EU Splits Over How to Handle Orbán on Ukraine loan

20.03.2026

EU leaders clashed over how to deal with Hungarian Prime Minister Viktor Orbán as they tried to secure his approval for a €90 billion loan to Ukraine during a summit.

Hungarian Prime Minister Viktor Orban looks into the camera in a jacket
Viktor Orban / Journal of Democracy

Politico reported the divisions among leaders.

Details

EU leaders adopted two different strategies to influence Orbán. Some openly criticized him, while others chose a more cautious, diplomatic approach.

German Chancellor Friedrich Merz accused the Hungarian leader of undermining trust between member states after he refused to back the loan despite agreeing to it in December.

Swedish Prime Minister Ulf Kristersson said the criticism directed at Orbán reached an unprecedented level for EU summits. At the same time, Italian Prime Minister Giorgia Meloni and Belgian Prime Minister Bart De Wever took a softer line, appealing to his position and trying to find a compromise.

One diplomat said leaders have to deal with Orbán “like a six-year-old,” adapting to his behavior.

European officials warn that Budapest’s refusal to support financial aid to Ukraine weakens the EU’s ability to act as a united bloc and damages its credibility on the global stage.

Context

The €90 billion loan aims to fund Ukraine’s public services, defense, security, and long-term stability. All EU countries support the initiative except Hungary, which demands the restoration of oil transit through the Druzhba pipeline, damaged by Russia.

At the same time, Baltic and Nordic countries are considering providing Ukraine with about €30 billion in bilateral loans. They plan to move forward with this option if Hungary continues to block the joint EU package.

Earlier, The Ukrainian Review reported that Ukraine’s budget has enough funds to last until early May 2026 and continue financing defense needs. This became possible after the IMF approved a loan program and disbursed a first tranche of $1.5 billion.