BRUSSELS (AP) — A rift between the European Union and recalcitrant member Hungary has deepened when Budapest vetoed an 18 billion euro ($18.93 billion) financial aid package to Kyiv, leaving the other 26 nations to scramble to keep the money supply going.
Hungary’s defiant stance also exacerbated an EU dispute over the rule of law under Prime Minister Viktor Orban and his view of Russia’s war in Ukraine.
The nation of 9.7 million was able to use the EU’s intricate institutional rules to frustrate the bloc and its 450 million people on an enormous geopolitical challenge and helping an ally in dire need.
EU Commission Vice President Valdis Dombrovskis said the war in Ukraine demanded unity and speed.
“There are millions of people without water, heat or electricity. So we really need to move forward,” he said.
Dutch Finance Minister Sigrid Kaag added: “It would undermine the credibility of the European Union if we cannot deliver. So it is essential.”
Many of the 26 member states believe Orban is refusing to go along because the EU is threatening to punish Hungary by withholding billions of euros for failing to implement solid rule-of-law reforms. That decision faces a Dec. 19 deadline and the perception is that Hungary is trying to use blackmail against other members.
Orban said his move had nothing to do with vetoing aid for Ukraine but was much more about how the EU should be run.
He called reports about a veto to be “fake news. Hungary is ready to give financial assistance to Ukraine, on a bilateral basis.”
But he said that providing the aid the way his 26 counterparts want to do it “is not the solution. If we continue to go down the road towards a debt community, we will not be able to turn back.” He did not elaborate.
Underscoring the possible rift in the international coalition backing Ukraine against Russia, U.S. Ambassador to Hungary David Pressman said he was traveling to Brussels “to consult with Hungarian officials and senior European Union and NATO counterparts on a range of pressing issues of shared concern. Maintaining unity of purpose at this critical moment is of paramount importance.”
The EU requires unanimity to send Ukraine money through the bloc’s channels, but individual nations are also able to do so on their own, although it is more complicated to coordinate the effort.
The EU’s executive branch proposed that the bloc suspend about 7.5 billion euros ($7.5 billion) in regular funding to Hungary over concerns about democratic backsliding and the possible mismanagement of EU money. The Commission also wants to put conditions on Hungary’s pandemic recovery plan worth 5.8 billion euros and insists Budapest implement 27 “super milestones” on democratic reforms to unlock the funding.