The EU faces a major budget dilemma.

As the final meeting of the year, the European Union (EU) summit in Brussels this weekend has much to discuss, but the supplemental budget, including funding for Ukraine, appears to be the most contentious issue.

This weekend's EU summit has much to discuss, but the supplemental budget, including funding for Ukraine, appears to be the most contentious issue. (Source: Adobe Stock)

Ukraine's expenses are like a bottomless pit. Last November, Ukrainian Finance Minister Serhiy Marchenko warned that the country would face a budget deficit of $29 billion in 2023 without Western support.

In a supplemental budget plan aimed at assisting Ukraine and covering unforeseen costs within the EU, such as migration and unemployment benefits, Europe anticipates spending up to $66 billion, with $50 billion allocated to Ukraine.

However, this plan is facing difficulties because it was introduced at a sensitive time, when support for Ukraine is beginning to falter. Furthermore, many EU members are borrowing heavily to finance massive expenditures following the Covid-19 pandemic and to cope with the energy crisis.

Hungary opposes funding for Ukraine, arguing that the country still suffers from serious corruption and that the effectiveness of European support to Ukraine in the past needs to be reviewed. Furthermore, Budapest opposes discussions on Ukraine's membership at this conference.

Some Nordic countries are reluctant to contribute contingency funds, which could result in EU member states having to contribute an additional €27 billion. Their argument is: "We cannot provide Brussels with more cash at a time when the economy is struggling."

The divisions are making it difficult to reach a common agreement in Brussels this time, especially regarding assistance to Ukraine. Of course, individual EU members could still provide bilateral assistance to Ukraine, but the image of EU solidarity would be called into question.

Source: https://baoquocte.vn/bang-ngan-sach-dau-dau-voi-eu-253854.html