EU Leaders Agree on 50 Billion-Euro Support Package for Ukraine’s Economy
BRUSSELS (AP) — In a significant breakthrough, European Union (EU) leaders came to a unanimous agreement on Thursday to provide Ukraine with a new 50 billion-euro ($54 billion) support package for its war-ravaged economy. This decision follows Hungary’s withdrawal of its threats to veto the move, allowing the EU to move forward with the vital financial assistance.
Announcing the deal during the summit in Brussels, European Council President Charles Michel hailed the agreement as a significant step forward. Michel emphasized that the agreement guarantees steadfast, long-term, and predictable funding for Ukraine, showing that the EU is taking both leadership and responsibility in supporting Ukraine during its time of need.
Financial Support to Bolster Ukraine’s Economy
The support package is expected to provide Ukraine with the much-needed boost to recover its economy, which has been severely affected by the devastating war. Upon endorsement by the European Parliament in March, Ukraine could receive the first tranche of funds. The package is part of a review of the EU’s ongoing seven-year budget, which requires unanimous approval.
Hungary’s Surprising Change of Heart
Hungarian Prime Minister Viktor Orbán’s decision to lift the veto on the financial aid package came as a surprise. In the past, Orbán had raised strong objections to the assistance and had even blocked its adoption. He had also threatened to do the same in recent days. Hungary has been in a dispute with the European Commission over allegations of democratic backsliding, which resulted in the withholding of some of its own funding.
The breakthrough in negotiations came after a series of talks between Orbán and a few other leaders on the eve of the summit. Diplomats worked tirelessly throughout the night to streamline the final wording of the agreement. Ultimately, a small-group meeting on Thursday, including Orbán along with other key EU leaders, sealed the deal within minutes, much to everyone’s surprise.
Easing Concerns and Ensuring Ukraine’s Stability
The agreement to provide financial support to Ukraine also includes making Ukraine a candidate for EU membership, a move that Orbán had initially resisted but reluctantly accepted. The EU leaders are hopeful that the continued financial aid for Ukraine will strengthen the country’s economic and financial stability. They recognize that this support, alongside military assistance and sanctions pressure on Russia, is critical to maintaining security across Europe.
Orbán’s Perspective and Hungary’s Priorities
Hungarian Prime Minister Viktor Orbán referred to the agreement as a victory, emphasizing that a review mechanism attached to the funding package will ensure the responsible allocation of funds. Orbán also highlighted that the EU funds denied to Hungary would not be transferred to Ukraine, addressing one of his major concerns.
Orbán’s government has consistently stood up against certain EU decisions, including the freezing of the country’s access to joint funding and vetoing statements on various issues. The ongoing dispute has also affected Hungary’s relationships within NATO, as it had blocked high-level meetings with Ukraine and has stalled Sweden’s bid for NATO membership.
Leaders Express Frustration with Orbán’s Tactics
The Hungarian leader’s approach has drawn criticism from other EU leaders, with accusations of blackmail and playing political games. There has been growing concern that public support for providing financial aid to Ukraine has started to wane, despite the potential threat to European security in the event of a Russian victory.
In expressing her frustration, Estonian Prime Minister Kaja Kallas referred to Orbán’s actions as being of a blackmailing nature. She reminded Orbán of the benefits that being part of the European Union brings to Hungary, and suggested that he should also consider the advantages of Hungary’s EU membership.
Continued Support for Ukraine’s Future
The EU leaders’ unanimous agreement on the 50-billion euro support package for Ukraine’s economy is seen as a crucial step towards bolstering the country’s economic and financial stability. It demonstrates the EU’s commitment to support Ukraine in its recovery and showcases its willingness to take on a leadership role. With the first tranche of funds expected as early as March, Ukraine can now look forward to a brighter and more stable future.
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