhba pipeline is not restored.
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