Von der Leyen Vows €90 Billion Ukraine Loan Success Despite Persistent Hungarian Budget Veto

Ursula von der Leyen vows the EU will deliver a critical €90 billion loan to Ukraine "one way or another" despite Viktor Orbán's attempt to block the funding.

By: AXL Media

Published: Feb 25, 2026, 3:18 AM EST

Source: Information for this report was sourced from Politico

The Steel Porcupine Loan and Financial Commitment

The European Commission has reaffirmed its determination to finalize a massive €90 billion financial package for Ukraine, dubbed the "steel porcupine" loan by President Ursula von der Leyen. This substantial aid package is designed to provide Ukraine with the long term financial stability needed to resist ongoing aggression. Of the total sum, €60 billion is specifically earmarked for military procurement and defense development, while the remaining €30 billion will cover essential state functions. The EU aims to start the first tranche of payments by April 2026 to prevent a looming budgetary shortfall in Kyiv.

The Hungarian Veto and the Druzhba Pipeline Row

The legislative progress of the loan hit a significant roadblock when Hungary refused to approve an amendment to the EU's 2021-2027 Multiannual Financial Framework. Prime Minister Viktor Orbán has linked his opposition to an ongoing energy dispute, demanding that Ukraine restore the transit of Russian oil through the Druzhba pipeline. Hungarian officials have characterized the halt in oil flows as "blackmail," prompting Budapest to utilize its veto power over unanimous budget decisions. Despite having an earlier opt-out from the financial guarantees of the loan, Hungary's approval is still legally required for the specific budget mechanism currently in use.

Strategic Bypassing and Alternative Funding Options

In response to the impasse, EU leaders are signaling that they will not allow a single member state to derail a collective agreement made in December 2025. Commissioner Valdis Dombrovskis noted that two of the three necessary legislative acts can be passed by a qualified majority, allowing technical work to continue. If Hungary maintains its stance, the Commission is prepared to deploy "non-standard" tactics or alternative borrowing structures that do not require unanimity. One potential path involves a 26-member state guarantee system, similar to models used during previous aid cycles where individual countries provide bilateral backing.