EU agrees to provide €50bn in macro aid to Ukraine, rebuffing Hungarian PM Orbán's demands

The European Union did not agree with the demand of the Prime Minister of Hungary, Viktor Orbán, concerning the allocation of the aid package to Ukraine in the amount of 50 billion euros, announced the representative of the President of the European Council, Charles Michel, The Guardian reports.

Orbán agreed on the provision of aid to Ukraine with other EU leaders.

The Hungarian premier succumbed to pressure after meetings with the leaders of Italy, France and Germany.

The leaders agreed to two compromises: in two years, the European Commission will conduct a review of the costs. But there will be a separate vote on this.

"After the agreement was concluded, the president of the European Council quickly consulted with other EU leaders, and they quickly agreed," Michel's representative said.

Orbán insisted on an annual review of financial aid to Ukraine. Other countries opposed giving Hungary additional opportunities to block support. The Hungarian leader wanted the annual decision on the extension of aid to be unanimous.

On Thursday, the European Council unanimously approved a new package of financial assistance for Ukraine for the period 2024-2027 in the amount of 50 billion euros, of which 39 billion euros will go to ensure macro-financial stability.

The new "Instrument for Ukraine" (Ukraine Facility), which provides for the allocation of 50 billion euros in 2024-2027, was being prepared since June 2023, when it was first presented by the European Commission. Money in the form of grants and loans will be provided based on the implementation of the "Ukraine Plan", which will be supported by a number of conditions and a payment schedule agreed with the European Union.

Ukraine received the last tranche from the European Union as part of the previous 18-billion macro-financial aid program on December 21. In 2023, the European Union became the largest donor of direct budget support. The bloc's money provided more than 45% of the state's external financing needs.