After weeks of standoff, European Union leaders have agreed to €50 billion aid package for Ukraine. The breakthrough follows Hungary's earlier blockage of the deal.
“We have a deal,” Charles Michel, president of the European Council, said on X. “All 27 leaders agreed.”
Ukrainian President Volodymyr Zelensky welcomed the new funding, saying it would strengthen the country's economic and financial stability.
This news is crucial for both Ukraine and the European Union. The aid package, spanning the next four years, aims to cover essential expenses like pensions, salaries, and other critical costs for Ukraine. The timing is significant as the approval of US military aid for Ukraine, a key contributor to Kyiv's defence, faces delays in the US Congress.
For the EU, it demonstrated European commitment to stand united in support of Ukraine against Russia.
The €50 billion fund, equivalent to about $54 billion, aims to support Ukraine through the end of 2027.
Why was Hungary blocking the deal?
Hungary's Prime Minister Viktor Orban has watered down or blocked most EU measures related to Ukraine, including sanctions against Russia, which require majority support from all 27 member countries.
Orban, Putin's closest—and probably sole—supporter in the European Union, believes Russia poses no threat to Europe. He also argues that his country's foreign policy is entirely up to him and that he will not be forced into supporting measures he disagrees with.
Orban had previously stated that he would only agree to financial support for Ukraine if disbursements were allowed annually by unanimous agreement, effectively giving him a veto power, as reported by the New York Times.
Some critics believe that his purpose is to use Hungary's veto as leverage to unlock billions of euros in EU financing that has been frozen due to Budapest's violations of bloc regulations, according to the report.
However, it is unlikely that EU leaders will accept this suggestion, as it would expose them to an annual veto threat from Hungary.
Prime Minister Orban has become a vocal opponent of EU regulations and conventions, prompting both rebukes and financial penalties from his partners. Orban has also posed a major obstacle to many of Europe's goals, including some sanctions against Russia and Sweden's bid to join NATO. The European Union and Hungary have long disagreed on policies including the rule of law, corruption, and minority rights.
