EU Council decides on 18 billion package for Ukraine despite Hungary’s veto
Despite the Hungarian veto, the Council of the European Union has reached an agreement on a legislative package that will allow the European Union to provide Ukraine with financial assistance in the amount of EUR18bln in 2023. The agreement was announced by the press service of the EU Council on Saturday, writes European Pravda. The proposal was adopted by the Council on 10 December through a written procedure and will be submitted to the European Parliament for possible adoption next week.
The package provides for a structural decision on financial support for Ukraine in 2023. The sum of money that will be provided to Ukraine in 2023 will be 18 billion euros, and the loans will have a 10-year grace period.
EU member states will cover most of the interest expenses from external targeted revenues. Guarantees for these borrowings will be provided either from the EU budget or by member states, the press service said.
The program aims to provide short-term financial assistance, fund Ukraine's urgent needs, restore critical infrastructure, and initial support for sustainable post-war reconstruction to support Ukraine on its path to European integration. Earlier, Hungary opposed the decision of the EU to provide Ukraine with an EUR18bln aid package.
We have launched English Twitter! Follow us!
According to the initial proposal of the European Commission, the aid package required a unanimous decision of 27 EU countries.
However, due to the Hungarian veto, the current Czech presidency of the EU Council was looking for a way to make a decision on assistance without Hungary, the German DPA agency explained. Now the solution is that loan guarantees - if Hungary maintains its veto - will not be covered by the EU budget, as originally planned, but will be taken over by individual EU countries. This means that a unanimous decision by all EU countries would not be necessary.
However, Hungary still has time to join this process. If Budapest changes its position, the guarantees will be covered from the EU budget, the agency writes. Hungarian Prime Minister Viktor Orban said that Budapest, although it has blocked EU macro-financial assistance for Ukraine, does not really oppose financial support for Ukraine; it just supports granting it in a different way.
Journalists fight on their own frontline. Support Ukrainska Pravda or become our patron!