Breaking news: Hungary blocks EU aid to Ukraine amid Russia war
On Tuesday, the Orbán cabinet blocked an agreement on a EUR 18 billion aid package for Ukraine at a meeting of finance ministers in Brussels.
It required a vote on three pieces of legislation, but Finance Minister Mihály Varga indicated he would not agree to the amendment to the joint financial regulation, which required unanimity, so the package as a whole could not be adopted.
The EU candidate country, under attack from Russia, is estimated to need EUR 3-4 billion a month in aid. The EU would contribute roughly half of this, which would be accessible from the beginning of next year, rather than the ad hoc aid that has been provided on a piecemeal basis.
The Hungarian government has already indicated in advance that it did not support joint borrowing. Government members have stressed that they were not discussing aid, but rather – on principle – the EU borrowing together. Instead, they would give Ukraine its share of the EU’s GDP bilaterally, and sought to show by a government decision that they meant it.
However, this solution would require EU countries to provide national bug guarantees, which in some cases require parliamentary approval, which could take some time.
The EU could borrow together more economically, which – because of its relatively small GNP – would cost the Hungarian government less than, say, Italy.
Tuesday’s Hungarian veto meant that decisions on all other issues on the finance ministers’ agenda – the minimum corporate tax rate, which Budapest is also blocking, the Hungarian recovery plan and its €5.8 billion subsidies, and the decision to freeze €7.5 billion in EU funds for Hungary because of corruption problems, were postponed.
As we wrote before, EC last week said it had decided to give its support for the adoption of Hungary’s plan for accessing EU recovery funding worth 5.8 billion euros, though the EC would continue to freeze 7.5 billion euros in cohesion funding, details HERE.
Czech presidency: solution supported by 26 EU members
Czech Finance Minister Zbyněk Stanjura, chairing the finance ministers’ meeting, tasked the Council to work on “a solution supported by 26 EU members” that would bypass Hungary’s veto.
Possible scenarios: a new finance ministers’ summit in December, or the issue being put to EU leaders in mid-December.
UPDATE
- Explanation after Hungary’s veto: aid to Ukraine is not fair – UPDATE
Victor Orban – Prime Minister of Hungary – has NEVER shown his TRUE opinions as to what side of the war inflicted commenced by Russia on the Ukraine he supports.
This constant line out of Hungary – we want PEACE – propaganda avoidance of Fact & Truth – that is just a “camouflage” a veiling of who and why – Victor Orban and the Hungarian Government – won’t declare who they SUPPORT.
We all of sound mind want PEACE.
Hungary, under what the European Union refer them as a Government – who has been systematically “divorced” from Democracy – torn away from it, by the Political ideas and philosophy of Victor Orban, that the European Union now have RIGHTFUL reasons – to refer to Hungary as a Government ruled as a Dictatorship.
This decision by Victor Orban & his Government, separates Hungary wider apart and in DEEPER isolation as a country, who’s FRIENDSHIPS are Russia & China – ruled under Dictatorships.
Friendships – within the Family of European Countries expanding it to a Global position, inclusive of Great Britain & Ireland and the United States of America – under the present Prime Minister of Hungary – Victor Orban he has DESTROYED long standing friendships with countries that have been factual over the “fullness” of time.
Hungary separated – isolated – friendships centered on and around Russia and China – Dictatorships.
Russia & China – for NUMEROUS reasons – they are Economically & Financially “strained” – that gives all indications the WORST of their self-inflicted cataclysmic broadsheet ranging problems, still have distance in time to reap and inflict horrendous DAMAGE to these (2) two friendship countries – of Hungary.
Hungary’s economy – from the mouth of the Governor of the Hungarian Central Bank opinion – then throughout sectors of the Hungarian componentry of operation that is the Engine Room of Hungary – its Economic & Financial functionality – the economy of Hungary – nears a COLLAPSE.
BLAME is rightfully cutting deeper – that BLAME for the horrendous BLACK Hole we are in – is through INCORRECT Monetary Policies set by – embarked upon by this present Government of Hungary – under the present Prime Minister of Hungary – Victor Orban.
Brussels, the European Union know the “games” of Hungary played by Victor Orban.
