Image credits: AFP

Hungary blocks EU billion-dollar plan to finance Ukraine

European Union (EU) finance ministers failed to reach an agreement on Tuesday on providing more than $6 billion in vital economic assistance to Ukraine next year. Hungary's Prime Minister Viktor Orban's government has, for now, blocked efforts to secure the loan through the issuance of the European bloc's common debt.

A promeAssistance worth 18 billion euros, equivalent to $18,9 billion, is seen as a critical part of the West's contribution to helping Kiev pay for basic services next year. This occurred after the EU came under pressure from United States and of the Ucrania to increase your economic assistance.

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European bloc member states' disputes over who should provide loans and grants to Ukraine this year mean that assistance is unlikely to be that generous.

The European Commission, the EU's executive body, is seeking approval of a proposal to raise the funding itself rather than canvassing member states, an approach that would make the bloc's regular payments much easier. Commission officials have said they want to begin delivering funding to Ukraine in January.

Hungary said it had no objection to the loan to Ukraine, but argued that assistance should be provided by individual EU member states, as was the case this year. Hungarian officials say they oppose EU fundraising through common debt issuance on financial markets, the method Brussels has also used to finance its post-pandemic economic recovery fund.

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(To Estadão Content)

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