What will happen if Hungary blocks €50 billion for Ukraine: Ambassador outlined four scenarios
Hungary may once again veto a four-year, €50 billion program from the European Union for Ukraine. Ukraine's Ambassador to the EU, Vsevolod Chentsov, discussed alternative options in case such a decision is made.
He shared this information in an interview with Forbes. According to Mr. Chentsov, the following options are being considered:
– The creation of a Fund for Ukraine, which will operate for four years within the EU budget.
– An off-budget fund to which EU member states can make contributions.
– The European Commission can borrow aid under its guarantee.
– Macro-financial assistance, i.e., periodic borrowing from the European Commission under its guarantee.
The ambassador noted that the first option is more cost-effective and convenient, making it the preferred choice. However, Hungary may exercise its veto power, although playing this card repeatedly may have limitations for any country.
"I think that option A will be adopted," the ambassador said.
He added that the final decision may include safeguards or provisions for the periodic review of indicators. Last year, the EU provided about €18 billion to cover the budget deficit, and this year's figures are expected to be similar. The future amount of borrowing will depend on Ukraine's needs.
"We hope that the economy (of Ukraine - ed.) will start working, and the need for borrowing will decrease," Chentsov concluded.
As a reminder, the Hungarian government continues to create uncertainty regarding the EU's assistance to Ukraine. Orban's office stated that they are still far from reaching an agreement with the EU on new long-term financing.
Earlier, Hungary agreed to unblock the EU's €50 billion aid to Ukraine over four years, subject to an annual review of funding. EU diplomats are skeptical about this proposal, as it might allow Viktor Orban, often referred to as "Putin's friend," to exert pressure on the European Union.
As reported by OBOZ.UA:
On January 13, it became known that a petition to deprive Hungary of the right to vote in the EU Council had already collected the required number of signatures in the European Parliament.
On January 18, the European Parliament adopted a resolution calling for the curtailment of Hungary's rights in the EU. Additionally, the European Parliament urges the European Council to determine whether Hungary has committed "serious and persistent violations of EU values" under Article 7.2 of the EU Treaty. This provision allows for the suspension of voting rights in the EU Council.