BRUSSELS (AP) 鈥� Leaders of the 27 European Union countries sealed a deal Thursday to provide Ukraine with 50 billion euros ($54 billion) in support for its war-ravaged economy after Hungary dropped weeks of .
European Council President Charles Michel said the agreement 鈥渓ocks in steadfast, long-term, predictable funding for Ukraine鈥� and shows the EU's determination "to support their future, to support freedom.鈥�
The aid package 鈥� about two-thirds loans and one-third grants 鈥� is not intended to help fight off Russia. Apart from supporting the economy and paying for rebuilding, it鈥檚 also aimed at setting Ukraine up for future EU membership. The EU has a separate plan for funding arms and ammunition.
Almost two years after Russia invaded Ukraine, the Ukrainian economy is in shambles. The first months following the 2022 invasion saw the country lose a third of its economic output to wartime destruction and occupation by Russia, which controls .
Inflation soared to 26% because the central bank had to print money to cover budget gaps. The economy rebounded somewhat last year, but Ukraine spends almost all of its tax revenue on the war. That leaves a huge deficit because other bills must also be paid, including pensions and salaries for teachers, doctors, nurses and state employees.
Political infighting in the EU and has held up funding. A combined total of more than $100 billion is at stake.
Michel said the EU's move would also send 鈥渁 signal to the American taxpayers,鈥� which could help the Biden administration in its efforts to get a Ukraine support package through Congress.
In a statement from the White House, President Joe Biden commended the EU鈥檚 "steadfast support for Ukraine as it continues to defend itself against Russian aggression and fulfill the Euro-Atlantic aspirations of its citizens.鈥�
welcomed the assistance in a post on X, formerly Twitter. He said that continued financial help from the EU would strengthen Ukraine's long-term economic stability, "which is no less important than military assistance and sanctions pressure on Russia.鈥�
His country could receive the first tranche of money as soon as March, once the European Parliament has endorsed the deal.
That Hungary lifted its veto, and so quickly, came as a surprise.
Hungarian Prime Minister Viktor Orb谩n, the EU leader with the raised staunch objections to the financial aid in December and . He in recent days.
The populist leader's government has been in a dispute with the European Commission, the EU's executive branch, over Hungary's alleged democratic backsliding. Some of his country's own funding was withheld as a result.
Asked what Orban was offered in exchange for lifting his veto, French President Emmanuel Macron said Hungary "didn鈥檛 receive a gift. It simply got the guarantee that the approach toward it will not be discriminatory.鈥�
In , the 26 other EU leaders agreed that the $54 billion package would run from 2024 through 2027. They also agreed to make Ukraine a candidate for EU membership, which Orb谩n reluctantly accepted.
But the aid package was part of a review of the EU鈥檚 continuing seven-year budget, which requires unanimous approval.
A few leaders, including Michel, German Chancellor Olaf Scholz and Dutch Prime Minister Mark Rutte, met with Orb谩n on the eve of the summit to test ideas for overcoming his veto. Diplomats then worked late into the night on the final wording of the agreement. The breakthrough came at another small-group meeting early Thursday.
A senior EU official said the last-minute consultations in small groups helped to seal a common position and made Orban understand he was isolated. The official with direct knowledge of discussions asked not to be identified in accordance with EU practices.
To help assuage Orb谩n, the leaders agreed that the commission would review the budget in two years, if deemed necessary. But such a review would not include an opportunity for a future veto.
Orb谩n cast the deal as a victory.
鈥淢ission accomplished," he trumpeted on X. "Hungary鈥檚 funds will not end up in Ukraine and we have a control mechanism at the end of the first and the second year. Our position on the war in Ukraine remains unchanged: we need a ceasefire and peace talks.鈥�
On the way into their meeting, some leaders lashed out at Orb谩n, accusing him of . The tensions come amid mounting concern that public support for pouring more money into Ukraine has started to wane, even though a Russian victory could across Europe.
鈥淭here is no problem with the so-called Ukraine fatigue issue. We have Orb谩n fatigue now in Brussels,鈥� Polish Prime Minister Donald Tusk told reporters. 鈥淚 can鈥檛 understand. I can鈥檛 accept this very strange and very egoistic game of Viktor Orb谩n.鈥�
Orb谩n is angry at the European Commission鈥檚 decision to freeze his government鈥檚 access to billions of euros in joint funding.
In response, Hungary has vetoed statements at the EU on a range of issues. Orb谩n exported the problem to NATO, by blocking high-level meetings with Ukraine until only recently. Budapest is also in the trans-Atlantic military alliance.
鈥淚 don鈥檛 want to use the word blackmail, but I don鈥檛 know what other better word鈥� might fit, Estonian Prime Minister Kaja Kallas told reporters as she arrived at EU headquarters.
鈥淗ungary needs Europe,鈥� she said, highlighting the country鈥檚 own economic problems and high interest rates. 鈥淗e should also look into what is in it for Hungary, being in Europe.鈥�
Tusk insisted that there could be 鈥渘o room for compromise on our principles, like rule of law. And for sure there is no room for compromise on the Ukraine question.鈥�
The recently elected Polish leader added of Orb谩n: 鈥淚f his position will dominate in Europe, then Ukraine will lose for sure."
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Associated Press writers Raf Casert in Brussels, Geir Moulson in Berlin and Justin Spike in Budapest, Hungary, contributed to this report.
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Lorne Cook And Samuel Petrequin, The Associated Press
