Budapest’s veto raises the stakes in the EU’s debate over aid to Ukraine
At the end of the week, Hungary officially rejected the idea of issuing eurobonds to finance assistance to Ukraine — a mechanism considered as a fallback option if the European Union fails to agree on the use of frozen Russian assets. This move significantly complicates negotiations and leaves Brussels with virtually no room for maneuver as it tries to fill the financial gap Ukraine may face as early as next spring.
According to Politico, Hungary’s veto “has deprived the EU of the most obvious Plan B” and put at risk the European Commission’s efforts to push through the €165 billion financing scheme based on revenues generated from the frozen reserves of the Russian Central Bank.
Belgium resists: fears of Russian legal action
The main obstacle remains Belgium’s position. The country holds the majority of the Russian assets frozen on EU territory. Brussels fears that, in the event of lawsuits filed by the Kremlin, the financial burden may fall primarily on the Belgian state.
Despite the Commission’s repeated assurances that legal risks have been minimized, the Belgian government is demanding additional guarantees. As EU diplomats note, Prime Minister Bart De Wever believes that the current safeguards do not sufficiently protect Belgium’s national interests.
Eurobonds as an alternative: why Hungary said “no”
In case the EU fails to reach consensus on using Russian assets, the European Commission proposed issuing eurobonds — joint debt instruments backed by the EU’s seven-year budget. These funds would provide long-term support for Ukraine’s defense and budgetary needs.
However, at a meeting of EU ambassadors, Budapest firmly rejected this option. Two diplomats confirmed to Politico that Hungary refused to support the issuance of joint debt, effectively blocking a potential alternative to the Russian-asset-based plan.
A diplomatic dinner in Brussels: Germany tries to persuade Belgium
Notably, the Hungarian veto came just hours before a working dinner in Brussels between German Chancellor Friedrich Merz and Belgian Prime Minister Bart De Wever. According to Merz, the meeting was intended to help move the talks forward and secure Belgium’s support.
“I take the concerns and objections of the Belgian prime minister very seriously,” Merz told reporters. “I don’t just want to persuade him — I want to convince him that the path we are proposing is the right one.”
Germany has already offered to cover 25 percent of any potential losses, but De Wever insists on a broader guarantee — effectively a full insurance package backed by the entire European Union.
Time is running out: EU leaders meet on December 18
The European Commission hopes to secure unanimous backing from all 27 member states at the December summit. But Hungary’s veto means Brussels now faces extremely tense negotiations, where any member state could become a spoiler.
According to Politico, a rapid breakthrough was never expected, particularly given Belgium’s firm stance and its ongoing concerns over the financial and legal consequences of using Russian assets.
What the proposed assistance package includes
The financial mechanism proposed by the Commission allocates:
- €115 billion to support Ukraine’s defense-industrial sector over the next five years;
- €50 billion to cover Kyiv’s current budgetary needs, including social spending and the functioning of state institutions.
The Commission stresses that without urgent action, Ukraine may deplete its financial reserves as early as April, threatening the functioning of the state amid the ongoing conflict.
This article was prepared based on materials published by Politico. The author does not claim authorship of the original text but presents their interpretation of the content for informational purposes.
The original article can be found at the following link: Politico.
All rights to the original text belong to Politico.
