EU leaders will agree to the terms of Hungarian Prime Minister Orban, who insists on an annual review of financial assistance to Ukraine as part of a four-year, €50B package. Budapest wants not only an annual opportunity to exercise its veto power but also wishes to avoid sharing in the higher costs of servicing the EU’s joint borrowing for the recovery fund, arguing that Hungary has not received its money because of problems with the rule of law. With recovery funds for Hungary still frozen and the scheme ending in 2026, Budapest also wants the EU to extend the program by two years until 2028. EU officials say that neither the exemption from paying higher interest costs nor extending the fund’s recovery program is legally possible. According to the FT, the agreement on the annual review of the Ukraine Facility program provides for a debate on the implementation of the program. However, such revisions will not require a unanimous decision of the EU countries. There is still no final decision.
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