European Union (EU) leaders will meet today to determine ways and means to secure a multibillion euro funding for Ukraine, which has been blocked by Hungarian PM Viktor Orban.
What Is At Stake?
Ukraine is in the midst of a tough period with aid from the US and EU held up. The $54 billion fund will be to support Ukraine till the end of 2027.
Kyiv needs urgent funds to cash in on basic services and the EU aid, likely in the form of loans and grants over the next four years, would cover both immediate and future needs.
Why Is Hungary Blocking Deal?
Orban has played spoilt sport for most EU decisions linked to Ukraine including sanctions against Russia. Orban, a close ally of Russian President VladimirPutin, has repeatedly emphasised that Moscow is not a threat to Europe.
Critics believe Orban is playing hardball as he wants to unfreeze aid worth billions that have been held up as Budapest breached EU rules.
Orban and the EU have clashed on policies related to law, corruption and minority rights. The EU believes that Orban’s policies at home have eroded democratic protections.
The Best Case Scenario
A compromise cannot be ruled out as both sides may still find room for the deal to come through.
There is a likelihood that Hungary may be given financial incentives to help countries to get the bill passed.
What If Hungary Doesn’t Agree?
In case the talks do not yield a result, the EU leaders would be forced to go back to the drawing table.
There is an option, in which EU leaders can launch a special fund for Ukraine approved by 26 member states, leaving Hungary out.
This may make it tougher for the EU as it would need approval of each government, and in some cases parliamentary votes.
