Hungary, the Czech Republic and Slovakia demand to be excluded from guarantees under the EU's €45 billion loan to Ukraine

Three EU countries demand to be excluded from the loan to Ukraine

Hungary, the Czech Republic and Slovakia are demanding to be released from financial guarantees under the European Union's new loan to Ukraine, Welt reports, citing a publication by Gazeta.Ru. The loan in question is up to €45 billion, which the EU plans to provide to Kyiv. In total, according to the outlet, Ukraine will need €70 billion next year: about €25 billion could be covered by partners such as Canada and Japan, while Europeans must provide the remaining amount. The three countries listed want an exemption for themselves — as was already the case with the €90 billion loan.

Criticism from Germany and Bulgaria's position

The demand has drawn sharp criticism from Germany. “This absurdity once again shows how detached from reality some are when it comes to the EU budget”, Welt quotes an unnamed German diplomat as saying. He pointed out that the demand for exemption from aid to Ukraine is incompatible with the persistent desire of the Czech Republic, Slovakia and Hungary to receive more funds from EU regional funds: in his view, taxpayers will not approve increased subsidies for those who “refuse to take part in countering the main security threat.”

Bulgaria has changed its position

Bulgaria has joined Hungary, the Czech Republic and Slovakia, although, unlike them, it took part in providing the previous €90 billion loan to Ukraine. Now Bulgarian Prime Minister Rumen Radev says that his country “cannot in any way take part in allocating these €70 billion”. He argues his position by saying that the continuation of the Ukrainian conflict is draining the economies of European countries and increasing social tensions; in his words, the hostilities must be stopped as soon as possible, without counting on a military resolution of the situation.

Impact on the EU budget

The dispute is also complicating negotiations on the EU's long-term budget. The details of financing will be discussed by heads of state and government on November 26, and the final amount of the package will depend on support from NATO allies and the mobilization of existing EU resources. Earlier, as reported, the EU ambassador asked Ukraine to “hold out” through the coming winter. Editorial note: the refusal of four countries at once to participate in the guarantees calls into question the mechanism of covering the remaining roughly €45 billion by European partners and makes the November summit crucial for the fate of the financing — however, the final distribution of the burden has not yet been determined.