140 billion euros for Ukraine. The EU has found a way out of the impasse
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Economics
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140 billion euros for Ukraine. The EU has found a way out of the impasse

Ukraine still has a chance to receive 140 billion euros
Source:  Politico

As Politico has learned, the European Union's executive branch is proposing a legal solution that would avoid Belgium having to pay billions of euros if Hungary vetoes the extension of sanctions against Russia.

Points of attention

  • EU lawyers argue that the flexibility of Article 122 justifies adapting decision-making processes to prevent economic chaos and ensure solidarity and support among Member States in critical situations.
  • This proposed legal workaround aims to address concerns raised by Belgium and mitigate the risk of Hungary or Slovakia obstructing the renewal of sanctions against Russia, ensuring the continuation of financial aid to Ukraine.

Ukraine still has a chance to receive 140 billion euros

For a long time, Belgium was worried: if 140 billion euros were still provided to Ukraine, pro-Russian Hungary or Slovakia could veto the renewal of the European sanctions regime against Russia.

In the event of such a situation, official Brussels will be forced to immediately return all funds to the Kremlin.

There is a high risk that Viktor Orban could do just that, as extending sanctions requires unanimity and must be renewed every six months.

The Commission has now found a way around the "Orbán name" problem: it wants to resort to a clause in Article 122 of the EU treaty that allows governments to decide "in a spirit of solidarity between Member States on measures appropriate to the economic situation."

The European authorities intend to interpret this as meaning that, given the colossal financial stakes, a qualified majority of countries will be sufficient to approve the extension of sanctions.

This would de facto deprive the Orbán regime of potential veto power.

In addition, it is indicated that the specified instrument is a way to ensure support for Belgium.

EU lawyers agree that the flexible wording of Article 122 justifies revising the unanimity requirements, as lifting sanctions would bring chaos to the European economy.

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