Hungary blocks European Commission's backup plan to finance Ukraine - media

Hungary has blocked the issuance of Eurobonds to support Ukraine, depriving the European Union of a possible backup option in case it fails to find a way to use frozen russian assets to finance a EUR 165 billion loan to Kyiv.

Politico writes about this, citing sources among European diplomats.

According to the publication, Budapest's rejection of the idea of issuing joint bonds backed by the seven-year EU budget came a few hours before a meeting in Brussels between German Chancellor Friedrich Merz and Belgian Prime Minister Bart de Wever to discuss the terms of the loan.

Merz had said before the meeting that he intended to use this opportunity to persuade De Wever to reach an agreement.

"I take the concerns and objections of the Belgian prime minister very seriously. I don't want to convince him of anything, I want to convince him of the correctness of the path we have proposed," Politico quoted the Chancellor as saying.

Germany, as the publication notes, offers to cover 25% of the risks associated with the use of frozen russian assets, but the Belgian prime minister demands broader guarantees from the entire EU - up to full compensation for possible losses.

On December 3, the European Commission presented two options for financing Ukraine - through Eurobonds or a loan secured by russian assets. But any mechanism that involves debt obligations on behalf of the entire Union requires unanimity.

Hungary's position significantly complicates the situation ahead of the December 18 summit of EU leaders, Politico emphasizes.