The Financial Times reported that the European Union is working on an alternative "plan B" to provide macro-financial assistance to Ukraine, bypassing Viktor Orbán, the 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 is opposed to the program of providing Ukraine with 50 billion euros, which includes military aid for the Armed Forces. He demands that Ukraine account for the already allocated funds and uses the blocking of the program as a way to resolve internal issues of the Hungarian judicial system. Despite Orbán's veto, 10 billion euros were unlocked before the EU summit on December 14.
According to the statement of the Financial Times, the European Union is considering the possibility of borrowing 20 billion euros on the capital markets under the guarantees of EU countries with high credit ratings, such as Germany and the Netherlands. It will not require the consent of all EU member states, but only the approval of their parliaments. The European Union expects to complete this procedure by March 1, 2024.
In case this "plan B" also fails, there is also "plan B", which includes providing Ukraine with cheap short-term loans. This would require the approval of most EU countries.
The decision to provide macro-financial assistance to Ukraine also affects the possible allocation of a new tranche from the International Monetary Fund (IMF) in the amount of about 900 million dollars.
