EU turns to ‘plan B’ for Kyiv after veto
The European Union has begun work on a “plan B” to bypass Hungary’s veto after its prime minister, Viktor Orban, blocked a €50 billion (NZ$87.7b) aid programme for Ukraine.
European Commission President Ursula von der Leyen hailed an earlier decision to open talks with Ukraine as a historic step, and pledged to come up with a new funding plan that Orban would not be able to block.
EU leaders will meet again early next year to try to agree on Ukraine grants and loans.
Von der Leyen warned Hungary that it was “now necessary to work on political alternatives” to frustrate any Orban veto. “We will use the time to ensure that whatever happens we will have an operation solution.”
Orban’s veto is a blow to Ukraine’s President Volodymyr Zelenskyy because the Brussels delay, caused by wrangling over a boost to the EU’s overall budget that requires unanimous support from the 27 member states, follows a deadlock in Washington over further aid for Ukraine.
Talks broke down at a European Council meeting as Orban blocked the move, with all 26 other EU governments against him.
He has demanded the release of nearly €22b (NZ$38.6b) in EU funds for Hungary, frozen by von der Leyen in rule of law disputes with Budapest.
This week, the commission released €10.2b (NZ$17.9b) in suspended funding after Hungary passed special “enabling” legislation. But Orban is demanding a further €11.5b (NZ$20.1b) in regional aid, and €10.4b (NZ$18.2b) withheld in pandemic recovery loans or grants.
Further isolating the Hungarian leader, Russia congratulated him on blocking the funding, at a time when Putin has vowed to step up the war against Ukraine. “Hungary ... firmly defends its interests, which impresses us,” said a Kremlin spokesman.
Zelenskyy has accused Orban, the European leader closest to Putin, of acting on behalf of Russia.
Other leaders reassured Ukraine that the aid programme was still in play, noting that if Hungary continued to block it, there were ways for the EU to bypass Orban’s veto.
There is cautious optimism that Orban will back down again, after he left the meeting in Brussels in a pre-arranged move, allowing the EU to open membership talks with Ukraine in his absence.