While Brussels has been working to resolve the Hungarian blockade since Prime Minister Viktor Orban vetoed an EU aid package for Ukraine, EU officials have now prepared a possible compromise in exchange for lifting his veto.

Senior EU officials have begun to signal openness to a mid-term review of the four-year aid package for Ukraine next year, which would likely see Orban lift the veto, according to sources familiar with the matter.

An “emergency brake” mechanism is also possible, which any member state could activate if it has concerns to call for a discussion on the issue, they said.

“We have a commitment [με την Ουγγαρία] and that is positive,” an EU official involved in the talks said on Thursday.

The fresh impetus on the issue comes after EU member states agreed on Wednesday (January 10th) to a partial negotiating mandate to open talks with the European Parliament on a €50bn aid package for Ukraine.

The European Commission’s initial proposal for the EU financial aid package aimed to provide Ukraine with stable aid over four years, including €17 billion in grants and €33 billion in loans.

But Hungary objected and said it could approve the funding only if the €50 billion package was split into four annual installments worth €12.5 billion.

Several EU member states oppose this position, as they believe it would deprive Ukraine of long-term planning and effectively give Budapest an “annual veto”.

EU diplomats also said Budapest has made an unrelated request for funds from the EU Recovery Fund (RRF).

While the EU will try to persuade Budapest to lift its veto on Ukraine funding, leaders are therefore considering possible alternatives. But it is doubtful whether an EU-26 agreement can still be found without Hungary.

“Our plan is still to have an agreement with the EU27,” the EU official said.

Generally speaking, it is better to avoid alternatives that bypass Hungary. Those options relate to extending the existing 2023 borrowing program for up to a year, increasing common debt backed by national guarantees or creating a special financing vehicle to disburse the grants, according to several EU diplomats and officials. who have knowledge of the discussions.

European leaders are applying pressure

With less than three weeks to go until the emergency EU summit, EU and Hungarian officials are working to “see what could be acceptable”, according to relevant sources.

“We have been presented with Hungary’s demands, but at least we have a commitment (…) of course [να συμφωνήσουμε]what is being asked may be too difficult and unacceptable for others,” said an EU official.

Some EU member states, such as Italy, do not support the idea of ​​considering EU funding for Ukraine independently of the EU budget review, which is to complement funding in other areas such as migration and investment in defense.

Italian Prime Minister Giorgia Meloni is trying to persuade Orban to drop his opposition and improve relations with President Volodymyr Zelensky, sources in the talks said.

USA “disappointed” by Hungary

Additional pressure for Hungary to agree to funding Ukraine is being exerted by the US, with Washington declaring its “disappointment” with Orban’s policy in Ukraine.

“I think we are disappointed that (…) Prime Minister Orbán has chosen to stand alone in the European Union by questioning the fight to support the Ukrainians,” said James O’Brien, Assistant Secretary of State for European and Eurasian Affairs, in a briefing reporters on Thursday.

Relations between Budapest and Washington have deteriorated significantly in recent times due to Hungary’s obstruction of ratification of Sweden’s NATO membership and Orban’s warm ties with Moscow despite the war in Ukraine.

The senior US official also said he looked forward to fulfilling Budapest’s promise not to be the last to ratify Sweden’s NATO membership.