The European Union decided Thursday to open accession negotiations with Ukraine and Moldova. But hours later, Viktor Orbán used his veto power to block a €50-billion aid package for the war-battered nation.

The special fund, which combines €33 billion in low-interest loans and €17 billion in grants, is part of a broader review of the bloc’s common budget that has pitted member states against each other, as they haggled over fresh money, redeployments and savings.

After a drawn-out debate that extended into Friday morning, the heads of state and government reached a preliminary agreement on the Ukraine Facility, a €50-billlion special fund to help Kyiv keep the economy running and sustain essential services

But Hungarian Prime Minister Viktor Orbán made good on his threat and wielded his veto power to derail the hard-forged consensus. As budget matter require unanimity, it was impossible for leaders to move forward with the €50-billion fund.

The issue will be re-discussed in January, said European Council President Charles Michel, in the hope of finding the necessary 27 votes. The timeline, however, is politically risky: as of today, Brussels only has one payment left for Kyiv, worth €1.5 billion and scheduled to be released at the end of December. 

Michel nevertheless sought to downplay Hungary’s opposition to the package, touting that “in a few hours, we succeeded to make a balanced proposal with a broad political support.”

“It is showing that we are serious, it is showing that we want to be credible and we want to do everything to protect and to defend those fundamental interests and to provide more stability. We need stability and especially in those very complex geopolitical times.”

He however wouldn’t be drawn to comment on whether his services could envisage proceeding with a support package backed by the 26 member states in favour and without Hungary, telling reporters at around 03:00 CET: “I don’t want to say too much about the proposal of the next meeting. We have various tools in our hands to ensure that we deliver on our political promises.”

The debacle comes mere days after Ukrainian President Volodymyr Zelenskyy travelled to Washington in an unsuccessful bid to persuade US lawmakers to approve an extra $61 billion in aid for his country, mainly to purchase weapons from American manufacturers.

“I can inform you that 26 leaders agreed on the (budget negotiation),” Michel said. “I should be very precise. One leader, Sweden, needs to consult its parliament, which is in line with the usual procedure for this country, and one leader couldn’t agree.”

‘A message of hope’

Despite the fiasco of the financial aid, the summit delivered a momentous breakthrough when leaders agreed to begin accession negotiations with Ukraine and Moldova, two countries that submitted their membership bids in the early days of the war. The green-light is seen as a stern rebuke to Vladimir Putin’s forceful attempts to exert control over Russia’s immediate neighbourhood.

Member states also granted Georgia the status of candidate country, prompting street celebrations in the nation’s capital, Tbilisi.

Additionally, the bloc will open negotiations with Bosnia and Herzegovina “once the necessary degree of compliance with the membership criteria is reached.” The Balkan country’s progress will be assessed in progress set to be unveiled in March.

“It’s a very powerful political signal, it’s a very powerful political decision,” Charles Michel told reporters after the blessing became official.

“And today and tonight I think, to the people of Ukraine, we are on their side and this decision made by member states is extremely important for the credibility of the European Union.”

“It was important that no member state would oppose the decision and this is why we were in a position to make this announcement tonight,” Michel added.

The breakthrough on enlargement was all the more surprising as it came amid Viktor Orbán’s antagonistic rhetoric.

In the days leading up to the meeting, Orbán had questioned Ukraine’s readiness to start negotiations and the European Commission’s credibility as an impartial arbiter. After being declared a candidate country in June last year, Ukraine was given seven reforms to fulfil as a precondition to start the talks. Brussels has said the country has fully completed four out of the seven reforms, with work underway in the fields of anti-corruption, de-oligarchisation and the rights of minorities.

This progress, estimated at “well over 90%,” was declared enough to allow Kyiv into the next phase, something that Budapest has vehemently challenged.

In a short video posted on X, formerly Twitter, right after the decision was taken, Orbán doubled down on his opposition but admitted to having abstained. It was later revealed that German Chancellor Olaf Scholz suggested the Hungarian premier leave the room.

“Hungary’s position is clear: Ukraine is not prepared to start negotiations on EU membership. It is a completely senseless, irrational and incorrect decision to start negotiations with Ukraine under these circumstances, and Hungary will not change its position,” Orbán said.

“On the other hand, 26 other countries insisted that this decision be made. Therefore, Hungary decided that if the 26 decide to do so, they should go their own way. Hungary does not want to share in this bad decision, and for this reason, Hungary did not participate in the decision today.”