Hungary could face a fresh dispute with major European Union member states over its decision to stay out of a proposed EUR 45 billion loan for Ukraine, as disagreements over Kyiv’s financing threaten to spill into negotiations on the bloc’s next long-term budget.
EUR 45 billion loan puts Hungary at odds with Kyiv’s supporters
The EU is considering raising the money on financial markets, backed by its common budget, to help cover Ukraine’s funding needs in 2027. Hungary, Slovakia and the Czech Republic are expected to remain outside the proposed arrangement, continuing their opposition to participating in joint EU borrowing for Ukraine.
According to Politico, diplomats say some of Kyiv’s strongest supporters could take a tougher line towards countries declining to contribute when negotiations begin over the EU’s 2028–2034 budget. The talks will determine the scale and distribution of future cohesion and agricultural funding, making the dispute potentially significant for Budapest.
German diplomat questions increased EU support
A German diplomat quoted by Politico questioned why German taxpayers should finance increased cohesion payments for countries that do not participate in common efforts to support Ukraine’s security. The remarks suggest that Hungary’s stance could become a point of contention in broader budget negotiations, although Berlin has not formally announced that participation in the loan would be a condition for receiving additional EU funding.
The issue could complicate Hungarian Prime Minister Péter Magyar’s stated ambition to secure an additional EUR 2 billion in EU funding in the next budget period, partly to compensate for support Hungary has previously lost. Cohesion funding helps finance infrastructure, regional development, business support and energy projects.
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PM Magyar’s position remains unclear
Hungary’s position may also extend beyond the previous government of Viktor Orbán. Slovak Prime Minister Robert Fico has said he discussed the issue with Magyar and that they agreed their countries would not participate in joint borrowing for Ukraine. Magyar has not publicly confirmed that account or outlined his position in detail.
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Loan and budget arrangements remain undecided
The proposed EUR 45 billion package is itself still under discussion. Ukrainian President Volodymyr Zelensky has previously indicated that Ukraine could need around EUR 70 billion in additional support, while Brussels is also seeking greater contributions from partners including the United Kingdom and Canada. The possible use of frozen Russian assets remains controversial, with Belgium among the countries expressing serious reservations.
EU leaders are expected to revisit Ukraine’s financing at a special summit scheduled for 26–27 November. By then, the debate may clarify both the structure of the loan and whether opposition to it will influence negotiations over future EU spending.
For now, neither the final loan arrangements nor the next EU budget has been agreed. Any direct link between Hungary’s refusal to participate and reductions in, or restrictions on, its future funding remains a possibility rather than an established policy.
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