European Leaders Convene in Brussels to Resolve Standoff Over Ukraine Aid

European leaders are gathering to address the ongoing deadlock surrounding financial assistance to Ukraine. The €50 billion aid package for Kyiv faced a hurdle last December when Hungary’s Prime Minister, Viktor Orban, exercised a veto. The move sparked criticism from Polish Prime Minister Donald Tusk, who described it as a “strange and very egoistic game,” emphasizing the potential negative impact on Ukraine if Hungary continued to influence EU policy.

Against the backdrop of substantial farmers’ protests, with over a thousand tractors blocking streets around the European quarter in Brussels, the leaders engaged in talks within the Council building. Protesting high taxes, rising costs, and cheap imports, farmers expressed their discontent by throwing eggs at the European Parliament during the discussions, expected to extend into the night.

Viktor Orban aims to prompt a reconsideration of EU policy towards Ukraine, expressing skepticism about committing to a four-year funding plan when uncertainties about the future persist. Speculations link Orban’s decision to Hungary’s withheld €20 billion in funds due to concerns regarding human rights and corruption.

As the second anniversary of Russia’s invasion of Ukraine looms, impatience is growing among EU leaders regarding Hungary’s stance, preventing crucial funding for Ukraine. Despite reluctantly granting EU candidate country status to Ukraine in the previous summit, Orban’s consistent opposition to sanctions on Russian oil and gas, along with his close ties to Russian President Vladimir Putin, adds complexity to the situation.

There are rumors of potential punitive measures by the EU against Hungary. The Financial Times reported that Brussels officials might consider economic consequences if Orban blocks the support package for Ukraine again. Orban’s political director countered, accusing Brussels of using “blackmail against Hungary.”

In the aftermath of the previous summit, Orban suggested external financing for Ukraine outside the EU budget. However, he now signals openness to using the budget and lifting the veto, with the condition of an annual vote before the release of each aid tranche. EU leaders, wary of exposing themselves to an annual veto threat, are unlikely to endorse this proposal.

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Simultaneously, the summit unfolds amid weeks-long farmers’ protests across major European countries, triggered by EU measures aimed at enhancing agricultural sustainability and the lifting of quotas on Ukrainian grain exports. The European Commission addressed some concerns by proposing exemptions and introducing a “safeguard mechanism” to reimpose emergency tariffs on Ukrainian imports if market destabilization is imminent.

Despite these efforts, the EU’s farmers’ association remains dissatisfied, stating that the safeguard mechanism falls short of providing sufficient relief for producers. As dozens of tractors continue to converge on central Brussels for further demonstrations, the outcome of the summit remains uncertain, carrying significant implications for both Ukraine and the European agricultural sector.

Source: The BBC