EU summit: Hungary blocks €50 billion Ukraine aid deal

German Chancellor Olaf Scholz told reporters as the summit wrapped up that he believed Ukraine would receive the funding pledged by 26 of the 27 EU members, even if Hungary should continue to block the bid. 

"Actually I'm rather confident that we really will reach a deal in January," Scholz said, referring to the bloc's next leaders' summit. 

Pressed on how to proceed should Prime Minister Viktor Orban again veto the move, Scholz hinted at potential workarounds.

"We have other possibilities to help Ukraine," he said. EU officials had also mooted this option, citing bilateral aid as one possible mechanism.

Still, Scholz argued that the bloc should not abandon efforts to approve the spending as part of its regular budget, which he still believed could succeed.

Asked about the EU funding designated for Hungary but still frozen, after a portion of it was unlocked this week, the German chancellor said, "there can be no linking of questions that are not related to each other." 

In an interview on Hungarian television, Orban had implied that securing the remainder of the funds might placate him, saying Hungary shouldn't receive "half, or a quarter, but everything" he said it was "due" from the bloc.

Meanwhile, Scholz described his suggestion that Orban leave the room for the summit's other key vote, on opening EU accession talks with Ukraine, as a "friendly Union proposal." That motion passed with unanimous support, albeit only from the 26 leaders present.

However, after apparently caving on this issue, Orban later said he could still hold up this process at other junctures in the future if he chooses to.

After the European Union put Georgia on a formal membership path during a meeting of EU leaders in Brussels, tens of thousands took to the streets of the country's capital Tbilisi to celebrate.

Waving Georgian and EU flags, cheering crowds flooded Tbilisi's central Freedom Square, news agencies reported.

In orchestra performed Georgia's national anthem and the EU's Ode to Joy.

"I congratulate you on this historic event. Long live united, strong, European Georgia!" Prime Minister Irakli Garibashvili told the crowd. 

EU membership is supported by about four-fifths of Georgia's population.

After Russia launched its invasion of Ukraine, Georgia, Moldova and Ukraine applied to join the 27-nation bloc.

On Thursday European Union leaders granted candidacy status to Georgia.

European Commission President Ursula von der Leyen said the EU would work on an operational solution to finance Ukraine ahead of a new European Union summit early in 2024.

Her comments follow Hungary's veto of the EU's plan to commit €50 billion to support Kyiv in its war against Russia.

"There is now a new rendez-vous early next year. And we will use as a Commission the time until then to make sure that whatever happens at this next European Council, we will have an operational solution," Von der Leyen said.

She added that it is necessary to work on "alternative solutions" in case no unanimity can be found on financing Ukraine.

Earlier European Council chief Charles Michel said a new EU summit to discuss financial support for Ukraine is planned for early in the new year.

Russia said Friday that the European Union's decision to open membership talks with Ukraine and Moldova could destabilize the bloc.

"Negotiations to join the EU can last for years or decades. The EU has always had strict criteria for accession and it is obvious that at the moment neither Ukraine nor Moldova meets these criteria," Kremlin spokesman Dmitry Peskov told reporters.

"It is clear that this is an absolutely politicized decision, the EU’s desire to demonstrate support for these countries. But such new members could destabilize the EU, and since we live on the same continent as the EU, we, of course, are closely watching this."

EU leaders agreed at their summit Thursday to open entry talks with Ukraine, even though it's in the middle of a war with Russia.

They also agreed to give Georgia the status of membership candidate, which Peskov said was also a politicized decision.

"To our regret, often the [EU] desire to demonstrate this political will is dictated in many ways by the desire to further annoy Russia and antagonize the EU in relation to Russia," he said.

Poland's new prime minister, Donald Tusk, has vowed to restore the rule of law in the EU's largest eastern state. His predecessors in government, the Law and Justice Party (PiS) had been at loggerheads with the bloc for years over democratic rights.

"I welcome your commitment to put the rule of law at the top of your government's agenda," European Commission President Ursula von der Leyen said after a meeting with Tusk in Brussels.

Von der Leyen announced the transfer of the first €5 billion ($5.5 billion) of financial aid to Poland that had been frozen.

