A decision to grant the loan requires unanimity among the 27 EU member states.
Hungary has blocked a €90 billion EU loan for Ukraine, which the European Parliament approved last week. Without the loan, Ukraine will face a budget deficit in the second quarter, according to the Financial Times. This was reported by Zn.ua and PromPolitInform.
According to four people familiar with the matter, Hungary’s EU representative objected on Friday to the issuance of debt guaranteed by the EU budget. A decision to grant the loan requires unanimity among the 27 EU member states.
The publication recalls that Hungary, Slovakia, and the Czech Republic previously agreed to help Ukraine only on the condition that they would not be responsible for interest costs or repayment of the loan, which would be guaranteed by the other 24 EU countries. However, a unanimous decision is still required for the European Commission to use the so-called EU budget reserve for borrowing and lending to Ukraine.
As journalists note, Hungary’s decision coincides with the country’s preparations for elections in April, in which Prime Minister Viktor Orbán could face defeat. Polls show that the opposition Tisza party, led by Péter Magyar, is ahead of Orbán’s Fidesz party by approximately 10 percent.
As a reminder, on February 11, the European Parliament supported three legislative acts allowing Ukraine to receive a €90 billion loan for 2026 and 2027. €30 billion of the loan will be allocated for macro-financial assistance, or budget support, to be provided through the EU Mechanism for Ukraine. An additional €60 billion is earmarked for strengthening Ukraine’s defense potential and supporting the procurement of military equipment and defense products from the defense industries of Ukraine, the EU, and the European Economic Area.
