Orban Folds: EU Approved €50 Billion Deal For Ukraine

Today, EU leaders reached a rapid consensus on a €50 billion support package for Ukraine, breaking a deadlock that threatened crucial financial assistance for Kyiv. The breakthrough came after Hungarian Prime Minister Viktor Orbán, who had been obstructing the release of funds, conceded during intense negotiations at the extraordinary summit.

At the forefront of the discussions was the creation of the Ukraine Facility, a special fund encompassing €33 billion in loans and €17 billion in grants. The fund, set to be disbursed between 2024 and 2027, is contingent upon Ukraine implementing structural reforms related to public administration, good governance, the rule of law, and the fight against corruption and fraud.

The EU's €64.6-billion common budget underwent a review, incorporating new allocations for migration and border control (€9.6 billion), cutting-edge technologies (€1.5 billion), emergency assistance (€1.5 billion), and a flexibility instrument for unforeseen crises (€2 billion).

"All 27 leaders agreed on an additional €50 billion support package for Ukraine within the EU budget," announced Charles Michel, the president of the European Council, emphasizing the EU's commitment to providing steadfast, long-term funding for Ukraine.

Notably, Orbán's earlier resistance, which had halted the proposed fund, had created a financial crisis for Kyiv. With Ukraine urgently requiring €34.45 billion to sustain essential services and run its economy in 2024, the deadlock had reached a critical point.

The compromise reached on Thursday involved concessions on Orbán's demands, such as an annual review of the fund. The EU leaders agreed to hold a yearly debate on the Facility's implementation without subjecting it to a vote, thereby circumventing potential vetoes. The compromise text did not include concessions on frozen funds or interest rates.

The breakthrough occurred just before the summit began, during a private meeting with Orbán, Charles Michel, European Commission President Ursula von der Leyen, French President Emmanuel Macron, German Chancellor Olaf Scholz, and Italian Prime Minister Giorgia Meloni.

The political decision on the Ukraine Facility paves the way for formal negotiations between the Council and the European Parliament. These negotiations are expected to be expedited due to the urgent need to provide financial aid to Kyiv. The first round of talks is scheduled to take place on Monday in Strasbourg.

Leaders, including Belgium's Alexander De Croo, the Netherlands' Mark Rutte, Czechia's Petr Fiala, Estonia's Kaja Kallas, Latvia's Evika Siliņa, and Poland's Donald Tusk, took to social media to celebrate the breakthrough, echoing the sentiment that it was a positive day for Europe.

From Kyiv, President Volodymyr Zelenskyy expressed gratitude for the EU's unity and continued financial support, emphasizing the importance of economic stability alongside military assistance and sanctions against Russia.

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