Brussels have caught him Hungary out with their “hands in the pockets” – centered muchly on EU funding mis use and the TOTAL abuse – Disrespect of the Rule of Law – of the European Union.
This decision – the subject of this DNH article – another NAIL in the casket, that sees the name Hungary – its membership within the European Union in the immediate FUTURE under severe pressure to SURVIVE.
Quick poll: imagine, you are part of a club. The same person keeps on blocking decisions every other club member is in favor of.
What would you do?
At some point, the European Union will just assume Hungary is likely to veto and pre-emptively work around our Politicians.
https://www.euractiv.com/section/economy-jobs/news/eu-finance-ministers-to-discuss-eu-funds-for-hungary/
Hungary – Victor Orban – the on-going mental blockage that continues to CRIPPLE us as a country, through Victor Orban FORGETTING – who has the MONEY in their Purse.
WHO holds the MONEY that Victor Orban – NEEDS to avoid, the nearing of the COLLAPSE of the Hungarian economy?
Brussels has the PURSE – with all the Money.
The on-going bridges that he Victor Orban burns – deepening the ALIIGNATION between Hungary and the other 26 member countries of the Family of European Countries – the PURSE rightfully possible totally agreed by the other 26 countries will see Hungary receiving NOTHING.
WHAT will the 26 countries say & DO as RETALIATION against Hungary?
There WILL be rightfully Retaliations.
WHO does Victor Orban/Hungary support in this Russian War on the Ukraine?
February 2022 to December 2022 – we STILL wait Victor Orban/Hungary’s answer.
No wonder Putin got Orban back in as PM. He was re-elected purely to do Putin’s bidding. Coming up with half baked excuses all the time. The government seems to think we’re a bunch of halfwits.
Norbert,
I would ask the others to stop provoking the guy all the time, and would personally stop abusing him. Because you don’t do that kind of thing without a reason. And the EU certainly gave more then necessary.
Sadly, the West only makes dictates, abuses the weak, and is unable to negotiate. Its time to give them the “Habsburg treatment”.
The only thing I regret is that Orbán is so soft on the Eu. I rather fight then accept becoming a slave. And I expect the same form my government.
If Brussels can’t stop centralizing authority, and getting more oppressive and abusive, it’s time to burn the whole thing to the ground.
No, no, no!
Dear people, all the media, all the press, every one has got it all wrong (as usual)! Can’t you see on Viktor Orban’s tweet that Hungary (Mihaly Varga) did not veto EU’s aid to Ukraine. It’s all fake news! 😉 😀 Even up here, the headline is wrong, it’s fake news! 😉 – Just read what Viktor Orban tweeted on Elon Musk’s Twitter that ends with “No veto, no blackmailing”. And of course, the world is flat too! 😀
Twenty six Finance Ministers voted “yes”, Hungary’s voted “NO”, but Viktor Orban tells us that that is not the case, it’s “fake news”.
So, if Hungary did not veto it, then it must have agreed to the EU aid!
Seriously, I hope to God that the EU will very soon find a workaround to the muck this toxic member creates – just to spite it.
Incidentally, I wonder how the locals in Ukraine will retaliate against our fellow ethnic Hungarians in Ukraine when they find out that Hungary “dit not veto” the EU aid package to Ukraine.
– They (the Ukrainians) will love us almost as much as they love Putin.
I’d sign up to borrowing backed up by the entire EU any day of the week – as opposed to us going to the market.
Let’s look at some data, shall we? https://tradingeconomics.com/hungary/government-bond-yield
Only Russia and Turkey have higher 10 year bond yields than Hungary! And we’d need to service that debt for 10 years, right?
Hungary has every right to veto any proposed legislation that does not add to the welfare of the people of EU or Hungarian people. The more money is given to Ukraine, the longer the war will last, more cities will be destroyed, more people killed, and more people are forced to leave.
History shows that not Napoleon and the French army or the German army managed to defeat Russia. Even with foreign support, including the US and EU, the war in Ukraine is a tie. Russia has changed tactics, instead of putting boots on the ground, Russia is destroying the infrastructure. This tactic equally affects large numbers of cities with smaller effort on behalf of the enemy.
Ukranian people should not fight Biden’s proxy war. It is time for diplomacy to end this madness.