Magyar Signals Rethink on Blocking €90bn Loan to Ukraine

The change in political leadership in Hungary following Peter Magyar’s election victory has raised expectations in the European Union of a shift away from Budapest’s previous policy. Long-time prime minister Viktor Orban had blocked key decisions, including a €90bn ($97bn) loan to Ukraine.

Although Magyar has not confirmed that the veto will be lifted, he has indicated a willingness to review the situation. He has also questioned the rationale for the blockade, noting that Hungary has an exemption from the financial obligations linked to the loan.

According to Euractiv, European leaders view his victory as an opportunity to restore cooperation and expect that the new cabinet could unblock key decisions. At the same time, they caution that Magyar remained reserved during the election campaign, particularly on Ukraine.

“I think generally we should be cautious in expecting too much from Magyar. He’s no saint,” one diplomat said.

Even if the veto is lifted, the disbursement of funds will take time, as the process requires approval of multiple documents and administrative steps. Magyar aims to form a government by early May.

Slovakia’s position remains uncertain. Prime Minister Robert Fico (Smer) has indicated that Bratislava could take over the blocking of the loan if the issue of oil supplies through the Druzhba pipeline is not resolved. European officials acknowledge, however, that persuading Slovakia may prove easier than in Orban’s case.

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