Hungarian gov't finally backs EU macro-financial assistance to Ukraine

The Hungarian government has decided to conclude a state guarantee agreement for the exceptional EU macro-financial assistance to Ukraine, and the decision has been published in the recent Hungarian Official Gazette.

Accordingly, the Government agrees with the European Parliament and Council Decision (EU) 2022/1201 on the conclusion of an agreement with the European Commission and the preparation by the European Commission of the exceptional EU macro-financial assistance to Ukraine, the text of the State Guarantee Arrangement based on Decision (EU) 2022/1628 of the European Parliament and of the Council of 16 December 2009 reinforcing the Common Fund by means of Member States' guarantees and specific provisioning arrangements covering certain guaranteed financial obligations of Ukraine pursuant to Decision No 466/2014/EU and amending Decision (EU) 2022/1201.

Minister of Finance Mihály Varga was given the task by Prime Minister Viktor Orbán, to ensure that the agreement is concluded and signed on behalf of the Government without delay.

The background to the case is that, after a long period of blocking and despite tough messages, the government agreed late last year to support Ukraine through the EU's joint debt solution (rather than on a bilateral basis, as it had originally wanted).

Portfolio reported on the substance of the EU agreement here:

Cover photo: MTI/Prime Minister's Press Office/Zoltán Fischer