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Billions and Ukraine: EU summit delayed

Billions and Ukraine: EU summit delayed

Billions and Ukraine: EU summit delayed
Billions and Ukraine: EU summit delayed

EU Summit Up in the Air: Will Ukraine and Budget Decisions be on the Table?

Is it going to be a celebration or a bust-up at the end of the EU summit this year? It's anyone's guess as we approach the last regular meeting of 2022 in Brussels.

The two-day event will center around the European Commission's proposal for EU accession talks with Ukraine and Moldova. However, there's also a chance for a discussion on giving the EU budget a boost.

The EU Commission suggests that a new funding tool targeting Ukraine could unlock up to 50 billion euros for the country, which has been hit hard by Russia. But, is there enough consensus to make far-reaching decisions at this summit?

Veto Power Threatened

Hungarian Prime Minister, Viktor Orban, has thrown a spanner in the works, declaring that he won't support decisions on the budget or Ukraine EU accession negotiations at present. With a veto, Orban has the power to block decisions that need unanimous approval.

A meeting between a spokesperson for EU Council President, Charles Michel, and top shots from Germany, France, and the European Commission is scheduled before the summit to iron out differences. But, will it be enough to avoid an impasse?

Hungary's Pressure Tactics on Funding

Diplomats ponder whether Orban is merely applying pressure to secure the release of more EU funds for Hungary. On the other hand, Orban has been firm in his stance, vowing that he won't back down even after the release of funds.

In a missive to EU Council President, Charles Michel, Orban urged that no resolutions be planned for the summit to prevent an unsuccessful outcome due to a lack of consensus.

Release of Funds for Hungary

As a kind of olive branch, the EU Commission announced the release of 10 billion euros in frozen EU funds for Hungary, as reform requirements had been fulfilled with judicial reforms. However, other budget funds amounting to almost 12 billion euros and billions in coronavirus aid remain blocked.

German Chancellor, Olaf Scholz, to Attend Summit

Scholz will grace the summit with his presence. He supports the idea of initiating EU accession talks with Ukraine but is opposed to the EU Commission's proposal for additional payments into the EU budget, preferring to fund Ukraine support through reallocations.

Ukraine Warns EU Against Saying No

The Ukrainian government has issued a stern warning, foreseeing "devastating consequences" if the EU summit fails due to a Hungarian veto. This, they argue, would be demotivating for Ukrainians and give the outside world an impression that the EU is unable to take critical decisions.

Ukraine has fulfilled a significant portion of its outstanding obligations, such as anti-corruption laws and minority language rules. However, Hungary claims that Ukraine has not yet met all the requirements, making it incompatible with a summit decision from June 2022, which states that further steps should only be taken once all requirements are fully met.

Insights

Privately, EU members have shown an understanding for Hungary's concerns. Some have even proposed setting up a joint task force to monitor the spending of EU funds in Ukraine[5]. Furthermore, the EU is exploring the idea of making updates to the Lisbon Treaty to enable stronger enforcement actions against member states failing to adhere to EU rules[6][7].

In conclusion, the EU summit may face challenges due to opposition from Hungarian Prime Minister Viktor Orban. However, diplomats, political analysts, and even Orban himself might be using the situation as a bargaining chip to secure additional funding for Hungary and push for increased EU unity. Despite this, the EU is committed to supporting Ukraine and boosting its financial position in the face of Russian aggression.

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