Hungarian Prime Minister Orbán weighs possible economic retaliation from EU
Zelensky: “Unanimity is important… Proving strong EU integration”
Kuleba, Ukrainian Foreign Minister, “Fatigue and weakening support are just lies.”
At the summit held in Brussels on the 1st (local time), the European Union (EU) unanimously decided to provide 50 billion euros (about 72.2435 trillion won) in long-term support to Ukraine for four years starting this year.
Long-term support, which will last until 2027, is a matter of the EU budget and requires the approval of all 27 countries. The long-term support budget for Ukraine, which has been fighting for 24 months after being invaded by Russia in February 2022, was decided last summer.
However, it could not be confirmed due to the sole opposition of Hungarian Prime Minister Viktor Orban, who is close to Russia. At the summit at the end of last year, Prime Minister Orbán did not participate (abstain) in the vote on granting Ukraine the status of a candidate country for EU membership, allowing it to pass. He was the only one who opposed the 50 billion euro budget support until the end, so the support plan was not finalized.
Prime Minister Orban harbored great resentment after the European Commission froze EU economic recovery funds allocated to his country, taking issue with the country’s anti-democratic behavior of ignoring the rule of law, and has been ‘mongering’ about support for Ukraine.
It is known that the EU leaders agreed with the European Commission ahead of the summit on this day to implement a number of measures that will deal a major blow to the Hungarian economy, which has many weaknesses, if Orbán continues to oppose it. This is interpreted to have led to a change in Prime Minister Orbán’s attitude. Instead, Hungary is more likely to receive frozen EU allocated economic recovery funds.
The EU budget is formed from the contributions paid by member states, is set for a period of seven years, and its contents are confirmed twice. This long-term support for Ukraine belongs to ‘national financial’ support that has nothing to do with military or relief.
Ukrainian President Volodymyr Zelensky and Ukrainian Foreign Minister Dmytro Kuleba expressed their gratitude for the agreement.
President Zelenskyy said on social networking service (SNS), “It is very important that this decision was made by the leaders of all 27 (EU) countries. “This once again demonstrates strong EU integration,” he said. “The EU’s continued financial support to Ukraine will strengthen its long-term economic and financial stability. “This is as important as military support and sanctions pressure imposed on Russia,” he said.
“This shows that any stories about ‘fatigue’ or ‘weakening support’ are just lies,” Minister Kuleba said on social media. “Europe has once again demonstrated its strength and ability to make important decisions independently of other countries.” . “The EU is leading the way and setting an example for the whole world to follow,” he said to applause.
Ukraine is facing a fiscal deficit of $5 billion (approximately 6.675 trillion won) every month due to a lack of tax revenue due to the war. As a result, the performance of basic government affairs such as education, health, pensions, and civil servant compensation is greatly disrupted.
The United States and the EU limited their support to this financial area, and the EU provided 1.5 billion euros (about 2.1673 trillion won) every month last year, totaling 18 billion euros (about 26.077 trillion won).
As a follow-up measure, the 50 billion euros decided this time will pay an average of 12.5 billion euros (approximately 18.609 trillion won) per year from this year to 2027. This is a reduced amount compared to last year.
Ukraine launched a counteroffensive in June of last year, one year and four months into the war, but was unable to find a breakthrough due to Russia’s tight defense. Meanwhile, the U.S. Republican Party, which controls the House of Representatives, continued to boycott the $61 billion (approximately KRW 81.435 trillion) special budget for Ukraine’s second round of aid proposed by U.S. President Joe Biden due to the influx of immigrants on the southern border with Mexico, which failed to materialize.
In addition, Ukraine was in great trouble as the EU’s long-term support of 50 billion euros was blocked due to opposition from Hungary. As the attention of the international community, including the United States and Europe, was focused on the Gaza Strip following the surprise attack on Israel by the Palestinian armed faction Hamas on October 7 last year, morale in Ukraine worsened.
The United States provided $110 billion (approximately 146.85 trillion won) in military, relief, and financial support following the outbreak of war in Ukraine.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.