Difficult negotiations are continuing between the Member States on the arrangements for multiannual financial aid to Ukraine to the tune of €50 billion over the 2024-2027 period, with an outcome not expected before the extraordinary European summit scheduled for Thursday 1 February.
These discussions focus primarily on a solution for twenty-seven Member States based on the European Union budget, even if some countries are expressing weariness with Hungary’s transactional attitude.
“We can clearly see that around the table, the length of the blockade has led some people to talk about more radical solutions”, said a French diplomatic source at the Élysée Palace on Monday 29 January, referring to an article in the Financial Times suggesting possible retaliatory measures against Budapest in the event of a persistent blockade. And added: “This is not an EU of arbitrary political decisions. But we are working towards a solution involving 27 countries, and we hope that the Hungarian Prime Minister will do likewise”.
For Belgium’s Minister of Foreign Affairs, Hadja Lahbib,”the most important thing is to reach an agreement with all twenty-seven countries”. “We will work hard to achieve this, because it is our priority”, she said, asking to wait until the end of the European summit to see what action to take depending on the results, or lack of results.
The negotiations include the arrangements for an annual review of the implementation of the ‘Ukraine Facility’, the instrument which will be responsible for implementing this aid and ensuring that the EU’s financial interests are respected (see EUROPE 13325/1). Hungary would like this review to take place on the basis of unanimous decisions by the Member States. This request is not acceptable to the other Member States, as any macro-financial aid from the EU to a third country is decided by a qualified majority of Member States.
The Hungarian authorities are also requesting that payments under the national post-Covid-19 recovery plan as part of the Next Generation EU Recovery Plan be allowed to continue beyond 2026, the deadline laid down in EU law, while implementation of the Hungarian plan has been delayed. They are also reluctant to contribute to the interest payments generated by the joint loan to finance the European Recovery Plan. The EU countries retort that Hungary can hardly avoid it, as it receives funding under the ‘REPowerEU’ chapter of the Hungarian plan.
On Thursday, the Heads of State or Government will also take stock of the EU’s military aid to Ukraine. On the fringes of the European Council, French President Emmanuel Macron will hold talks with the President of the European Commission, Ursula von der Leyen (see other news). (Original version in French by Mathieu Bion with Camille-Cerise Gessant and Nithya Paquiry)