European leaders are convening in Brussels for a crucial summit aimed at resolving a standoff over financial aid for Ukraine. The aid package, amounting to €50 billion, was vetoed by Hungary’s Prime Minister Viktor Orban last December. Orban’s decision was widely believed to be a response to the EU’s withholding of €20 billion in funds for Hungary due to concerns over human rights and corruption. With the second anniversary of Russia’s invasion of Ukraine approaching, leaders are growing increasingly impatient with Hungary’s stance, which is impeding the delivery of necessary funds to Ukraine. In a previous EU summit in December, Orban reluctantly allowed Ukraine to receive the status of an EU candidate country, but his position on Ukraine has always been clear. As Russian President Vladimir Putin’s staunchest ally in the EU, Orban has been cautious in criticizing Russia’s actions and has consistently opposed EU sanctions on Russian oil and gas. Polish Prime Minister Donald Tusk has asserted that the EU will find a solution to support Ukraine, with or without Orban’s cooperation.
The Financial Times reported that Brussels officials might take punitive action against Hungary’s economy if Orban blocks the support package for Ukraine again. Orban’s political director Balazs Orban responded to the report, accusing Brussels of blackmail against Hungary. Following the previous summit, Orban suggested that EU countries could finance Ukraine using money from outside the EU budget. He later expressed willingness to use the budget and lift the veto on the financial package if a yearly vote is held before the release of the next tranche of aid. However, EU leaders are unlikely to accept this proposal, as it would expose them to the annual threat of a veto from Hungary.
The summit is taking place amid ongoing farmers’ protests in several European countries. These protests, which have lasted for weeks, are in response to EU measures aimed at increasing sustainability in the agricultural sector and the lifting of quotas on Ukrainian grain exports. European leaders are likely to demand solutions from the EU in addressing the concerns of farmers, who have significantly impacted major European countries with their protests. In an attempt to address some of the farmers’ grievances, the European Commission has proposed an exemption to the fallow-land requirement and announced plans for a “safeguard mechanism” that would allow for the imposition of emergency tariffs on Ukraine if imports exceed a certain threshold and destabilize the market. However, the EU’s farmers’ association, Copa-Cogeca, has criticized the safeguard mechanism as insufficient for providing relief to producers.
The summit is expected to be heavily focused on finding a resolution to the financial aid standoff for Ukraine. European leaders are keen to prevent any further delays in providing essential funding to Ukraine, particularly in light of the anniversary of Russia’s invasion. Meanwhile, the farmers’ protests have set an additional backdrop to the summit, with demands for solutions to their concerns about EU farming policies and the lifting of quotas on Ukrainian grain exports. The outcome of the summit and the subsequent actions taken by EU leaders will have significant implications for the relationship between Hungary and the EU, as well as for the delivery of financial aid to Ukraine and the resolution of the farmers’ grievances.
