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Ukraine crisis

EU leaders seal €50bn Ukraine aid deal after Hungary lifts veto

The European Union sealed a deal at a summit in Brussels on Thursday to provide Ukraine with a €50 billion support package to prop-up its war-ravaged economy. The surprise move came after Hungary's Viktor Orban lifted his opposition.

Hungary's Prime Minister Viktor Orban attends a European Union leaders summit, in Brussels, Belgium December 14, 2023.
Hungary's Prime Minister Viktor Orban attends a European Union leaders summit, in Brussels, Belgium December 14, 2023. REUTERS - YVES HERMAN
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European Council President Charles Michel said the agreement was reached within the first hour of the summit.

It "locks in steadfast, long-term, predictable funding for Ukraine" and demonstrates that the "EU is taking leadership and responsibility in support for Ukraine; we know what is at stake", Michel said in a post on X.

The package will plug holes in the Ukrainian government's budget to allow it to pay salaries and services, as its soldiers battle to hold back Moscow's forces.

Ukrainian President Volodymyr Zelensky also welcomed the move, calling it a "very important decision".

Thursday's abrupt about-face from Hungarian Prime Minister Viktor Orban on the four-year funding package for Kyiv came after EU leaders offered a possible review of the spending in two years.

In December, Orban sparked fury from his 26 counterparts in the bloc by thwarting a deal on the aid.

 

Pressure

Thursday's talks were expected again to see hours of protracted political arm-wrestling but a deal was swiftly announced after Orban met first with the leaders of Germany, France, Italy and the EU institutions.

"He gave some ground," said one European diplomat. "He saw that people were growing irritated, that there was a line not to cross."

The Hungarian nationalist had been accused of holding Ukraine's future hostage in a bid to blackmail Brussels into releasing billions of euros in frozen EU funds for Budapest.

While there was no suggestion of a direct quid-pro-quo, Orban did win assurances that Brussels would handle the question of Budapest's blocked funds worth €20 billion with impartiality, the diplomat said.

Orban said Hungary had been worried that EU money intended for Hungary would go to Ukraine. "We finally negotiated a control mechanism to guarantee that the money would be used sensibly, and we received a guarantee that Hungary's money would not end up in Ukraine" he said.

Give and take

"What Orban wants is not to be put in a corner," said another European diplomat. "It was a case of give and take. This was not about strong-arming, or threats. Everyone behaved constructively."

But Orban had kept up the pressure on the bloc right up until the last minute.

On the eve of the summit he posted a brash message on social media: "We will stand up for the voice of the people! Even if the bureaucrats in Brussels blackmail us".

A populist leader with the closest ties to Russia, Orban is angry at the European Commission’s decision to freeze his government’s access to some of the bloc’s funds over concerns about the alleged democratic backsliding.

In response, Hungary has vetoed statements at the EU on a range of issues, including membership discussions for Sweden to join the NATO military alliance.

Political games

On the way into their meeting on Thursday, several EU leaders had lashed out at Orban, accusing him of playing political games that undermined support for Ukraine and the country's economy.

"There is no problem with the so-called Ukraine fatigue issue. We have Orban fatigue now in Brussels," Polish Prime Minister Donald Tusk told reporters Thursday. 

Mounting frustration at Hungary's role as spoiler had seen calls grow from other leaders to unleash the EU's Article 7 and strip Budapest of its voting rights. 

That would take unanimity from all other 26 leaders and few have been willing to push publicly for this "nuclear option" just yet.

(with AFP)

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