Friday, February 20, 2026

Hungary Blocks €90 billion E.U. Loan for Ukraine: Holding the E.U. Ransom

It is one thing for a dog’s tail to lead; even worse is the situation in which the tail refuses to let the dog walk or run. The staying power of the principle of unanimity in the European Council and the Council of the E.U. enables any one of the state governments to block federal policy and law. Such a blockage makes the tyranny of a minority look tame. In contrast, qualified-majority voting ensures that enough of a majority—a “super-majority”—is in place that the resulting minority should lose. The notion that every state government must be “on board” for the E.U. to enact a policy or law is misplaced because governmental sovereignty in that Union is “dual” because both the E.U.’s federal level and the state governments have at least some sovereignty. The same is true of American federalism. Neither the E.U. nor the U.S. is a confederation of sovereign states; only in such a federation does the principle of unanimity fit.

Facing an uphill electoral contest in two months, Hungary’s sitting prime minister, Viktor Orbán, had one of his ministers, Peter Szijártó, announce on 20 February, 2026, “We are blocking the €90 billion EU loan for Ukraine until oil transit to Hungary via the Druzhba pipeline resumes.”[1] This is an obvious example of a part putting its own interest ahead of the whole, which includes not only the E.U. but also the entire world-order, given Russia’s non-provoked aggression in Ukraine for years with impunity. Regarding the E.U., the implication that a federal program should be in the particular interests of each state in order to go forward reduces the E.U. to a mere aggregation in which every part must be satisfied and thus federal action is severely constrained even at the expense of the E.U. itself, meaning the collective interest that goes beyond the aggregate of the particular interests of the states.

Besides the systemic problem in allowing each of 27 states to block federal action and even statements, Hungary’s use of its veto to block the loan demonstrates that the governor of an E.U. state is perfectly capable of wielding the veto power immaturely and irrationally. Szijjártó claimed “Ukraine is blackmailing Hungary by halting oil transit in coordination with Brussels and the Hungarian opposition to create supply disruptions in Hungary and push fuel prices higher before the elections.”[2] In other words, the E.U. state was blaming Ukraine. The problem with that narrative is that the “Druzhba pipeline, which dates back to the Soviet Union, was damaged after it was hit by a Russian strike and that has impacted transit.”[3] That the strike had been unprovoked and Ukraine was in the midst of massive power outages due to other Russian strikes seem not to have registered in Budapest. Ukraine was “in the midst of a difficult winter, with gruelling temperatures below zero. Russia’s constant pounding with missiles and drones means a large part of [Ukraine’s] energy infrastructure has been destroyed and cannot cope with the heating needs of civilians.”[4] Was Ukraine to drop everything to fix the pipeline that Russia had damaged? Rather than make this claim, the governor of Hungary could have weened his state off Russian oil. The rationale for the veto is thus dubious at best, and this in turn raises the question of whether the governors of the E.U. states are capable of having a veto at the federal level, especially as one of the rationales for the E.U. is to forestall war from breaking out between states or between a state and a foreign country. This rationale is but one of ways in which the interests of the whole—the European Union—are not mere aggregates of the particular interests of the states, for none of the states has a mandate to look out for peace throughout the E.U.

That Hungary even has a veto over the loan is a stretch because the E.U. states of Hungary, Slovakia, and the Czech Republic had successfully been granted federal exemptions from contributing financially to the €90 billion loan. It was “subject to unanimity” nonetheless “because it amends the E.U. budget rules to allow borrowing” for a foreign country.[5] That the E.U. allowed exempted states to vote nonetheless is, I submit, yet another indication that the E.U. was still too wedded to the principle of unanimity and the states were too unwilling to give up that power. That Hungary’s use of that power in this instance was so wrong-headed, for Russia rather than Ukraine was responsible for the non-functioning pipeline, adds urgency to the point that the E.U. should finally confront the question of whether to reform itself by expunging the confederation-fitting principle of unanimity.



1. Maria Tadeo and Jorge Liboreiro, “Hungary Blocks €90 Billion Loan for Ukraine over Damaged Pipeline as Tensions Escalate,” Euronews.com, 20 February, 2026.
2. Ibid.
3. Ibid.
4. Ibid.
5. Ibid.