EU must convince Hungary over Ukraine aid at summit, German official says

The European Union aims to convince holdout Hungary to back its proposed 50 billion euro ($54 billion) aid facility for Kyiv at its summit this week to send a clear signal to Russia, a German government official said.

All but one of the bloc’s 27 member states support the Ukraine facility, the official said, referring to Hungary, whose Prime Minister Viktor Orban has touted his ties with Moscow and threatened to veto the aid.

Ukraine needs planning stability as it enters its second wintertime fighting off a Russian invasion, the official told a briefing in Berlin ahead of the Dec. 14-15 summit.

Such pay-outs from the shared EU budget need unanimous support of all member states.

“Our clear aim is to convince this state that the Ukraine facility is the right instrument to show our unity and send Russia a clear signal, but also to support U.S. President (Joe) Biden’s efforts to mobilise the further necessary support,” the official said.

Asked if there was a plan B, the official said: “We are betting on plan A.”

Hungary is not at odds with its EU partners for the first time. It watered down sanctions against Russia and last December vetoed a deal to grant Ukraine 18 billion euros ($19.4 billion) in 2023.

Budapest eventually allowed that assistance through after haggling for days over EU aid to Hungary, which had been blocked over concerns of democratic backsliding under Orban.

The German government official said the budget crisis in Berlin in the wake of a constitutional court decision that threw Germany’s finances into disarray would not affect the German government’s commitment to aid for Ukraine.

“The Ukraine facility is the highest priority in our point of view and must be financed come what may,” the official said noting that budget talks were not expected to prevent Chancellor Olaf Scholz from attending the summit.

The Israel-Hamas war and migration will also feature high on the agenda of the EU summit, the official said.

Asked if the EU summit could discuss possible sanctions on a number of Israeli settlers over attacks on Palestinians in the occupied West Bank – following in the footsteps of the United States – the official said the topic could certainly come up given the prominence of the conflict in the Middle East.

“These are ideas being considered in EU circles that we believe are legitimate,” the official said.

The summit would not however address new EU fiscal rules given finance ministers were engaged in constructive discussions over these, the official said.

(Reuters)