EU Funding Decision Punted To Jan 2024 After Hungary Veto

In an unexpected reversal, the European Council has been unable to come to an agreement on amending the EU's multiannual financial framework (long-term budget, MFF) to allow for the provision of EUR50bn to Ukraine over 2024-27 in grants and loans following a veto from Hungarian PM Viktor Orban. The block was somewhat unexpected, given that the European Commission's unfreezing of EUR10.2bn in cohesion funding earlier in the week was seen as crucial for softening the Hungarian decision.

• Instead, Orban did not veto the EU's decision to offer to start accession talks with Ukraine (and Moldova), despite vehement opposition to the prospect. Politico reportsthat in a seemingly coordinated move with German Chancellor Olaf Scholz, Orban left the summit room for a period to allow the vote on offering accession talks to take place without forcing Orban to officially veto or abstain.
• While the offer of accession talks is a significant step for Kyiv, the lack of commitment of long-term financial support will be a major concern to Ukraine's war effort, especially as the US Congress continues to founder in its ability to pass a military support package.
• At the EUCO, Estonian PM Kaja Kallas stated that "Ukraine will not be left without support...We will find a solution on funding for Ukraine", adding that an emergency leaders' summit on the topic is likely in Jan 2024. At the same summit, Belgian PM Alexander De Croo states that "We can see the framework for an agreement on financial support for Ukraine."