The Hungarian government does not support the EU taking out a €165 billion loan, 100 percent of which would support Ukraine.
The European Commission wants the 27 EU member states to agree on a loan to support Ukraine’s struggling economy at a summit later this month, but borrowing from the EU budget requires unanimous approval.
The Ukrainian portal UNIAN blasted Hungary for once again creating obstacles to prevent the European Union from supporting Ukraine, reports Mandiner, after the Hungarian government officially rejected the EU’s joint bond issue to finance Ukraine last Friday.
This move makes it difficult for the EU to finance the €165 billion loan it seeks for Ukraine, removing its Plan B if Brussels does not find a way to use frozen Russian assets.
Both Hungary and Belgium, where the vast majority of Russian assets are held, are strictly opposed to using them, leading German Chancellor Friedrich Merz on a campaign to convince the Belgian government to change its position.
The proposed loan would provide €115 billion to finance Ukraine’s defense industry over five years and a further €50 billion to cover Kyiv’s budget needs.
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