Poland’s premier criticizes Hungary over blocking EU loan to Ukraine

Yesterday 18:00

By: Sahili Aya

Poland’s premier criticizes Hungary over blocking EU loan to Ukraine

Poland’s prime minister has publicly criticized Hungary for blocking a major European Union financial package intended to support Ukraine, deepening tensions within the bloc over aid to Kyiv.

Speaking after recent EU discussions, Donald Tusk expressed frustration at Budapest’s refusal to approve the final steps of a substantial loan plan designed to bolster Ukraine’s military resilience and economic stability in the coming years. The package, worth around €90 billion (approximately $106 billion), had received broad political backing among EU member states.

The initiative was structured to provide long-term financial assistance for 2026 and 2027. It would be financed through borrowing on capital markets under the umbrella of the European Union budget, avoiding direct financial contributions from certain member states. Supporters argue the mechanism demonstrates collective responsibility while limiting immediate national fiscal pressures.

Hungary, however, has withheld its consent by refusing to endorse a necessary amendment to the EU’s long-term budget framework. The government of Viktor Orban maintains that its position is linked to energy security concerns. Hungarian officials have stated they will not lift their objection until oil transit through the Druzhba pipeline to Hungary is fully restored, following disruptions attributed to damage in Ukraine. Kyiv has rejected accusations that it deliberately halted supplies.

Tusk warned that blocking the loan risks undermining European unity at a time when Ukraine continues to defend itself against Russian aggression. He stressed that the financial support is structured as a loan rather than a grant and argued that long-term repayment mechanisms, potentially linked to future reparations, would protect European taxpayers.

The standoff has revived debate in Brussels over unanimity rules that allow a single member state to delay or block collective decisions. European institutions have repeatedly emphasized the importance of cohesion in sustaining assistance to Ukraine, particularly as the conflict enters a prolonged and costly phase.

Observers note that Hungary’s stance also unfolds against a backdrop of domestic political considerations, with national elections approaching. The disagreement highlights the broader strategic challenge facing the EU: balancing internal consensus with continued external solidarity.