The EU can override Hungary's veto and help Ukraine with money from the stabilization fund - head of the Finnish central bank
The ESM, which contains 80 billion euros, can become a "plan B" to help Ukraine
The head of the Finnish central bank and former European Commissioner Olli Rehn believes that the European Union can override Hungary's veto on financial support for Ukraine by redirecting 80 billion euros from its stabilization fund to help Kyiv.
Source. The financier said this to Bloomberg on Thursday.
In his opinion, it is the redirection of billions that are mostly lying idle in the European Stabilization Mechanism that could become a "plan B" in helping Ukraine.
The ESM was created 11 years ago, when Olli Rehn was European Commissioner for Economic Affairs.
"We don't have an urgent need for ESM funds in the financial markets, but we have a fundamental, existential urgency for Ukraine. This is a matter of freedom, democracy and defense of Europe," said Olli Rehn.
"I am very concerned about the disunity of Europe and Hungary's veto. We cannot delay any longer, the remaining 26 EU countries must quickly coordinate and prepare a 'plan B' without the consent of Hungary, which seems to want to go its own way," added Rehn.
Last week, the EU summit decided to officially invite Ukraine (as well as Moldova) to join the EU accession talks, but failed to approve the €50 billion in economic aid to Ukraine that was supposed to be included in the EU budget plan for the next four years.
The aid to Ukraine was blocked by Hungarian Prime Minister Viktor Orban, who is trying to get Brussels to unfreeze billions of euros intended for Hungary, which the European Commission froze, accusing Orban and his party of violating the rule of law and separation of powers.
The EU plans to discuss economic aid to Ukraine again at an extraordinary summit on February 1.
The European Stabilization Mechanism was established in 2012 as a fund to help euro zone countries facing serious financial problems. The fund has more than €80 billion in reserves, and according to its director Pierre Grameny, it has approximately €620 billion of demand capital guaranteed by the countries of the union.
Background. It has also been reported that the EU is considering depriving Hungary of its voting rights to unblock aid to Ukraine.
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