The European Union is discussing how to use €6.6 billion that was originally earmarked to reimburse member states for military assistance provided to Ukraine, following the lifting of Hungary’s veto, the EU’s top diplomat announced on Tuesday.
Hungarian Prime Minister Péter Magyar, who won the April elections, removed a veto imposed by his predecessor Viktor Orbán on funds intended to support military aid to Ukraine through the European Peace Facility (EPF).
“We have a new Hungarian prime minister, which also means that we are moving forward with the release of €6.6 billion,” said Kaja Kallas ahead of an informal meeting of EU defense ministers in Nicosia.
The EPF funds are intended to compensate EU member states that have supplied military assistance to Ukraine. However, Orbán’s veto while maintaining close ties with Russia even after its invasion of Ukraine had blocked the process, which required unanimous approval from all 27 EU member states.
Kallas stated that she had presented a proposal that would not only reimburse EU countries for previous military deliveries but also allow for additional financial support to continue assisting Kyiv.
“I propose using these funds to reimburse member states for past weapons deliveries, while also financing a new joint procurement mechanism for weapons destined for Ukraine,” Kallas said during a press conference.
Both the EU’s foreign policy chief and several member states have recently expressed support for using part of these funds to help Ukraine purchase or manufacture weapons.
The political change in Hungary has significantly altered the country’s relationship with the European Union.
Budapest has already withdrawn its veto on a €90 billion European loan package for Ukraine. In return, the EU announced the release of approximately €16 billion in European funds for Hungary that had been frozen for years during Orbán’s administration.
Key Points
- EU discussing release of €6.6 billion for Ukraine-related military support.
- Hungary’s new government lifted a long-standing veto.
- Funds may reimburse past military aid and support new weapons procurement.
- Budapest also removed its veto on a €90 billion EU loan package for Ukraine.
- The EU has unlocked approximately €16 billion in previously frozen funds for Hungary.
