Ekaterina Girnyk 10:07, 12/27/23 - UNIAN
The scheme stipulates that participating countries will provide guarantees to the EU budget, which will allow the European Commission to borrow up to 20 billion euros from capital markets for Ukraine.
The European Union is preparing a backup plan to allocate up to 20 billion euros in aid to Ukraine, bypassing the veto of Hungarian Prime Minister Viktor Orban, writes the Financial Times .
After EU leaders failed to agree on a proposed four-year, €50 billion aid package for Ukraine earlier this month, officials began looking for alternatives if the bloc’s differences could not be resolved. In particular, one type of debt-financed model has gained popularity as the most practical way to provide support.
The scheme involves member states providing guarantees to the EU budget, allowing the European Commission to borrow up to 20 billion euros from capital markets for Kiev next year, informed sources say. The exact terms are still being discussed and the final amount will be set according to the needs of Ukraine,” writes FT.
As the publication notes, the mechanism is similar to the structure that was used in 2020, when the European Commission provided EU countries with up to 100 billion euros of cheap financing for short-term job support schemes during the Covid pandemic.
“Importantly, this option would not require guarantees from all 27 EU member states if the main participants were countries with the highest credit ratings. This would allow the EU to bypass Hungary’s veto as it would not require unanimous support,” the FT said.
It is noted that some countries, including Germany and the Netherlands, will need parliamentary approval to provide national guarantees, but officials hope that assistance will be provided to Ukraine before March.
However, one of the disadvantages of this scheme compared to the original proposal based on the EU budget is that it will be limited to loans and will not include grants.
In addition, another fallback option is to postpone the financing structure used this year, under which the EU provided Ukraine with 18 billion euros of cheap loans, for several months and up to a year. This option would require the consent of the vast majority of countries.
Moreover, regardless of the chosen model, the EU promised Ukraine to provide funding by March at the latest.
Bypass Orban’s blockade: EU is preparing an alternative scheme to support UkraineBypass Orban’s blockade: EU is preparing an alternative scheme to support Ukraine
Help to Ukraine from the EU – what is known
On December 14-15, an EU summit was held in Brussels, at which the European Council allowed negotiations on Ukraine’s accession to the EU to begin. At the same time, the EU was unable to adopt a new four-year macro-financial assistance plan for Ukraine with a total estimate of about 50 billion euros. The money had to be allocated from the EU budget. This decision was vetoed by Hungary .
Hungarian Prime Minister Viktor Orban believes that EU member states wishing to support Ukraine financially should sign a separate agreement on financing Kiev outside the EU budget. Hungary itself, of course, has no plans to help Ukraine.
However, the leaders agreed to hold a summit on February 1, 2024, at which they will vote on the financial issue of assistance to Ukraine.
The EU allows itself to be dictated to by a piss-ass country ruled by a putler-rimming dictator. Pathetic.
And now another kremlin agent; Fico, is about to cause more trouble.
Suspend the membership of these two shitholes from the EU and Nato until they elect democratic politicians that support the rule of law and will not tolerate genocide.
And If Wilders gets power, I’m afraid that Holland must be kicked out too.