EU summit in Brussels: Orbán maintains veto on €90bn Ukraine loan

The European Council summit in Brussels has addressed the Ukraine agenda item through an exchange of views with President Volodymyr Zelenskyy and the adoption of conclusions on support for Ukraine – but endorsed only by 25 member states, excluding Hungary and Slovakia.

Hungarian Prime Minister Viktor Orbán’s veto remains firmly in place, blocking full implementation of the €90 billion ($103 billion) loan package for Ukraine, originally agreed unanimously in December 2025.

The loan, detailed in the 18 December European Council document (EUCO 26/25), aims to finance Ukraine’s defence, salaries, pensions, and economic recovery through 2026-2027 via EU borrowing backed by the budget (with potential repayment from future Russian reparations). Hungary, the Czech Republic, and Slovakia had opt-outs from direct contributions under enhanced cooperation.

Orbán reversed his stance in February 2026, conditioning approval on the resumption of Russian oil transit through the Druzhba (“Friendship”) pipeline – damaged in a January 2026 Russian strike – which supplies Hungary and Slovakia via Ukraine. While Ukraine blamed Moscow for the damage and cited repair timelines, Hungary accused Kyiv of deliberate obstruction.

To address the impasse, European Commission President Ursula von der Leyen and European Council President António Costa offered EU technical support and funding for repairs shortly before the summit. Zelenskyy accepted on 17 March, welcoming the assistance to accelerate repairs and explore sustainable alternatives – a move many viewed as an “off-ramp” for Orbán. However, Orbán arrived unmoved, insisting: “We are waiting for the oil, the rest is fairy tales,” and reiterating that “if there is no oil, there is no money” for Ukraine.

During the summit, leaders held an exchange with Zelenskyy (via video link), where he underscored the funding’s urgency amid the war’s fifth year and rejected the pipeline dispute as political blackmail. Ukrainian officials stressed the loan as an investment against Russian aggression.

Other leaders sharply criticized Orbán, accusing him of leveraging the veto for domestic gain ahead of Hungary’s 12 April parliamentary elections, where Fidesz trails opposition leader Péter Magyar’s Tisza Party. Finnish Prime Minister Petteri Orpo called it “not good” and a betrayal of the December deal. Dutch Prime Minister Rob Jetten deemed the veto “unacceptable,” while others described discussions as tense and frustrating.

No full 27-member joint declaration was adopted on the loan or related issues (such as the 20th sanctions package against Russia, also blocked by Hungary and Slovakia). Instead, conclusions on Ukraine support were issued without Orbán’s and possibly Slovakia’s endorsement – a recurring workaround for unanimity hurdles on foreign policy and budget matters. This does not fully activate the loan, as key elements like budget revisions require consensus.

Frustration with Orbán’s stance has grown, with some calling it a test of EU trust and decision-making. No breakthrough on the veto has occurred today, keeping the funding lifeline for Ukraine in limbo.

As the summit continues, leaders are focusing on the military escalation in the Middle East – particularly the situation involving Iran – and its direct implications for the EU, including surging energy prices, energy security, and broader geopolitical fallout. Discussions also cover ways to bolster the EU’s strategic competitiveness and resilience in the global context, building on prior informal retreats with a push toward a “One Europe, One Market” agenda featuring concrete measures and deadlines. Other major topics include the preparation of the next long-term EU budget – the so-called multiannual financial framework (MFF) for 2028-2034 and its role in supporting competitiveness; European security and defence priorities; and migration challenges. The summit, which may extend into Friday, also features a Euro Summit session in the margins to review the euro area economy and progress on economic and monetary union.

Caption: Italian Prime Minister Giorgia Meloni (L) and Hungarian Prime Minister Viktor Orban (R) prepare for a family picture during a formal meeting of the members of the European Council in Brussels, Belgium, 19 March 2026. Leaders are expected to discuss the situation in the Middle East and Iran, continued support for Ukraine, European competitiveness, defence readiness and migration amid rising geopolitical and economic tensions. EPA/OLIVIER MATTHYS