The key obstacle to the adoption of proposed solutions has been Hungary, which previously vetoed the transfer of EUR 50 billion in aid to Ukraine and the budget revision.
The proposal on the table allocates EUR 50 billion for Ukraine (EUR 17 billion in grants and EUR 33 billion in loans) until 2027. It also includes a draft revision of the EU budget for 2021-2027, featuring additional funds for migration and border management, the neighborhood policy, and the European Defense Fund.
Hungarian Prime Minister Viktor Orban's veto in December prompted European Council President Charles Michel to convene a special EU summit on February 1 to seek a resolution. The central challenge is to overcome Orban's opposition.
As an alternative, the EU is exploring a scenario where 26 countries agree on aid to Ukraine without Hungary's participation.
However, this presents political and logistical challenges, as an agreement among 26 of the EU's 27 members would be "off-budget" and require ratification by the parliaments of member states.
Conditions set by Hungary include annual reviews of aid to Ukraine with a unanimous vote, allowing Budapest to block aid each year.
Hungary also seeks an extension of the time limit on disbursements from the Reconstruction Fund and opposes participating in paying interest on loans collected by the European Commission.
(jh/gs)
Source: PAP, IAR