Hungary has recently vetoed a significant EU loan of €90 billion ($106 billion) intended for Ukraine, as reported by the Financial Times. This loan was agreed upon in December but required unanimous approval from all 27 EU member states, a prerequisite that Hungary has now obstructed. The financial package was split into €60 billion earmarked for military assistance and €30 billion designated for general budgetary support, highlighting its dual purpose of aiding Ukraine amid ongoing conflict and supporting its government finances.

The Hungarian representative's objection was based on multiple discussions among EU officials, although specific details regarding their concerns have not been disclosed. This decision by Hungary comes in the context of previous opt-outs from similar financial schemes by other EU members, indicating a broader hesitance regarding joint borrowing strategies within the bloc. Observers note that this veto could potentially complicate the EU's ability to provide robust support to Ukraine, particularly as the country continues to face challenges from the ongoing war with Russia.

The proposed EU loan is notable because its repayment is contingent upon Ukraine receiving war reparations from Russia, further complicating the financial landscape in which Ukraine is operating. The initial plan was to seek a larger reparations loan of about €140 billion, which faced its own difficulties, primarily revolving around the necessary consensus among EU states for utilizing frozen Russian assets. Hungary's veto exemplifies the fracturing unity within the EU regarding financial support for Ukraine, raising questions about future collaborations and strategic decision-making within the union.