Brussels proposes $18 billion in aid to Ukraine, but Hungary threatens to veto

This European Commission An unprecedented aid package was proposed Wednesday Ukraine It will reach 18 billion euros by 2023.The goal is to help the Kyiv government Paying wages, pensions and maintenance of energy infrastructure Or society in the war of Russian aggression. and guarantee “stable” and “predictable” financing flows, Unlike what happened in the first year of the conflict.

However, the community exec’s plans conflict with the threat of a veto Hungary. your foreign minister, Peter Szijjarto said on Monday that his country would continue to provide bilateral aid to Ukraine, but would not authorize it EU has no new co-borrowing initiative. Therefore, the government of Victor Orban is pressing for the lifting of obstacles to its recovery plan, which Still not ratified as Brussels doubts respect for rule of law in Hungary.

the commissioner in charge of the budget, Johannes Hahnhas said that he still hopes to find a “Positive Solutions”. The Community Executive intends to approve this aid package in Ecofin in December, and First tranche of aid disbursed in January 2024.

[Bruselas propone congelar 7.500 millones de fondos europeos a Hungría por fraude y corrupción]

In order to grab 18 billion euros in the market, Brussels intends to Use the EU budget as collateral, which requires the unanimous consent of twenty-seven people.Hahn explained that this solution is easier and more robust than requiring member states to provide guarantees, and will not increase public debt.

The money will be paid to Kyiv in several instalments in the form of soft loans. The credit has a grace period of 10 years and a maturity of 35 years. Member States will be the ones paying the interest rates.

In exchange for the money, the EU will demand a series of sectoral and institutional reforms in Ukraine, especially in the areas of combating fraud and corruption and strengthening the rule of law. However, the community executive assured it would be “realistic and flexible” because “Ukraine is a country at war.

The EU has mobilized a total of 19.7 billion euros in aid to Ukraine since the war began, according to Brussels.But most of the money is provided through decision-making ad hoc. Ukrainian President Volodímir Zelenski had asked the committee chairman Ursula von der Leyen to be more stable in payments.

Russian-Ukrainian War