EU Agrees $54 Billion in New Aid for Ukraine in Message to Divided US
German Chancellor Olaf Scholz expressed hope that the European Union’s decision to provide $54 billion in new aid to Ukraine would encourage the United States to take similar action. The move comes as President Joe Biden seeks Congressional support for his demands. EU chiefs in Brussels echoed Scholz’s sentiment, emphasizing the solidarity between the EU and the US. Ukrainian President Volodymyr Zelenskiy welcomed the agreement, stating that the aid would enhance long-term economic stability. The announcement led to an increase in Ukraine’s dollar bonds, and the country expects to receive the first installment of 4.5 billion euros in March from the EU’s shared budget. French President Emmanuel Macron affirmed that the aid sends a clear message to Russia that Europe remains committed to supporting Ukraine.
The agreement follows weeks of negotiations, particularly with Hungarian Prime Minister Viktor Orban, who had previously vetoed the aid in December. Orban has now given his approval after receiving assurances that the funds would not be sourced from Hungary’s allocated share of EU finances. The EU executive has been withholding approximately 20 billion euros from Hungary due to concerns over the erosion of democracy during Orban’s tenure. In return for Hungary’s agreement, the bloc has stated that the release of EU funds will be contingent upon meeting certain conditions. The deal also includes a provision for annual discussions and a potential review in two years if necessary, without an outright veto for Budapest.
The EU leaders, during their summit, also addressed Ukraine’s urgent need for ammunition and missiles, expressing a commitment to expedite their delivery. However, they did not endorse a proposal to inject an additional 5 billion euros into a broader military assistance fund called the European Peace Facility. Some member states argued for the extra funding, but Germany, the largest contributor to the EU budget, believes that the system should be reformed to accommodate bilateral military support from member states. German Chancellor Scholz emphasized that Germany cannot bear the burden of military assistance to Ukraine alone.
The EU’s push for unity comes as tensions escalate in the region amid Russia’s ongoing war in Ukraine. Polish Prime Minister Donald Tusk warned Orban that the time for games was over and urged Hungary to choose a side in the face of the existential challenge posed by Russia’s aggression. Orban, who has faced criticism from the EU over his handling of the rule of law in Hungary, as well as his close ties with Russia, is increasingly feeling isolated within the bloc. A German diplomat noted that Orban’s growing isolation may have played a role in his decision, alongside the economic pressure facing Hungary.
Overall, the EU’s approval of $54 billion in aid for Ukraine is a significant step in demonstrating its unwavering support to the country as it faces ongoing challenges from Russia. The move also reinforces the transatlantic alliance between the EU and the US, with hopes that President Biden can rally support from Congress in a similar manner. The agreement highlights Europe’s commitment to Ukraine’s stability and sends a clear message to Russia that EU support remains resolute. As the geopolitical landscape continues to evolve, and tensions persist, the EU aims to maintain unity and solidarity in the face of external challenges.
