(Bloomberg) — All but one of the European Union’s 27 leaders were nearing agreement Thursday on a revision of the bloc’s long-term budget that would include a €50 billion ($55 billion) package for Ukraine, with Hungary the main holdout.
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EU officials and diplomats from 26 nations want to clinch a deal on the review of the so-called multi-annual financial framework and then present it as a united front against Hungarian Prime Minister Viktor Orban, who remains the main obstacle to approving a new EU aid package for Kyiv that would start next year, according to people familiar with the matter.
The EU summit is coming at a critical moment for Kyiv as backing from both the EU and the US is faltering. Ukraine’s counteroffensive, backed by billions in western weapons and training, has made limited progress. That raises questions about Ukrainian President Volodymyr Zelenskiy’s ability to deliver on pledges to fight to victory.
Leaders were considering around €22 billion in additional money to reinforce the EU budget until 2027, including €17 billion that would be offered to Kyiv as non refundable grants, the people said. An additional €33 billion would be given to Kyiv as loans. Any such decision on the EU budget requires unanimous approval of the bloc’s 27 members.
European Council President Charles Michel told leaders the latest proposal was balanced and encouraged them to approve it, according to one person familiar with the matter.
Discussions with Orban, however, still look very difficult. He has opposed a new package for Ukraine over concerns about how previous EU aid was spent, and has questioned the bloc’s overall strategy.
Hungary signaled earlier this week that it would consider lifting its veto in return for being able to access more than €30 billion in EU funds allocated to Budapest that has been blocked over concerns related to the rule of law and fundamental rights. On Wednesday, the EU unfroze more than €10 billion of aid for Hungary that had been held up until the government made changes aimed at strengthening the country’s judiciary.
The bloc is considering options to support Ukraine circumventing Orban’s veto but such a discussion isn’t expected to be held on Thursday, the people added. The EU leaders’ summit is scheduled to continue into Friday, and some diplomats said it could be extended into the weekend if necessary.
Read more: Ukraine Faces Crucial Test at EU After US Leaves It Empty-Handed
–With assistance from Michael Nienaber, Ania Nussbaum, Natalia Ojewska, Katharina Rosskopf and Stephanie Bodoni.
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