World
Hungary lists two demands in exchange for lifting veto on Ukraine aid
After derailing December’s summit, Hungary has made fresh demands to Brussels in exchange for a lift on its veto on the European Union’s proposed €50-billion fund for Ukraine.
The envelope, known as the Ukraine Facility, is meant to provide Kyiv with financial assistance between 2024 and 2027 to plug its ballooning public deficit, sustain essential services and pay for reconstruction efforts.
Under the original plan, the Facility was supposed to be already up and running, as Brussels has run out of financial aid for the war-torn nation.
But during a dramatic meeting of the European Council last month, Viktor Orbán waged his veto power to strike down the proposal, which is pegged to a wider review of the bloc’s common budget.
It stalled the EU’s support at a critical time, as Washington also struggled to overcome Republican opposition to approve a new package of military aid. The impasse on both sides of the Atlantic has put Kyiv in an increasingly precarious situation, with Russia stepping up its brutal barrage of air strikes.
However, there’s a glimmer of hope: EU leaders are set to convene again on 1 February to give the Facility a second chance.
Hungary’s two demands
Ahead of the make-or-break date, Hungary has touted an idea to split the package into four annual envelopes, worth €12.5 billion each, according to diplomats with knowledge of the negotiations.
In practice, the divvy-up means that EU leaders would need to give their unanimous approval every year until the cash pot is exhausted. Doing so would run counter to the Facility’s aim to provide long-term, predictable assistance, as it would allow Orbán, or any other head of government, to block the aid as early as next year.
Hungary has also made an unrelated demand about the bloc’s COVID-19 recovery funds, the diplomatic sources said speaking on condition of anonymity.
Under current rules, member states have until the end of August 2026 to complete the milestones and targets necessary to access all the grants and loans they have been allocated. Otherwise, the money that remains unused will be lost.
Budapest is demanding an extra two years be added to this deadline, something that would require re-opening the extraordinary legislation that set up the recovery fund. The reason for this particular request lies in the fact that Hungary has been denied access to its national plan over rule-of-law concerns and could be left with a narrow timetable to spend the funds – if it ever manages to unblock them.
Hungary’s recovery and resilience plan is worth €10.4 billion, of which only €920 million have been released. Separately, the country has €11.5 billion in cohesion funds in the freezer due to a wide array of concerns over public procurement, conflicts of interests, academic freedom and LGBTQ+ rights.
Orbán has repeatedly denounced the situation as “financial blackmail” and his deputies have publicly said the more than €20 billion should be unfrozen – in their entirety – before a decision on the Ukraine Facility can be made.
The quid-pro-quo has intensified since December’s catastrophic summit, resulting in what one diplomat called a “very transactional” attitude, an undisguised “trade-off.”
Another diplomat noted that Hungary was “completely alone” on both the division of the Ukraine Facility and the two-year extension of the recovery funds. Germany was especially critical regarding this second demand.
Hope still alive
Nevertheless, the fact that Budapest is at least floating ideas, rather than inflexibly sticking to its veto, suggests the atmosphere has become more constructive, even if it remains fraught, and there might be limited space for a compromise of sorts.
Ambassadors approved on Wednesday a “partial negotiating mandate” to allow Belgium, the country that currently holds the EU Council’s rotating presidency, to start formal talks with the European Parliament as soon as a solution on the Facility is found.
The mandate, as the name says, is “partial” because it does not include the specific details of the special fund, namely the financial figures. These gaps can only be filled once leaders meet in February and discuss the topic vis-à-vis.
If the 27 member states fail – again – to achieve a breakthrough, Brussels will be forced to design an alternative scheme outside the EU budget with the buy-in of 26 countries only to keep money flowing to Kyiv.
In a recent social media post, Orbán appeared to welcome the so-called Plan B.
“It’s good to see that the European Commission is preparing a plan B for the 1st of February, according to which financial support given to Ukraine could be managed outside the EU budget,” the Hungarian leader wrote. “This is a good decision! The Commission’s plan B is the Hungarian plan A!”
World
Iran closes Strait of Hormuz over ceasefire violations
World
Keir Starmer reportedly considering stepping down as PM and could announce timetable for departure
British PM Keir Starmer could face leadership challenge amid internal troubles
British Prime Minister Keir Starmer faces significant internal pressure following Andy Burnham’s special election win, potentially triggering a leadership contest. Starmer is under fire for economic pressures, illegal immigration issues, and controversies surrounding his previous role in prosecuting grooming gangs. Elon Musk also accused Starmer of complicity.
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British Prime Minister Keir Starmer is reportedly considering stepping down and could announce a timetable for his departure as early as Monday, according to a report published Saturday.
Britain’s Observer newspaper reported that Starmer was discussing his future with his wife at his Chequers country residence before making a final decision.
The outlet reported that senior Labour Party figures expect a statement addressing his future as early as next week.
A government source told Reuters that Starmer remains focused on governing and pointed to previous comments in which he vowed to remain in office.
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British Prime Minister Keir Starmer awaits Switzerland’s Federal President Guy Parmelin on the sidelines of the G7 summit, in Evian-les-Bains, France, Tuesday. (Isabel Infantes/Pool Reuters via AP)
Fox News Digital has reached out to the prime minister’s office for comment.
Pressure on Starmer has been building for months amid growing dissatisfaction within his party and concerns over the government’s handling of the economy and cost-of-living issues.
The political threat to Starmer intensified Friday after rival Andy Burnham won a seat in Parliament, positioning him to mount a formal leadership challenge.
