From late morning, This On Thursday, European leaders reached an agreement among twenty-seven on 50 billion euros in aid for Ukraine, until then blocked by the Hungarian Prime Minister, Viktor Orbán. “This agreement guarantees stable, predictable and long-term financing for Ukraine,” said Charles Michel, president of the European Council.
The president of the commission, Ursula von der Leyen, welcomed “a good day for Europe”, and Emmanuel Macron concluded that “Russia cannot count on any fatigue among Europeans in their support for Ukraine,” which Moscow has developed in recent months. .
A lot of pressure
The settlement that was reached provides for the possibility to draft an annual report on the use of funds in favor of kyiv and for the leaders to ask the commission for a “review” in two years “if necessary”. Viktor Orbán has until recent days called for an annual review of the use of the aid package and a unanimous vote every year in the following twelve months.
An unacceptable requirement for its twenty-six counterparts who want to give Ukraine predictability. Ambassadors worked on twenty-six intergovernmental mechanisms should Hungary continue its blockade. But in recent weeks the pressure on Budapest has grown enormously.
Public services
The summit was preceded by a meeting around Viktor Orbán that brought together Emmanuel Macron, the head of the Italian government, Giorgia Meloni, as well as the president of the Commission, Ursula von der Leyen, and the president of the European Council, Charles Michel.
This new package for Ukraine (33 billion loans and 17 billion donations) is included in the expansion of the EU budget for 2024-2027. It should allow the Ukrainian state to continue to function and provide public services. Absent quick aid, Kyiv could run out of cash in March while an American aid package is blocked in Congress nine months before the election.
Signal in Washington
“This is an important signal that Europe is sending to the United States, which can no longer argue that the EU is not fulfilling its commitments,” said an adviser to the European leader. Chancellor Olaf Scholz is scheduled to meet Joe Biden in Washington next week.
For the same adviser, “Viktor Orbán has finally realized how far he can go. It can postpone sanctions packages to seek exemptions or amnesties, but it cannot block strategic decisions desired by its twenty-six partners.
All European funds in favor of Hungary are currently frozen to undermine the rule of law (about twenty billion euros). The Hungarian prime minister has achieved nothing in his recent standoff with the Europeans. The summit’s conclusions stress the “objective, fair and impartial” nature of any EU decision on these funds, which Budapest will need to face a truly difficult economic situation. Hungary “did not receive a gift”, assured Emmanuel Macron.
Leaders on Thursday approved a budget expansion planned at their meeting in December but not formalized at the time because of Hungary. 9.6 billion euros for migration policy and 1.5 billion euros for the European Defense Fund, specifically within the new STEP platform designed as an embryo of the European Sovereignty Fund.
New sanctions against Moscow
The EU is also preparing a new package of sanctions against Russia to mark the second anniversary of the February 24 invasion of Ukraine. This thirteenth package will mainly focus on the fight against manipulation of the previous twelve packages.
The Baltic states are calling for a ban on Russian aluminum or LNG imports, but diplomats consider their demands “unrealistic at this stage”. That said, in the past, the Baltic countries have already expressed ideas that became reality a few months later. »
Member states finally approved a plan put on the table by the Commission in December to recognize the Russian central bank’s assets (around 200 billion euros) frozen in Europe and separate income from them. Ultimately, the income from these assets should be taxed and the collected funds transferred to Kyiv. These transfers are estimated to be between 3 and 5 billion euros per year.
