EU Explores These Three Options to Bypass Hungary's Veto on $54.3 Billion Aid for Ukraine

Written by Henrik Rothen

Jan.19 - 2024 10:50 AM CET

EU Explores These Three Options to Bypass Hungary's Veto on $54.3 Billion Aid for Ukraine.

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The European Union is exploring three alternative methods to provide $54.3 billion in aid to Ukraine, should Hungary veto the proposal.

Ukraine's ambassador to the EU, Vsevolod Chentsov, outlined these options on January 18.

Option A: Creation of a four-year fund for Ukraine within the EU budget.

Option B: An extra-budgetary fund where EU member states can contribute.

Option C: The European Commission borrowing funds under its guarantee, allowing macrofinancial support through periodic borrowings from the Commission.

Hungary is aware of these alternatives, and the EU prefers Option A for its convenience and lower cost. Chentsov believes Option A will likely be adopted, possibly with some safeguards or financial metrics review.

Despite the uncertainty of the aid's approval, bilateral assistance remains a possibility.

The EU is confident in approving the €50 ($54.3 USD) billion aid for Ukraine within a few weeks, as reported by NV on January 17.

Hungary, led by Prime Minister Orban, had previously blocked the adoption of an EU budget decision, which included a medium-term aid program for Ukraine, at the EU summit in December.

However, the EU is preparing an alternative plan to provide Ukraine with €20 billion ($21.74 billion) in financial support, bypassing Orban's veto, if needed. This mechanism could be employed if Orban's veto persists at the planned summit on February 1.