EU agrees on $54 billion fund for Ukraine

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Some European leaders joked that they would send Prime Minister Viktor Orban of Hungary hotel bills for the extra nights they would have to spend in Brussels to convince him to support Ukraine’s funding.

Others, less jokingly, told him he risked a legal suspension of EU proceedings. And some offered a friendly, understanding ear over late-night drinks as he complained about what he sees as a European bureaucracy stacked against him out of ideological animosity.

By Thursday morning, just an hour into an emergency European Union summit meeting, this carefully coordinated behind-the-scenes pressure had forced Orban to concede. After weeks of standing in the way as the lone holdout among 27 leaders, he finally agreed to a historic fund for Ukraine worth 50 billion euros, or $54 billion.

The progress was especially significant for both Ukraine and the European Union. It will help keep Ukraine’s economy afloat for the next four years, even as U.S. aid is stalled in Congress. And it demonstrated Europe’s determination to remain united in support of Ukraine against Russia, and its determination to subdue an often obstructionist Mr. Orban.

To get there, Europe’s top leaders took on different roles to bring Orban into line.

European Council President Charles Michel played the role of the bad cop. On Monday he called Orban to let him know that there was no way his demand for an annual veto over the Ukraine fund would be granted.

And he put the EU’s “nuclear option” on the table, telling Orban that some member states were considering launching a procedure that would strip him of his vote entirely, in what would be an unprecedented use of the EU rulebook. .

Then on Wednesday night, Orban met with Prime Minister Giorgia Meloni of Italy, his far-right ideological friend, in the executive suite of the stately five-star Hotel Amigo, a staple for visiting dignitaries, tucked away in the heart of Brussels.

Sitting on green velvet armchairs against leafy wallpaper, in front of a bottle of champagne, Meloni told him he had more to gain from the EU if he played along. She suggested that a review of Ukraine’s fund in 2025 would go some way to meeting her need for close scrutiny of spending. Now was not the time to delve deeper.

Then it was the turn of French President Emmanuel Macron, who had hosted Orban for a lunch in January in Paris. He met Orban at Amigo later on Wednesday evening and suggested that EU leaders could include some language in their joint conclusions that would nod to Orban’s complaint that the EU’s executive branch is withholding funds from Hungary due to ideological prejudices.

Meanwhile, Orban knew that just a few miles down the street, in Brussels’ European quarter, other leaders were gathering to talk about him… without him. A meeting between Mr. Michel; Dutch Prime Minister Mark Rutte; and the German chancellor, Olaf Scholz, confirmed that there was nothing to gain if he resisted the Ukraine fund.

They remained committed that no further concessions would be made, such as unfreezing EU money for Budapest, which Orban had squeezed from his partners earlier.

That word was conveyed to Mr. Orban.

The extraordinary efforts to get Orban to capitulate reflected both the Hungarian leader’s unique power to play the role of spoiler and the determination of his EU partners to secure a unanimous agreement to help Ukraine.

Ukraine desperately needs to keep basic services running. European aid, which will be delivered in the form of loans and grants over the next four years, would cover immediate needs and allow Ukraine to plan its long-term budget.

Before Thursday, talks had been stalled and sentiment toward Orban, Russian President Vladimir V. Putin’s closest EU ally, had soured since he blocked Ukraine’s first funding attempt in December.

Orban’s obstruction had been irritating his European partners. However small his country may be, Orban has become a major antagonist of EU rules and norms.

The European Union and Hungary have long clashed over policies on the rule of law, corruption and minority rights. The European Commission, the bloc’s executive branch, has criticized Hungary for judicial appointments that it says interfere with the independence of the courts; laws that discriminate against LGBTQ people; and the weakening of anti-corruption authorities.

It blocked Hungary’s access to about 20 billion euros until it can demonstrate that it has changed those policies to align them with EU rules and values.

Orban has also been a huge obstacle to many of Europe’s ambitions, including some sanctions against Russia and even Sweden’s attempt to join the NATO alliance.

He has stated that his resistance boils down to a fundamental disagreement with other European leaders: he does not believe that Russia represents a threat to Europe’s security, nor does he believe that the European Union should support Ukraine.

Orban regularly uses his levers within the bloc (often his ability to veto decisions that require unanimity, such as the introduction of the Ukraine fund) to pressure Brussels to make concessions, including unfreezing money it has withheld from Hungary.

In the current standoff, Orban had demanded an annual opportunity to veto the disbursement of money to Ukraine, but that was rejected. Instead, leaders agreed to a periodic review of spending to mitigate concerns about diversion or corruption.

Under the agreement, the European Commission will write a report on how the Ukraine fund is being used. European leaders will have the opportunity to discuss their performance and raise any concerns.

The European Parliament needs to approve the fund by a simple majority, a hurdle that should be easily overcome, and the vote could take place as early as this month.

If Orban’s demand for an annual veto of the Ukraine fund was a play to gain access to more funding, it backfired.

He only managed to extract a reference in the summit conclusions urging the European Commission to be “proportionate” in the way it freezes the financing of member states that it punishes for violations, as is the case of Hungary.

Asked whether Orban got any concessions in exchange for withdrawing his veto demand, Ursula von der Leyen, president of the European Commission, told reporters: “The answer to your question is a simple no.”

Still, Orban insisted he had won the argument as he prepared to return home.

“Mission accomplished,” he said on social media. “Funds from Hungary will not end up in Ukraine and we have a control mechanism at the end of the first and second year. “Our position on the war in Ukraine remains the same: we need a ceasefire and peace talks.”

The EU also triumphed.

“The European Council reconfirmed Europe’s unwavering commitment to supporting Ukraine,” von der Leyen told reporters. “We know that Ukraine is fighting for us, so we will support them with the necessary financing and provide them with much-needed predictability.”

The news was well received in Ukraine.

“It is very important that the decision was made by all 27 leaders, which once again demonstrates the strong unity of the EU,” said President Volodymyr Zelensky of Ukraine. wrote on social media. “The EU’s continued financial support for Ukraine will strengthen long-term economic and financial stability, which is no less important than military assistance and sanctions pressure against Russia.”

Andrew Kramer contributed to this report from kyiv, Ukraine.

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