EU’s €90BN Ukraine lifeline — Hungary steps back, Slovakia steps in

Ukraine’s long-awaited €90 billion EU loan is slipping out of immediate reach — and Hungary is no longer the main obstacle. Despite signals from Budapest that its veto will be lifted, fresh resistance from Slovakia and entrenched EU bureaucracy are threatening to drag the process into weeks of delay.

Hungary Backs Down — But With Conditions

Hungary’s incoming leadership has moved quickly to defuse tensions, with election winner Péter Magyar pledging to unblock the decision previously held up by Viktor Orbán. He insists the political agreement was effectively sealed at the European Council in December.

But Magyar’s support comes with caveats. He has made clear Hungary does not want to finance Ukraine directly, signalling a push to opt out financially while allowing the broader package to proceed. That nuance risks reopening technical negotiations Brussels thought were settled.

Slovakia Emerges as the New Pressure Point

Attention is now shifting to Bratislava, where Prime Minister Robert Fico is positioning himself as a potential spoiler. His government’s reliance on Russian oil — delivered via the Druzhba pipeline through Ukraine — has become leverage.

Fico has threatened to block the loan unless supply guarantees are restored. EU diplomats believe he is more transactional than ideological, but the threat adds a volatile new layer to already fragile negotiations.

Ukraine Buys Time — But Not Much

Kyiv is projecting calm. President Volodymyr Zelenskyy has pointed to ongoing repairs to oil infrastructure, expected to be completed this spring, as a way to neutralise Slovakia’s concerns.

Economists say Ukraine can manage in the short term. Stopgap measures — including reallocating state funds, dividends from state firms, and military bond financing — could keep the government solvent until mid-summer.

Brussels Scrambles to Accelerate a Slipping Deal

Germany and other EU heavyweights are pushing for rapid disbursement, with fresh talks scheduled among diplomats on April 15. Behind closed doors, pressure tactics are also in play.

Hungary itself remains exposed. Billions in EU funds remain frozen over rule-of-law disputes, giving Brussels potential leverage as it seeks to keep Budapest aligned.

With geopolitical stakes rising and Ukraine’s fiscal buffer finite, the clock is ticking — and the EU’s unity is once again under strain.

Ukraine won’t see €90 billion from EU soon: It’s not because of Hungary