Financial Times reported that the European Union is working on an alternative plan B for providing macro-financial assistance to Ukraine, bypassing Viktor Orban, Prime Minister of Hungary, who opposes the allocation of funds. According to this plan, the EU can allocate 20 billion euros to Ukraine without the consent of Hungary.
Orban opposes the Program of providing Ukraine with 50 billion euros, which contains military assistance for the Armed Forces. It requires reporting from Ukraine for the funds already allocated and uses the program blocking as a way of resolving the internal issues of the Hungarian judicial system. Despite the veto of Orban, 10 billion euros were unlocked before the EU Summit on December 14.
According to Financial Times, the European Union considers the possibility of borrowing 20 billion euros in capital markets under the guarantees of EU countries with high credit ratings such as Germany and the Netherlands. This will not need the consent of all EU Member States, but only approval of their parliaments. The European Union expects to complete this procedure by March 1, 2024.
In the event that this "Plan B" also fails, there is also a "plan B", which includes providing Ukraine with cheap short -term loans. This will require the approval of most EU countries.
The decision on providing macro -financial assistance to Ukraine also affects the possible allocation of a new tranche from the International Monetary Fund (IMF) worth about $ 900 million.
