NUNZIUM

The unity of the European Union (EU) has recently been put to the test as Hungary, under Prime Minister Viktor Orbán, blocks a proposed €50 billion aid package to Ukraine, referred to as the 'Ukraine Facility'. This comes at a time when Ukraine is dealing with a budget deficit of €39.46 billion in 2024 and daily costs of €124 million related to ongoing conflict. Despite support from 26 EU member countries, Orbán's refusal, citing high levels of corruption in Ukraine and advocating for peace with Russia, has led to an impasse, forcing EU leaders to defer the decision to an extraordinary summit anticipated in January.

The 'Ukraine Facility' is part of a larger €100-billion revision of the EU's long-term budget, the Multiannual Financial Framework (MFF), intended to assist Ukraine through 2027. The package comprises €33 billion in low-interest loans and €17 billion in non-repayable grants. This financial deadlock is particularly critical for Ukraine, heavily reliant on international funding. In November 2022, the EU had approved an €18-billion support package for Ukraine, notwithstanding Orbán's objections. Furthermore, EU’s top diplomat Josep Borrell has proposed enhancing support to Ukraine by an additional €20 billion over the next four years via the European Peace Facility (EPF).

On the other side of the Atlantic, Ukraine's President, Volodymyr Zelenskyy, was unsuccessful in securing more aid from Washington due to Republicans' demand for stricter immigration reforms across the southern US border. Despite this setback, Zelenskyy reported receiving "positive signals" from lawmakers.

In a bid to circumvent Hungary's veto, EU leaders have initiated negotiations on Ukraine and Moldova’s accession to the bloc. However, this symbolic gesture doesn't promise immediate relief for Ukraine, given that the process of joining the EU, involving comprehensive reforms from rule of law to the economy, can span years.

Adding another layer of complexity to the situation is Russian President Vladimir Putin's first campaign speech promising to make Russia a "sovereign, self-sufficient" power against the West. This stance, ahead of an election likely to extend his rule until at least 2030, underscores Russia's intent to distance itself from foreign influence.

Despite the ongoing stalemate over the financial package to Ukraine, the EU leaders have shown their commitment to support Ukraine by opening membership talks with Ukraine and Moldova. This move, in defiance of Hungary's opposition, signals unity and support. As the EU leaders reconvene in January, the world will watch to see if they can resolve the deadlock and provide the much-needed assistance to Ukraine.

The resolution of this stalemate will not only impact Ukraine, but will also have significant implications for the EU's credibility and unity. Amid the political negotiations, the people of Ukraine continue to suffer the consequences of the conflict, awaiting the EU's decision in January with bated breath.