EU greenlights accession talks with Ukraine but Orbán vetoes €50-billion aid package

The European Council agreed to open accession negotiations with Ukraine and Moldova.
The European Council agreed to open accession negotiations with Ukraine and Moldova. Copyright European Union 2023.
Copyright European Union 2023.
By Jorge LiboreiroMared Gwyn Jones & Alice Tidey
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The European Union decided Thursday to open accession negotiations with Ukraine and Moldova. But hours later, Viktor Orbán used his veto power to block a €50-billion aid package for the war-battered nation.

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The special fund, which combines €33 billion in low-interest loans and €17 billion in grants, is part of a broader review of the bloc's common budget that has pitted member states against each other, as they haggled over fresh money, redeployments and savings.

After a drawn-out debate that extended into Friday morning, the heads of state and government reached a preliminary deal on the Ukraine Facility, a €50-billlion special fund to help Kyiv keep the economy running between 2024 and 2027.

But Hungarian Prime Minister Viktor Orbán made good on his threat and wielded his veto power to derail the hard-forged consensus. As budget matters require unanimity, it was impossible for leaders to move forward with the €50-billion fund.

The issue will be re-discussed in January, said European Council President Charles Michel, in the hope of finding the necessary 27 votes. Sweden needs to consult its national parliament before giving its formal blessing.

The narrow timeline is politically risky: as of today, Brussels only has one payment left for Kyiv, worth €1.5 billion and scheduled to be released at the end of December. 

Michel nevertheless sought to downplay Hungary's opposition to the package, touting that "in a few hours, we succeeded to make a balanced proposal with a broad political support."

"It is showing that we are serious, it is showing that we want to be credible and we want to do everything to protect and to defend those fundamental interests and to provide more stability. We need stability and especially in those very complex geopolitical times," he said.

The Council president would not be drawn to comment on whether his services could envisage proceeding with a support package backed by the 26 member states and without Hungary, telling reporters at around 03:00 CET: "I don't want to say too much about the proposal of the next meeting. We have various tools in our hands to ensure that we deliver on our political promises."

The debacle comes mere days after Ukrainian President Volodymyr Zelenskyy travelled to Washington in an unsuccessful bid to persuade US lawmakers to approve additional aid for his country, mainly to purchase weapons from American manufacturers.

Kyiv has warned it faces a ballooning €40 billion budget deficit next year, a hole that only Western provisions can fill. The EU and the US are expected to shoulder the largest share of responsibility. But the latest developments on both sides of the Atlantic have drastically increased the chances of a sudden interruption in foreign aid.

"I would like to send a positive and a reassuring signal, because we have tools to guarantee that we are reliable and that Ukrainians can count on our support," Michel said, when asked about that possibility.

'A message of hope'

Despite the fiasco of the financial aid, the summit delivered a momentous breakthrough when leaders agreed to begin accession negotiations with Ukraine and Moldova, two countries that submitted their membership bids in the early days of the war. The green-light is seen as a stern rebuke to Vladimir Putin's forceful attempts to exert control over Russia's immediate neighbourhood.

Member states also granted Georgia the status of candidate country, prompting street celebrations in the nation's capital, Tbilisi.

Additionally, the bloc will open negotiations with Bosnia and Herzegovina "once the necessary degree of compliance with the membership criteria is reached." The Balkan country's progress will be assessed in progress set to be unveiled in March.

"It's a very powerful political signal, it's a very powerful political decision," President Michel told reporters after the blessing became official.

"And today and tonight I think, to the people of Ukraine, we are on their side and this decision made by member states is extremely important for the credibility of the European Union."

"It was important that no member state would oppose the decision and this is why we were in a position to make this announcement tonight," Michel added.

The breakthrough on enlargement was all the more surprising as it came amid Viktor Orbán's antagonistic rhetoric.

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In the days leading up to the meeting, Orbán had questioned Ukraine's readiness to start negotiations and the European Commission's credibility as an impartial arbiter. After being declared a candidate country in June last year, Ukraine was given seven reforms to fulfil as a precondition to start the talks. Brussels has said the country has fully completed four out of the seven reforms, with work underway in the fields of anti-corruption, de-oligarchisation and the rights of minorities.

This progress, estimated at "well over 90%," was declared enough to allow Kyiv into the next phase, something that Budapest has vehemently challenged.

In a short video posted on X, formerly Twitter, right after the decision was taken, Orbán doubled down on his opposition but admitted to having abstained. It was later revealed that German Chancellor Olaf Scholz suggested the Hungarian premier leave the room.

"Hungary's position is clear: Ukraine is not prepared to start negotiations on EU membership. It is a completely senseless, irrational and incorrect decision to start negotiations with Ukraine under these circumstances, and Hungary will not change its position," Orbán said.

"On the other hand, 26 other countries insisted that this decision be made. Therefore, Hungary decided that if the 26 decide to do so, they should go their own way. Hungary does not want to share in this bad decision, and for this reason, Hungary did not participate in the decision today."

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The news from Brussels quickly prompted a succession of social media posts celebrating what many leaders described as a "historic day."

"This is a victory for Ukraine. A victory for all of Europe. A victory that motivates, inspires, and strengthens," wrote President Zelenskyy, who delivered a video message during the summit urging leaders to make a positive decision.

"History is made by those who don’t get tired of fighting for freedom," he added.

"Moldova turns a new page today with the EU's go-ahead for accession talks. We're feeling Europe's warm embrace today. Thank you for your support and faith in our journey," said Moldovan President Maia Sandu. "We're committed to the hard work needed to become an EU member. Moldova is ready to rise to the challenge."

Georgian President Salome Zourabichvili spoke of a "monumental milestone for Georgia" and the rest of the continent. "The unwavering will of the Georgian people has spoken, leading to the well-deserved attainment of candidate status," Zourabichvili wrote. "Georgia's reunification with its European family is an irreversible prospect!"

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Estonian Prime Minister Kaja Kallas said the moment had happened "against all odds," while her Finnish counterpart, Petteri Orpo, called it an "important message of hope."

"Europe is not leaving Ukraine behind," said Belgium's Alexander De Croo. "Today, it was the necessary signal to Ukrainians, but also to Moscow."

Ursula von der Leyen, the president of the European Commission and one of Kyiv's staunchest advocates, hailed "a strategic decision and a day that will remain engraved" in the bloc's history. "Proud that we have lived up to our promises and delighted for our partners," von der Leyen said.

Meanwhile, Taoiseach Leo Varadkar offered his take on the discussions that had preceded the thumbs-up.

"Prime Minister Orbán made his case and made it very strongly. He disagrees with this decision and he's not changing his opinion in that sense," Varadkar told reporters.

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"Any member state has the power to block accession, block enlargement, block talks with another country to join, and he (Orbán) took the decision not to do that, and I have to say I respect the fact he didn't do that because it would've put us in a very difficult situation."

Thursday's decision is but a first step in a protracted, arduous process that covers 36 thematic chapters and can span years before leading to full membership.

The next task will be to draft a negotiating framework, a detailed document that sets the principles and guidelines for the accession talks, which will have to be endorsed by the 27 member states by unanimity. This could happen as soon as March, provided Ukraine has fully satisfied the remaining three preconditions.

This piece has been updated to include more reactions.

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