The funding is part of an EU program to move energy supply away from fossil fuels.

Estonian Prime Minister Kaja Kallas has said the EU will find a solution on approving fresh funding for Ukraine, following a veto yesterday by Hungarian Prime Minister Viktor Orban. 

"When Ukraine is struggling on the military side then we should also provide them political support [...] We will reach an agreement on the financial aid," she told reporters on her arrival for the second day of the summit in Brussels.

"I can assure you, Ukraine will not be left without support, there are different ways to do this," she said. "I am pretty confident we will have a solution by January."

The second day of the EU leaders' summit began on a positive note Friday morning, following the surprising EU decision to open membership talks with Ukraine and Moldova. However, the EU and the prospective new member states have their work cut out for them, said DW Brussels correspondent Rosie Birchard. 

"We can't underestimate the political importance of the decision, this is really being sold as a feel-good moment for European policy. However, while there might be a change in mood overnight, there is certainly no change in practice overnight," she said. 

The process of becoming an EU member states takes years and includes heavy reforms.

"Both sides here from Ukraine and the EU have their homework to do," Birchard said, reporting from the Europa building housing the EU Council in Brussels. 

Birchard said sticking points for Ukraine moving forward will include working on curbing corruption. The EU, for its part, will have to look at its own rule book if it wants to "credibly absorb and open its door" to a large country like Ukraine. 

"There is still plenty of work to do here and there could also be some political roadblocks ahead," she said. "But we know that Kyiv without a doubt has its sights squarely set on a permanent seat at the table here in Brussels." 

On Hungary blocking €50 billion ($54.5 billion) in new EU funding for Ukraine, Birchard said it was "disappointing" for EU leaders, who had hoped to send a political signal to Russia on their long-term commitment in supporting Ukraine. However, the budget issue is likely to be revisited at a future summit, she added. 

Hungarian Prime Minister Viktor Orban told state radio Friday morning that the EU made a "bad decision" to open membership talks with Ukraine and Moldova, and said Hungary would be able to block accession at a later point.

The process for a country to become an EU member statetakes many years, and involves several rounds of negotiations and voting.

Orban said during a "long and difficult" debate, he left the room as 26 other leaders of the European Union's member states voted on beginning talks.

The Russia-friendly Hungarian president also called for the unblocking of frozen EU funds for Hungary before he would consider lifting his veto on allowing €50 billion ($55 billion) worth of fresh EU aid to Ukraine. 

Around €30 billion of EU funds earmarked for Hungary is frozen in a rule-of-law dispute between Brussels and Budapest. Orban has long been accused of holding up EU support for Ukraine as leverage.

"This is a great opportunity for Hungary to make it clear that it should get what it deserves. Not half, then a quarter, but it must get the whole thing," Orban said.

Orban added the funding issue would probably be revisited at a special EU summit in February. 

EU approves accession talks for Ukraine and Moldova

European Union leaders meeting in Brussels for the last summit of 2023 agreed Thursday to open membership talks for Ukraine and Moldova, managing to avoid a veto threat from Russia-friendly member state Hungary. 

The decision was hailed by Ukrainian President Volodymr Zelenskyy as a "victory for Ukraine and Europe."

Hungarian Prime Minister Viktor Orban called the move "irrational" and said his country "did not participate" in the decision. 

Reporting from Brussels, DW's Jack Parrock said Orban left the room during the vote at the request of German Chancellor Olaf Scholz.

"It is possible to overcome unanimity by one leader leaving the room, and essentially what they call it is a 'constructive abstention'," Parrock said. 

Hungary blocks €50 billion Ukraine aid package

However, Orban has not signed off on approving a fresh tranche of EU aid to held fund Ukraine's government with €50 billion ($55 billion) over four years. 

Orban wrote on social media on Thursday evening that the funding issue would be revisited at an EU summit next year "after proper preparation."

EU agrees new sanctions on Russia

Also on Thursday, EU leaders agreed on a 12th round of sanctions against Russia for its war on Ukraine.

The sanctions target diamond exports and better enforcement of an oil price cap. The agreement on the new sanctions is set to be formalized by Friday.

wmr/rt (AFP, Reuters, dpa, AP)