EU prepares €50 billion backup plan for Ukraine to avoid dependence on Hungary's position - Bloomberg
Budapest won't agree to approve Ukraine initiatives until EU unblocks financial aid to Hungary
In order not to depend on Hungarian Prime Minister Viktor Orban's position on providing economic assistance to Ukraine worth 50 billion euros, the EU has decided to prepare a backup plan.
Source. Bloomberg reports, citing people familiar with the situation.
The plan provides for the provision of state guarantees by the member states of the bloc to raise the necessary funds in the capital market. This way, they will be able to raise money if Hungary blocks the adoption of the package that provides funding for Ukraine for 2024-2027.
Orban is delaying the approval process, counting, in particular, on Brussels unblocking part of the 22 billion euros allocated to Hungary from the EU budget.
The money has not reached Budapest: The European Commission accused the Hungarian authorities of not respecting the rule of law and insufficient protection of human rights, demanding reforms.
Orban has previously stated that he will not approve an increase in the EU's general budget (which is largely needed to ensure payments to Ukraine) as long as the funds earmarked for his country are frozen.
A month ago, Hungarian officials said that 25 billion euros would be enough for Ukraine for now, and that in two years it would be possible to reassess its needs.
This week, they told their counterparts from other countries that they would like to assess the scale of the financial assistance, its effectiveness, and risks such as corruption in Ukraine, Bloomberg reports.
On Wednesday, the European Commission recommended starting formal talks with Ukraine on its accession to the EU, but the next day Orban's chief of staff said the EU should not do so. Hungary is considering a "privileged partnership" option for Ukraine, rather than full membership.
Background. As a reminder, a political adviser to the Hungarian government said that Hungary would block the start of negotiations on Ukraine's accession to the EU.
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