The rest of the countries agree to create a financial instrument for kyiv to obtain the funds through also bilateral loans
The countries of the European Union yesterday found a way to unblock the package of 18,000 million euros of aid to Ukraine for next year. A solution with which they circumvent the veto that Hungary maintains on this disbursement as a measure of pressure so that its European partners give, in turn, the green light to the 7,500 million regional funds and another 5,800 million of the post-pandemic recovery plan prepared by Budapest , threatened with freezing for their violations of the rule of law.
The Twenty-seven, except Hungary, agreed by means of a simplified procedure and a “qualified majority” to create a financial instrument that would allow them both to issue debt backed by the European budget -for which they need the support of the country chaired by Viktor Orban-, and to resort to national guarantees, which will allow 26 to make the decision.
As detailed by the European Council in a statement issued yesterday, the agreed solution confirms that support for Ukraine for next year will be 18,000 million euros within the framework of a plan that will include loans with a cadence period of ten years. The EU Member States will cover most of the interest costs through external assigned revenue and the guarantees for that loan will be provided by the EU budget or by the Member States themselves.
The objective of this aid is to guarantee stable and immediate support to Ukraine to respond to its urgent liquidity needs, but also the rehabilitation of critical infrastructure and initial support towards post-war reconstruction, with a view to supporting Ukraine on its way. towards European integration.
The countries of the European Union view the Hungarian government with increasing suspicion, which diplomats and senior officials from different member states accuse of using the European agreements as “hostages” for their interests and deplore the “blackmail diplomacy” by which Budapest has invested in negotiations of all kinds within the European framework.
Brussels is trying to carry out a series of key measures in its support for Ukraine and reprisals for the Russian invasion these weeks, but which collide with the Hungarian blockade because they require the unanimous support of all partners. Thus, in addition to financial macro-aid worth 18,000 million, a new item for the purchase of arms for Ukraine, the ninth package of sanctions against Russia and even the Ecofin agreement for a 15% tax rate are at a standstill. of companies for multinationals.
The pulse
The fight with Hungary affects the pending approval by the Twenty-seven of their reform and investment plan to access 5,800 million euros from the European recovery fund, a decision that was also suspended at the last meeting of the Economy ministers.
Brussels recommended giving the green light to the Hungarian anti-crisis plan but making it clear that any disbursement of the funds should be conditional on Hungary complying with a package of 27 specific measures linked to judicial independence and the fight against corruption in the country, which is also they require him to release the 7,500 million euros of regional funds. If the 27 do not approve this plan before December 31, diplomatic sources warn, Hungary will lose 70% of the 5.8 billion.
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