European Union agrees new €50bn aid package for Ukraine

People gather their belongings from a damaged house after Russian shelling in the town of Vyshgorod outside the capital Kiev, Ukraine, 

European Council President Charles Michel says the 27 EU countries have sealed a deal on aid to Ukraine, just over an hour into a summit of the bloc’s leaders and despite threats from Hungary to veto the move.

Key talks had been taking place in Brussels in recent days after Hungary vetoed the previously agreed deal in December.

Speaking on social media, Mr Michel said that there was "unity."

He wrote on X: "We have a deal. #Unity All 27 leaders agreed on an additional €50 billion support package for Ukraine within the EU budget.

This locks in steadfast, long-term, predictable funding for Ukraine.

"EU is taking leadership & responsibility in support for Ukraine; we know what is at stake."

We have a deal. #Unity

All 27 leaders agreed on an additional €50 billion support package for Ukraine within the EU budget.

This locks in steadfast, long-term, predictable funding for #Ukraine.

EU is taking leadership & responsibility in support for Ukraine; we know what is…

— Charles Michel (@CharlesMichel) February 1, 2024

It was not immediately clear if any concessions were made to secure Hungarian prime minister Viktor Orban’s approval.

He raised staunch objections to the financial aid package in December and in the days leading up to Thursday’s summit in Brussels.

That Hungary lifted its veto, and so quickly, came as a surprise. On the eve of the summit, Mr Orban tweeted: “We will stand up for the voice of the people! Even if the bureaucrats in Brussels blackmail us.” Almost two years after Russia’s invasion of Ukraine, the war has ground to a halt and Ukraine’s economy desperately needs propping up.

But political infighting in the EU and in the United States is depriving Kyiv of a long-term source of funding.

Concern has mounted that public support to keep pouring money into Ukraine has started to wane, even though a Russian victory could threaten security across Europe.

“There is no problem with the so-called Ukraine fatigue issue. We have Orban fatigue now in Brussels,” Polish prime minister Donald Tusk told reporters at the EU summit.

“I can’t understand. I can’t accept this very strange and very egoistic game of Viktor Orban.” 

In December, the 26 other leaders agreed on an aid package worth €50bn for this year through to 2027. They also agreed to make Ukraine a candidate for EU membership, which Mr Orban reluctantly accepted.

Leo Varadkar, who is in Brussels, earlier voiced his “frustration” at Mr Orban’s consistent use of the veto to block the money. He has been widely accused of abusing his position by wielding a veto on the matter.

“I’m certainly very frustrated by it, and I think all the other leaders are too. We make big decisions unanimously here in Brussels but it’s done on the basis that everyone acts in good faith.

Matters regarding the EU budget require unanimous support from all 27 member states, and last December Orban blocked the passage of what is deemed vital and existential help for the war-torn country.

Meanwhile massive farmers protests blocked roads and main arteries into Brussels on Wednesday. It follows on from similar protests across Europe – in France, Belgium, Germany. Irish farmers also held rallies to show "solidarity" with their European counterparts.

Farmers are protesting against increased burdens due to policies aimed at protecting the environment, as well as increased administrative burdens and low prices for agricultural goods.

“I’m among a number of heads of government here who understand the pressures farmers are under, be it increased energy costs, fertilizer costs, new environmental regulations. It’s been layer on layer for farmers”, said Mr Varadkar.

In a win for French farmers, French president Emmanual Macron said he would refuse to ratify the EU’s South American Mercosur trade agreement with Brazil, Argentina, Uruguay due to farmers criticisms that it would allow tonnes of beef from countries which don’t have to abide by the same regulatory standards as EU farmers.

“I’d echo calls from Macron that Mercosur can’t be ratified in its current form. We need legally binding or legally enforceable changes around the environment; that would be crucial for us”, Mr Varadkar said.