Hungary has decided not to block the creation of an EU military fund worth €5.4 billion for Ukraine. This paves the way for an agreement to modernise a stable arms supply mechanism.
What does Hungary's decision to create an EU fund mean for Ukraine
As the publication notes, Hungary said it would not prevent reaching a consensus at the meeting of the ambassadors of the European Union on Wednesday.
Bloomberg points out that Hungary's decision marks a change in position for Budapest, which this week said it opposes reforming the current EU mechanism that reimburses European countries for weapons they have sent to Ukraine.
Moreover, it coincides with growing pressure on Hungarian Prime Minister Viktor Orbán to approve Sweden's accession to NATO.
It notes that Hungary also blocks the provision of 50 billion euros in financial aid to Ukraine and blocks the payment of the last tranche of 500 million euros from the EPF. The Minister of Foreign Affairs of Hungary, Péter Szijarto, said that his country may consider supporting the allocation of funds after a meeting with his Ukrainian counterpart. It is scheduled for Monday.
The modernization of the aid fund to Ukraine involves the creation of a separate mechanism under which the EU will move away from using existing stockpiles of weapons to purchasing new ones through joint procurement contracts.
What preceded it
At the summit of the EU leaders on December 14-15, Hungary blocked the decision to allocate 50 billion euros to Ukraine for 2024-2027.
The issue of aid to Ukraine will be discussed at the EU summit on February 1. But Hungarian Prime Minister Orbán threatens to block it. He is demanding concessions from the EU in exchange for approving the package.
After that, the European Parliament initiated the collection of signatures under a petition to deprive Hungary of the right to vote in the Council of the EU. In four days, the required number of signatures was collected.
At the same time, the EU hinted that they received a positive signal from Hungary regarding the aid package for Ukraine.
