Ukrainian and EU flags, photo: Getty Images
According to the Financial Times, the European Union is preparing a backup plan to provide Ukraine with 20 billion euros, overcoming the objections of Hungarian Prime Minister Viktor Orban.
Source : FT, Radio Liberty
Details : According to this report, the proposed mechanism could be used if Orbán's veto cannot be overridden at the summit scheduled for February 1.
This scheme will involve member states providing guarantees to the EU budget, which will allow the European Commission to borrow up to 20 billion euros on capital markets for the benefit of Kyiv. Specific terms are still being discussed, and the final amount will be determined in accordance with the needs of Ukraine, the article states.
The scheme is similar to the one used in 2020, when the European Commission provided up to €100 billion in funding to EU countries during the COVID-19 pandemic.
The Financial Times notes that it is important that this option does not require guarantees from all 27 EU member states – that the main participants include countries with the highest credit ratings. This would allow the EU to bypass Hungary's veto – it would not require unanimous support.
Some countries, notably Germany and the Netherlands, will need parliamentary approval to issue national guarantees, a process that officials hope to complete in time to provide aid to Ukraine before March.
Let us remind you : Foreign Minister Dmitry Kuleba is convinced that the EU will in any case decide to allocate 50 billion euros to Ukraine.
The President of the European Council, Charles Michel, after the completion of negotiations between EU leaders on December 14-15, said that Hungarian Prime Minister Viktor Orban did not allow the EU to adopt a budget decision that would include a medium-term assistance program for Ukraine worth 50 billion euros.
In this regard, the leaders agreed on an extraordinary summit dedicated to this issue, which will take place on February 1 .
Read also: Orban's defeat or Ukraine's victory? Details and consequences of the decision of the historic EU summit .
