Hungary, the Czech Republic and Slovakia are refusing to guarantee the new EU loan to Ukraine. This is putting a strain on the ongoing budget negotiations.
The rift between Brussels and Eastern Europe continues following last week’s EU summit in Brussels. The meeting had two main, interrelated topics: the EU’s long-term budget for the period 2028–2034, and continued financial support for Ukraine.
Hungary, the Czech Republic and Slovakia are demanding to be exempted from contributing to the financial guarantee for a new EU loan to Kyiv, which is intended to ensure that Ukraine can continue its defensive war against Russia, writes Die Welt.
The demand from the Eastern European countries has met with sharp criticism in German diplomatic circles – not least because the three countries are simultaneously insisting on substantial funding from the EU budget.
“This absurdity shows once again how out of touch some people are when it comes to the EU budget,” a German diplomat told Politico.
The diplomat believes that aid to Ukraine is a non-negotiable requirement for securing increased regional funding.
“How can anyone seriously believe that our taxpayers would be willing to transfer even one extra euro in cohesion funds to those who refuse to participate in the defence against the greatest threat to our security?” said the diplomat. He added: “There is no solidarity when people get off scot-free.”
Cohesion funds are EU subsidies intended to reduce economic and social disparities between different regions.
The German diplomat believes that EU taxpayers will react to the stance taken by these three countries. But it is surely EU politicians who are most keen to send tens of billions of euros more to Kyiv.
At the EU summit, Ukrainian President Volodymyr Zelenskyy requested a further 70 billion euros next year, 45 billion of which are to come from EU countries that are already in a deep economic crisis.
Hungary, the Czech Republic and Slovakia have categorically refused to contribute.
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Bulgaria follows up
Last week, Bulgaria’s Prime Minister Rumen Radev the country’s participation in the new economic aid package.
“Bulgaria cannot under any circumstances participate in these 70 billion,” he told journalists in Tvarditsa, according to the Bulgarian news agency BTA.
Radev pointed out that Bulgaria contributed to last year’s EU loan of 90 billion euros to Ukraine, unlike the three countries that also refused to participate on that occasion.
He said that Europe’s economy is being hit hard by the war, which has led to social tensions and political instability. Radev is therefore calling for a swift end to the war:
“The desired outcome will not be achieved by military means.”
Brussels has set a deadline of the end of December to resolve Ukraine’s economic problems, wrote Politico on 22 October.
A document from the summit obtained by Politico states:
‘Work to find solutions to the remaining funding gap for 2027 should begin, with the aim of reaching a political agreement before the end of the year.
International partners should fulfil their financial commitments and step up their efforts … in light of the significant challenges facing Ukraine. A resolute commitment is required to mobilise further support and sustain Ukraine’s defence efforts and essential government functions throughout next year.”
The European Commission hopes that Canada, Japan, the UK and the US will also help to reduce the total amount that the EU has to finance.
However, the White House is more concerned with finding a peaceful solution and addressing the energy crisis, and there is little willingness to pour yet more billions of dollars into a war that the Trump team considers pointless.