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Britain’s Labour party candidate Andy Burnham speaks to supporters after the Makerfield by-election in Ashton in Makerfield, England, Friday. (Jon Super/AP)
Starmer congratulated Burnham following the victory, writing on X that voters, “chose Labour’s campaign of hope and optimism over division and hate.”
When asked about Burnham’s apparent ambitions to replace him, Starmer insisted he intends to remain in office.
“I’ve said repeatedly I’m not going to walk away from that,” Starmer said.
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Sir Keir Starmer is battling to save his position and refusing to stand aside despite dozens of Labout MP’s demanding he resigns. (Leon Neal/Getty Images)
Starmer has led the Labour Party since 2020 and became prime minister in 2024.
Calls for his resignation intensified last month, with more than 100 Labour lawmakers publicly urging him to step aside or set out a timetable for his departure. Several parliamentary aides also resigned in protest.
The internal revolt followed a series of disappointing local election results for Labour, which lost hundreds of council seats across England, surrendered long-held ground in Wales and fell behind political rivals in Scotland.
UK Prime Minister Keir Starmer speaks a news conference at Downing Street in London, March 5. (Tolga Akmen/EPA/Bloomberg via Getty Images, File)
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Starmer’s popularity has also declined amid a persistently high cost of living, sluggish economic growth and criticism over his acceptance of gifts from wealthy donors.
Fox News Digital’s James Cirrone and Emma Bussey, and Reuters contributed to this report.
World
Trump vows Iran will not charge Strait of Hormuz tolls, but says US might
United States President Donald Trump has pledged there will be no tolls for passage through the Strait of Hormuz, unless they are collected by his own country.
Trump’s statement, made in a Saturday afternoon post on Truth Social, is the latest sign that a recently signed memorandum of understanding (MOU) may be unravelling.
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“There will be NO TOLLS in the Hormuz Strait for 60 days during the Cease Fire Period, and there will be NO TOLLS after the 60 day period has expired,” Trump wrote, “unless they are imposed by and for the United States of America.”
Since the US and Israel launched a war against Iran on February 28, Iran has successfully used the Strait of Hormuz as a pressure point, closing the strategic waterway to traffic.
But under the terms of Wednesday’s ceasefire memorandum, the strait is supposed to reopen for an interim period of 60 days. During that time, Iran is barred from charging vessels for passage.
On Saturday, however, Iran’s joint military command said it had closed the Strait of Hormuz, citing a “clear breach” of the memorandum’s commitments.
US Central Command (CENTCOM), the agency that oversees military operations in the region, denied that report and maintained that the traffic continues to flow through the waterway.
The Strait of Hormuz has long been a flashpoint in the conflict between the US and Iran. Nearly 20 percent of the world’s oil and natural gas is transported through the strait, as well as about 30 percent of the global fertiliser trade.
Closure of the strait has caused global fuel costs to soar and has tested agricultural sectors across the world.
Trump had responded to Iran’s chokehold over the strait by imposing a US naval blockade on Iran’s ports in the region.
But that naval blockade was lifted under the terms of Wednesday’s memorandum. The deal also paused fighting on all fronts in the regional conflict, including in Lebanon.
The memorandum, though, was not intended as a long-term deal. It serves as a launching point for negotiations on key issues, including the future of Iran’s nuclear programme.
Several points of divergence also went unaddressed in the memorandum. Nowhere does the memo say that future tolls cannot be collected from the strait after the 60-day period expires.
Before the war, there was no charge for passage through the strait. Trump himself said in an interview with The New York Times that the waterway should remain “permanently toll-free”.
But he appeared to reverse course in Saturday’s post, once again floating the possibility that the US could extract tolls in the strait, while barring Iran from doing so.
No fees should be levied, Trump wrote, “unless they are imposed by and for the United States of America, should the deal not be completed”.
He explained that such a charge would compensate the US “for services rendered as the Guardian Angel to the countries of the Middle East for purposes of both past, present, and future reimbursement of costs”.
Trump used similar language in his New York Times interview earlier this week, floating the US becoming “the guardian of the Middle East” in exchange for 20 percent of its revenue.
Saturday’s post is not the first time Trump has mused about the US imposing tolls in the strait, either.
In April, for instance, he discussed the idea with reporters, saying, “What about us charging tolls? I’d rather do that than let them have them. Why shouldn’t we? We’re the winner. We won.”
There has been no indication that Trump’s plans have been officially presented to countries in the region, many of whom have struck a careful balance in their dealings with both the US and Iran during the war.
Iranian officials, meanwhile, have repeatedly said they will not rule out imposing tolls in the strait, framing the issue as a matter of sovereignty and regional negotiation. The strait sits between Iran and Oman.
Further discussions are expected on the matter in the coming weeks.
But such negotiations have been thrown into jeopardy amid ongoing Israeli military operations in Lebanon, which threaten to violate Wednesday’s ceasefire memorandum.
Iran claimed that Saturday’s closure of the strait was a result of new Israeli attacks in southern Lebanon, which killed dozens of people after the ceasefire was announced.
Iranian officials have also said that any upcoming talks should focus on proper implementation of the initial memorandum, and that the 60-day negotiating period stipulated in Wednesday’s deal would begin after that was settled.
Pakistan, a top mediator between the US and Iran, has said that follow-up talks are set to begin in Switzerland on Sunday.
Switzerland’s Federal Department of Foreign Affairs has confirmed that an Iranian delegation, led by parliamentary Speaker Mohammad Bagher Ghalibaf and Foreign Minister Abbas Araghchi, has already arrived for the negotiations.
On the US side, Trump’s son-in-law Jared Kushner, special envoy Steve Witkoff and Vice President JD Vance are expected to attend.
Vance departed for Switzerland late Saturday.
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