Hungary blocks €20 billion aid package for Ukraine, von der Leyen may propose more creative approaches - Politico
Kyiv • UNN
Ursula von der Leyen will present a plan to increase EU defense spending. Hungary is blocking a €20 billion aid package for Ukraine, but may support a general increase in the defense budget.
The President of the European Commission Ursula von der Leyen is set to present her toolkit for increasing EU defense spending today. However, another important item on the agenda of the European Council summit - a massive new influx of aid for Ukraine - is in question, reports Politico, writes UNN.
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"Don't expect the EU to do anything new to fill the void left by the US when European leaders gather on Thursday," the publication writes.
Expect Hungary to take the blame for freezing the €20 billion increase in aid to Kyiv. Budapest may be more agreeable to broader EU defense spending increases, but it is categorically opposed to the aid package for Ukraine.
"A clear reference to the new allocation of military funding, proposed by the head of foreign policy Josep Borrell, was cut from the latest draft conclusions of the Council, which EU ambassadors are set to review today," the publication states.
The change, it is noted, "occurred after Budapest vetoed the previous version during the last meeting of these ambassadors."
The President of the European Council António Costa, in a letter dated March 3, according to the publication, "seems to have acknowledged defeat in his campaign (which included a lengthy lunch in Budapest) to engage Hungarian Prime Minister Viktor Orbán in this aid package." "I note that there is a divergence regarding the path to achieving peace and, in particular, the approach of 'peace through strength,'" Costa wrote to Orbán. At the same time, Costa pointed to a "broad consensus" on the need for Europe to become "more sovereign, more capable, and better equipped" to tackle security challenges.
Orbán and Slovak Prime Minister Robert Fico publicly expressed their objections. "However, diplomats say behind the scenes that other capitals, including Paris, are also pleased to see that the funding package is moving slowly," the publication writes.
Von der Leyen is likely to propose more creative ways to get reluctant member states to support Ukraine rather than provide aid. According to a diplomat, one possibility would be to require that 20 percent of new loans available for defense spending be directed to aid Kyiv.
It is noted that the EU has already allocated €60 billion in military aid to Ukraine for 2025, and this money is not in doubt.
"Although the reference to increased funding from Borrell has disappeared, the wording on security guarantees has been strengthened in the new draft," the publication claims.
Previously, leaders suggested that Borrell "assess the conditions" for contributions to security guarantees. Now the text states that "the European Union and member states are ready to continue to facilitate the provision of security guarantees," the publication writes.
At the same time, France has begun discussing the use of confiscated Russian assets as leverage to force Russia to adhere to a possible ceasefire, reports FT.