EU ‘confident’ of Hungary deal on Ukraine aid, but uncertainty remains

European Commission President Ursula von der Leyen told a European Parliament plenary on Wednesday (17 January) she was “confident” of getting Hungary to drop its Ukraine aid veto at a decisive summit on 1 February, but Budapest’s new alliance-in-the-making could still complicate things.

“I am confident that a solution at [EU] 27 is possible,” von der Leyen said in Strasbourg.

Hungary’s Prime Minister Viktor Orbán refused in December to sign off on the financial assistance package, intended to fund Ukraine’s government over the next four years.

Since then, pressure has been growing on Budapest to lift its Ukraine funding veto.

EU26 vs 1?

EU ambassadors are expected to meet on Thursday (18 January) in another attempt to trash out an acceptable agreement.

Budapest has signalled it could be in the mood to compromise, along the lines of a proposal prepared by EU officials and reported by Euractiv last week, and might agree to the aid if it is given the chance each year to veto further payments.

EU officials say that if they cannot win over Hungary for a unanimous decision, the remaining EU26 would be willing to look to provide cash directly, outside the EU’s budget.

Such a step, however, would take more time and technical work.

The majority of EU member states would prefer an EU27 option, several EU diplomats told Euractiv earlier this week, with some adding that “at best” there could be a consensus for the floated compromise with a mid-term review and ’emergency break’.

“But we won’t give them a potential veto every year (…) We don’t see them anymore as a partner and we are willing to show the repercussions for such behaviour,” one of the EU diplomats said.

However, while Orbán stood alone in December, a question raised in Brussels is whether he will remain alone in February.

Slovakia’s Prime Minister Robert Fico came to Orbán’s defence on Tuesday (16 January), criticising Brussels for trying to “punish” Hungary over its stance on funds for Ukraine.

“As long as I am the head of the Slovak government, I will never agree that a country should be punished for fighting for its sovereignty. I will never agree with such an attack on Hungary,” Fico said, standing alongside Orbán after bilateral talks in Budapest, Hungarian media reported.

“If we don’t stand up to this policy that whoever has a different opinion and doesn’t respect one opinion is excluded from good society, then God save the European Union,” Fico said.

Orbán reiterated on Tuesday that “if we want to help Ukraine, which is necessary, we must do it in a way that does not damage the EU budget”, adding that if the EU does not accept his proposal, he “will be forced to stop this process.”

Frozen funds

Last month, the EU executive had come under fire for unlocking €10 billion in frozen EU funds for Hungary as it sought to win over Orbán before the December summit.

EU lawmakers in Strasbourg urged von der Leyen not to cave into “blackmail” from Orbán, after they have also threatened this week a possible lawsuit against the Commission over the release of the funds.

Von der Leyen defended the decision to release the €10 billion to Hungary, arguing that Budapest had passed a new law on judicial reform, something requested by Brussels, to get the funds.

“At the same time, around 20 billion euros remain frozen. They are suspended for reasons that include concerns on LGTBIQ rights, academic freedom and asylum rights,” von der Leyen told EU lawmakers.

She added that funds held up by Brussels “will remain blocked until Hungary fulfils all the necessary conditions” but then left Strasbourg shortly after the subsequent debate in the plenary began.

[Edited by Zoran Radosavljevic]

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