After being pressed by his colleagues, Viktor Orban, the Hungarian prime minister, rescinded a veto he had previously taken on the financial aid package.
The compromise reached at an emergency EU summit came after an unprecedented pressure campaign on Orban. Orban is the only member of the EU that has maintained friendly relations with Russian president Vladimir Putin ever since he began his full-scale invasion of Ukraine nearly two years ago.
Ursula von der Leyen said that the agreement signed on Thursday showed “Europe’s commitment to support Ukraine”.
“We know Ukraine fights for us. . . “We will give them the stability they need,” she said. This sent a strong message to Putin.”
Officials warned that a rupture would be irreparable if Hungary’s leader continued to veto the €50bn package. Kyiv claims the package is crucial for the financial stability of the country as it fights against Russia’s invasion.
Orban’s stubbornness in the last few weeks led the EU to try different approaches. From providing financial incentives, to examining the economic effects of a total cutoff from EU funding.
The incident also led to discussions in some capitals regarding the possibility of Budapest losing its voting rights.
Charles Michel, President of the European Council who is presiding over the discussions between the leaders, stated that the compromise “seals in steadfast funding for Ukraine on a long-term basis”.
The agreement contains a provision that EU leader will hold a debate annually on the implementation package. There is also the option of a review after two years if all members agree.
One senior EU official said, “If we lost this, the stakes would have been really high.” “A very dark path.”
Orban accepted the offer only after negotiating “a control mechanism that guarantees a rational usage of the money”.
He added: “I’m glad to see that markets and other players in the economy are already responding positively to this agreement.”
The European Parliament must now approve the €50bn increase in the EU budget. The vote will take place by the end of the month, meaning that the earliest money could start flowing into Ukraine would be in March.
In talks held on Thursday morning, Orban, Michel von der Leyen, and the three most powerful leaders of the EU – German Chancellor Olaf Scholz and French President Emmanuel Macron as well as Italian Prime Minister Giorgia Melons – reached a compromise.
According to those involved in the negotiations, the other 23 leaders of the bloc then approved the deal.
One EU diplomat briefed about the negotiations said that Orban “came to his senses”.
The EU package of aid, which will fund Kyiv for four years, is crucial to keep Ukraine’s economy afloat, as the Joe Biden Administration has not been able to secure US Congressional approval for its $60bn package. Ukrainian officials warned that if the western aid was stopped, a budget crisis could occur.
In response to the agreement, Volodymyr Zelenskyy, Ukraine’s president, wrote on X that “continued EU financial assistance for Ukraine will strengthen economic and financial stabilization on a long-term basis, which is not less important than sanctions pressure against Russia and military assistance.”
Von der Leyen expressed her hope that the EU’s decision would inspire the US. “It’s an encouragement for the United States to do its fair share.”
Orban had pledged not to accept the funding until the EU granted him a veto annually over the continued payments to Kyiv.
The other 26 leaders had rejected his demand, and some suggested that economic or political pressure might be used to force him into changing position.
The agreement refers, at the request of the Hungarian leader, to an 2020 agreement in which the bloc stated that it would treat each member state equally when deciding whether or not to withhold EU funding.
More than €20bn in EU funds for Hungary is currently frozen due to concerns about the rule of Law and other issues.
The senior EU official said that the deal for 2020 was a “face-saver”. “He calculated the pressure points. . . “I responded accordingly.”