50 billion euros for Ukraine at risk due to EU budget dispute - FT

European Union leaders are embroiled in a financial dispute over the EU budget that threatens 50 billion euros in aid to Ukraine, the Financial Times reports, according to UNN.

Details

"EU member states are far from reaching a deal to replenish the bloc's joint budget - including 50 billion euros for Ukraine - ahead of a summit in Brussels on December 14-15," the newspaper writes, citing officials involved in the discussions.

The EU's efforts to reach a compromise are said to be complicated by the victory of an extreme right-wing party in the Dutch elections last month and a recent German court ruling to limit the government's borrowing. A budget deal will be "very, very difficult," the official said.

Meanwhile, the Biden administration's proposed $60 billion package is having a hard time getting through the US Congress, the newspaper notes.

Hungarian Prime Minister Viktor Orban on Friday again vowed to veto the start of Ukraine's EU membership talks, saying it "contradicts the interests of several member states" and that accession could only become possible "in many years." "We are in good enough shape to dare to say this, no matter what pressure we are under," he said.

"It is very important that the support for Ukraine continues and that we Europeans play our part," Belgian Prime Minister Alexander De Kroo told the Financial Times.

"This is the moment of truth," said an EU official. - "If you say you support Ukraine, you have to take responsibility.

Germany and other states have pledged not to provide Brussels with any additional funds beyond what is needed for Ukraine, while others are demanding more money to address domestic issues such as migration, the newspaper said.

Orban also opposes the funding package. EU officials note that he has caved in on Ukraine in the past and are trying to assess whether there is a price for his support, including releasing some of the €22 billion in EU funds blocked by Brussels over concerns about the rule of law in Hungary.

EU officials said last week that the European Commission was close to unblocking up to €10 billion for Budapest because reforms implemented earlier this year had strengthened the independence of the judiciary.

However, Hungarian officials insist that there is no connection between Ukraine and the funding issue, and EU officials and diplomats say the Hungarian leader seems more intransigent this time around.

"There is a lot of fog that needs to be cleared in the coming weeks. And today the fog is so thick that I can't see very far into the future," De Croo said.

"Brussels' funding for Ukraine has become a political football in the broader debate over EU budget priorities, following the (Euro)Commission's decision to bundle support for Kyiv in a proposal with other funding requests to replenish the 2021-2027 budget," the newspaper writes.

The €50 billion for Ukraine, consisting of €17 billion in grants and €33 billion in loans, was reportedly combined with requests for €15 billion in additional funding for migration, €10 billion for investments in "strategic technologies" and almost €19 billion for interest payments on EU common loans.

According to many people briefed on the private debate, at the last EU leaders' summit in October, German Chancellor Olaf Scholz called the European Commission's calculations "commissioner's calculations".

Officials said that EU budget negotiations will always be difficult, but a compromise is still possible. A revised package is expected to be proposed before the summit, the newspaper writes.

"I think the doom and gloom around this issue is greatly exaggerated," said one EU official who participated in the discussion. - "We will not allow Ukraine to suffer a sovereign default.

Recall

Germany wants to reduce the amount it contributes to the EU fund to help Ukraine.