Zelensky centralizes Ukraine’s anti-corruption agency, triggering EU backlash and fears over democratic backsliding.
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As Europe negotiates tariff relief abroad, it’s facing an unexpected storm at home—this time, from Kyiv. Just as Ukraine was set to receive a major tranche of financial support, President Zelensky stunned Western allies by signing legislation that places Ukraine’s anti-corruption bureau and prosecutorial office under presidential control. The law was rushed through after raids on the bureau’s headquarters, triggering nationwide protests and sharp editorials from outlets like Bloomberg and The Economist, which called the move “sinister” and warned of a dangerous erosion of democratic oversight.
The timing couldn’t be worse. According to Hungarian Prime Minister Viktor Orbán, nearly 20% of the EU’s proposed seven-year budget was earmarked for Ukraine, with another 10–12% dedicated to servicing debt from past aid. The revelation sparked backlash from member states like Germany and has fueled a broader revolt over transparency and fiscal accountability in Brussels. Orbán minced no words: “The EU budget has only one obvious purpose—to bring Ukraine into the EU, and these funds are transferred to Ukraine.”
That backlash is now turning into action. Though not formally announced, the EU has quietly hit pause on additional aid to Kyiv. Officials insist it’s a reassessment, not a reversal—but the shift is clear. Europe’s political calculus has changed, and financial support is no longer guaranteed. With internal governance under scrutiny and battlefield conditions still fluid, Ukraine faces a growing dilemma: without reforms, even its staunchest allies may start to walk. European defense stocks sold off last week in response.
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