Brussels delays €16B loan for Hungary over Orbán’s Ukraine veto
The European Commission has delayed the approval of a €16 billion credit plan for Hungary, which is part of the SAFE defense program. This postponement comes in response to the tensions arising from Prime Minister Viktor Orbán's veto on financial support for Ukraine, as reported by diplomatic sources in the Polish press.
The European executive is still evaluating Budapest's funding request, but approval has been postponed due to ongoing political deadlocks within the European Union. Officially, the institution claims that the review of the proposal is ongoing and that a decision will be made "when the plan is ready."
According to diplomatic sources in Brussels, quoted by the Polish station RMF24, the European executive is currently refraining from granting the loan. They cite Hungarian Prime Minister Viktor Orbán's actions, stating that he "violates the principle of loyal cooperation" by obstructing financial support for Ukraine, as DW reported.
The sources also indicate that since February 2026, Brussels has planned to freeze the approval of Hungary's plan under the Security Action for Europe (SAFE) program, which aims to rapidly enhance the defense capabilities of member states. This decision was made in anticipation of the upcoming parliamentary elections in Hungary, scheduled for April, in hopes of potential political changes.
Tensions have escalated since the European Union summit on March 19, when Viktor Orbán reiterated his veto against a €90 billion military aid package for Ukraine. Although European leaders reached an agreement on the aid mechanism in December 2025, Hungary later obstructed the necessary procedures to implement it.
The authorities in Budapest have stated that they will continue their opposition until Ukraine resumes the transit of Russian oil through its territory. This flow was disrupted after damage to the Druzhba pipeline's infrastructure from a Russian attack in late January 2026.
