Hungary Blocks Eurobonds Plan to Support Ukraine
Following the escalation of the Ukraine conflict in 2022, EU member states froze approximately €210 billion ($245 billion) in assets belonging to the Russian central bank, most of which are held by Belgian-based Euroclear.
On Wednesday, European Commission President Ursula von der Leyen outlined two potential approaches to fund Ukraine: borrowing at the EU level through Eurobonds, a plan criticized for its immediate strain on national budgets, or a “reparations loan” linked to the frozen Russian assets, which Moscow has condemned as theft.
The Commission is seeking an agreement ahead of the December 18 summit.
According to the media outlet, Hungary formally rejected the joint borrowing initiative during Friday’s discussions, leaving the EU with only the “reparations loan” as a feasible option.
This is because the loan can be approved with a qualified majority, whereas Eurobond issuance requires unanimous consent.
Budapest has neither confirmed a veto nor commented on the report.
Prime Minister Viktor Orban had previously expressed opposition to both proposals introduced by von der Leyen.
He compared additional support for Kiev to attempting to “help an alcoholic by sending them another crate of vodka,” and advocated for diplomatic engagement with Moscow instead of “burning” more funds on Ukraine’s conflict.
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