Hungary Vetoes EUR18bn Aid To Ukraine, All 26 Other Member States In Favour

Confirmation from the ECOFIN meeting of EU finance ministers that Hungary has vetoed the planned EUR18bn in financial assistance to Ukraine, despite all 26 other member states voting in favour of the package.

• The Hungarian gov't has given its official reasoning behind the veto as it would prefer bilateral support packages to be made with Kyiv.
• However, many observers have seen the veto as an attempt to force the EU's hand in not withholding EUR7.5bn in cohesion funding from Budapest for breaches of EU rule of law standards by the gov't of PM Viktor Orban.
• Czech Finance Minister Zbyněk Stanjura stated "Our ambition remains to start disbursement of aid to Ukraine in early January,” and that the EU would 'examine alternative solutions supported by 26 [member states].'
• The veto on aid, as well as on a minimum corporate tax rate, could see EU member states back down in their stance on withholding cohesion funding from Hungary, with some signs that France, Germany and Eastern EU members are seeking to allow Budapest a portion of the funds for having met some but not all EU demands on rule of law.
• Alternatively, it could see member states double down on the Commission and European Parliament's recommendation of a withholding of funds, as they do not want to be seen to be giving in to Hungarian 'blackmail' on the issue. A decision must be made by 19 December or the funds will be dispersed.