Copyright © 2024 Euromaidanpress.com

The work of Euromaidan Press is supported by the International Renaissance Foundation

When referencing our materials, please include an active hyperlink to the Euromaidan Press material and a maximum 500-character extract of the story. To reprint anything longer, written permission must be acquired from [email protected].

Privacy and Cookie Policies.

FT: EU crafts €20 bn plan B for Ukraine aid to bypass Hungary veto

The EU is working on a 20 billion euro backup aid package for Ukraine using a debt structure that avoids needing Hungary’s approval, after a proposed 50 billion euro four-year package was vetoed by Hungary, as per FT sources.
EU Ukraine flags
Ukraine, EU flags on Kyiv’s central street Khreshchatyk. Credit: giz.de
FT: EU crafts €20 bn plan B for Ukraine aid to bypass Hungary veto

The EU is devising a €20bn back-up plan for Ukraine, bypassing concerns from Hungary’s Viktor Orbán, Financial Times reports citing its sources.

EU leaders couldn’t agree on a €50bn package for Ukraine due to Orbán’s veto, prompting the search for alternatives to avert a potential budget crisis in Kyiv.

Orbán vetoes EU’s €50 bn Ukraine aid after EU open door to Ukraine’s membership

Officials involved in talks said one model funded by debt has gained traction as the most practical way to provide support if Orbán refuses to drop his veto at a planned summit on February 1,” Financial TImes wrote.

EU member states would provide guarantees to the EU budget, enabling the European Commission to borrow up to €20bn for Ukraine next year. Terms are still under discussion, with the final amount based on Ukraine’s needs, according to unnamed officials cited by FT.

This option wouldn’t require guarantees from all 27 EU member states, allowing to bypass Hungary’s veto. Some nations, such as Germany and the Netherlands, may need parliamentary approval for their guarantees.

This scheme excludes grants, unlike the initial EU budget proposal, focusing solely on loans. Member states retain the option to provide grants bilaterally.

One backup option is extending the current funding structure with low-interest loans for up to a year, requiring a majority vote. Yet, officials prefer gaining approval for the original aid package proposed in June, initially blocked by Hungary.

You could close this page. Or you could join our community and help us produce more materials like this.  We keep our reporting open and accessible to everyone because we believe in the power of free information. This is why our small, cost-effective team depends on the support of readers like you to bring deliver timely news, quality analysis, and on-the-ground reports about Russia's war against Ukraine and Ukraine's struggle to build a democratic society. A little bit goes a long way: for as little as the cost of one cup of coffee a month, you can help build bridges between Ukraine and the rest of the world, plus become a co-creator and vote for topics we should cover next. Become a patron or see other ways to support. Become a Patron!

To suggest a correction or clarification, write to us here

You can also highlight the text and press Ctrl + Enter

Please leave your suggestions or corrections here


    Euromaidan Press

    We are an independent media outlet that relies solely on advertising revenue to sustain itself. We do not endorse or promote any products or services for financial gain. Therefore, we kindly ask for your support by disabling your ad blocker. Your assistance helps us continue providing quality content. Thank you!

    Related Posts