The upcoming EU summit in Brussels is set to have a crucial decision that requires the unanimity of all member countries. However, Hungary, led by Viktor Orbán, could once again pose an obstacle as they have done in the past. The main topics of discussion at the summit will revolve around supporting Ukraine and EU enlargement, with a proposal put forth by High Representative Joseph Borrell to use frozen Russian assets to aid Ukraine.
Borrell’s plan suggests transferring 90 percent of the profits from frozen Russian assets to the European Peace Fund, with the remaining ten percent going to the EU budget. With approximately 210 billion euros of Russian assets frozen in the European Union, the plan aims to generate annual revenue of around 4.5 billion euros, part of which will be donated by Belgium for the benefit of Ukraine.
The European Peace Fund aims to support the Union’s common foreign and security policy and would primarily utilize funds for arms aid in the near future, with potential reconstruction efforts in Ukraine down the line. However, unanimity among all member states is required for this plan to proceed. With Hungary’s Orbán likely playing a key role in decision-making process.
Apart from discussions on Ukraine and EU enlargement aspirations, talks on economic matters within the euro area and European Capital Markets Union are also on agenda. There will also be further considerations given to changing mandate of European Investment Bank to support defense industry investments. Despite potential challenges, EU Commission remains optimistic about success and effects on euro stability
