EU considering plan to help Ukraine bypass Hungary's veto

The European Parliament decided to transfer EUR 50 billion to the Ukrainian Fund. The money will be allocated to support the reconstruction, and modernization of Ukraine in 2024-2027. Despite this, Hungarian Prime Minister Viktor Orban has refused to supply Kyiv with weapons and may veto aid. How the EU plans to bypass Orbán's veto?

The EU plans to bypass Viktor Orban's veto

European Union countries are considering a contingency plan to provide Ukraine with much-needed help in its fight against Russia in case Hungary vetoes the current 50 billion euro aid package. This was reported by the American agency Bloomberg, citing sources in the EU leadership.

The US agency, citing people familiar with the negotiations, said the proposal would include national guarantees for member states to obtain financing on the markets if Budapest blocks the review of the EU's multiannual budget, which includes the package and requires unanimity.

Instead, Hungarian Prime Minister Viktor Orban refused to deliver weapons to Kyiv and repeatedly stated that the Ukrainian counteroffensive was doomed to failure, "upsetting other EU capitals". Orban is in no rush to support the new EU aid package for Ukraine.

Bloomberg notes that some countries support finding an alternative financial solution for Ukraine as soon as possible in order to increase pressure on Hungarian Prime Minister Viktor Orbán.

Concerns about a possible Hungarian veto and speculations about its circumvention emerged after Budapest called for a comprehensive debate on the effectiveness and durability of the current EU strategy towards Ukraine.

Hungary will receive previously frozen EU funds

The European Commission is preparing to transfer billions of euros from EU funds to Hungary, which are currently frozen due to problems with respecting the rule of law in the country. The European Union authorities expect that after this time, Viktor Orbán will support the Commission's proposal to increase the European Union budget and grant significant financial assistance to Ukraine, sources tell the Financial Times.

Earlier, Hungarian Prime Minister Viktor Orbán threatened that he would not agree to any increase in the EU budget until Hungary gained access to the funds frozen by the EU in December 2022. The British publication called the release of funds a victory for the Hungarian Prime Minister.

The European Commission intends to unlock around EUR 13 billion by the end of November, three sources tell the Financial Times. According to two of them, the allocation of funds was partly due to the desire to gain Orbán's support for increasing the EU budget.

In December 2022, the EU froze EUR 22 billion from the Cohesion Fund allocated to Hungary. The reason for freezing the funds was the EU's decision that Hungary did not respect the principles of respect for human rights and the rule of law. Cohesion funds are intended to help less developed members of the 27-nation and fill the investment gap and improve infrastructure. In May, in response to Brussels' demands, Hungary carried out a judicial reform that would enable the European Commission to unlock EUR 13 billion - more than half of the frozen funds - notes the British publication.