In a significant move, European Union leaders decided to extend an aid package to Ukraine, despite Hungary’s resistance.
What Happened: The EU leaders reached a unanimous decision on Thursday to provide Ukraine with a new aid package of 50 billion euros or $54 billion, Reuters reported. This decision came after weeks of resistance from Hungary.
Before the summit commenced, EU leaders exerted pressure on Hungary to lift its block, emphasizing the gravity of the situation posed by Russia’s war in Ukraine. The aid package was vetoed by Hungarian Prime Minister Viktor Orban in December.
This agreement includes a yearly discussion about it and the option to review it in two years if necessary, with no clear veto right for Hungary.
Following the announcement, Ukrainian President Volodymyr Zelenskyy expressed his gratitude, stating that the aid would enhance the long-term economic and financial stability of Ukraine.
Why It Matters: The decision to extend aid to Ukraine comes during a tense standoff between Hungary and the EU. Hungary’s currency fell following reports that the EU was prepared to sabotage the Hungarian economy if the country blocked the financial aid deal for Ukraine.
Earlier in January, a former World Bank president suggested the transfer of Russian assets to Ukraine as a means of aiding the war-torn country. This proposal was made in an opinion piece for the Financial Times, where he argued that this move could incentivize Ukraine to settle with Russia.
Photo by Milan Sommer on Shutterstock
Engineered by
Biedex Markets Neuro, Edited by
Pooja Rajkumari
The GPT-4-based Biedex Markets Neuro content generation system exploits the
extensive Biedex Markets Ecosystem, including native data, APIs, and more to
create comprehensive and timely stories for you.
Learn more.