Hungary has officially refused to issue Eurobonds to support Ukraine, depriving the EU of a potential "plan B" if it fails to find a way to use frozen Russian state assets to finance a €165 billion loan to Kyiv. This was reported by Politico, informs UNN.
Details
It is noted that the European Commission wants the 27 EU member states to agree at a summit later this month to support Kyiv's ailing economy with a loan based on frozen Russian central bank reserves. Belgium is strongly resisting, as it holds the lion's share of these funds and fears it will face liability if the Kremlin sues.
Eurobonds would provide an alternative funding stream for Ukraine, but Budapest rejected the idea of issuing joint debt backed by the EU's seven-year budget
It is indicated that Hungary's refusal came hours before a dinner between German Chancellor Friedrich Merz and Belgian Prime Minister Bart De Wever in Brussels to discuss the loan.
"On Wednesday, the European Commission proposed Eurobonds as one of two options, along with a Russian asset-backed loan, to ensure that Ukraine's military budget does not run out by next April. However, raising debt through the EU budget to support Ukraine requires a unanimous vote. Hungary's refusal now raises the stakes for what is expected to be intense negotiations on the loan before EU leaders gather in Brussels on December 18," the article says.
Recall
Belgian Prime Minister Bart de Wever stated that he hopes for a "fruitful discussion" with German Chancellor Friedrich Merz on Friday regarding the EU's plan to use frozen Russian assets to support Ukraine.
Earlier, German Chancellor Friedrich Merz canceled a trip to Oslo and will arrive in Brussels on Friday for a private dinner to persuade the Belgian leadership to support a "reparations loan" to Ukraine of 165 billion euros, using the monetary value of frozen Russian state assets located on Belgian soil.