Hungary Blocked €18 Bln Macrotranche for Ukraine

by Olha Povaliaieva
Tuesday, December 7, 2022
Hungary Blocked €18 Bln Macrotranche for Ukraine

"We cannot allow just 1 member state to delay and derail such financial assistance from the EU" Dombrovskis

In November, the European Parliament announced its readiness to provide Ukraine with a macrotranche for 2023 at the rate of €1.5 billion per month. On December 6 in Brussels, at a meeting of the MF of the EU countries, Hungary blocked the legal package necessary to provide Ukraine with this macrotranche. As a result, only one document out of 3 was adopted — an annexe to the regulatory package, the function of which is to create a diversified financing structure.

"The most pressing issue today was EU funding for Ukraine in 2023. 1 Member expressed objection. We have not reached an agreement today. Work will continue over the next few days in order to reach such an agreement as quickly as possible," European Commission executive proceedings Valdis Dombrovskis commented on the failed attempt to help Ukraine so far and said that if not this way, then others, the European Union will still help Ukraine. 2 ways of urgent coverage of Ukrainian requests have already been prepared:

  • A loan for the payment of macro-financial assistance guaranteed by the EU budget reserves;
  • National support for borrowing by partner countries.

"In any case, the member countries are determined to work to ensure that these funds reach Ukraine as early as January. In any scenario. This is a very important question. Ukraine is a country at war. It badly needs our help and we cannot allow just 1 member state to delay and derail such financial assistance from the EU. Therefore, we must deliver it, one way or another. And we will deliver it," Valdis Dombrovskis.

The vice president noted that the adoption of any of these decisions will help Ukraine exactly on time  — at the beginning of January 2023.

"The EU must show unity and solidarity and stick to its own promises made to Ukraine," Dombrovskis.

It is worth noting that on November 30, the European Commission refused to provide Hungary with €13.3 billion for a national development and reconstruction program. The reason for this was the lack of efforts that Hungary is making to reform public administration and the independence of the judiciary.

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