Viktor Orbán’s election defeat removed the EU’s most persistent veto and cleared the way for a €90-billion loan to Kyiv and possible sanctions on Israeli settlers. EU officials say the change in Budapest opens the door to breakthroughs this week on both files.

Hungary vote opens the door

Viktor Orbán lost power in Hungary's election, removing a persistent veto in the European Council that had repeatedly blocked measures including the €90-billion loan package for Ukraine and penalties aimed at violent Israeli settlers, diplomats said.

A meeting of EU foreign ministers is scheduled for Tuesday in Luxembourg to consider measures related to Israel. A separate gathering of diplomats on Wednesday will seek consensus on a budget amendment that officials say is the last step before the bloc can begin a written procedure to adopt the Ukraine loan. Cyprus, which currently holds the EU rotating presidency, put the loan item on the agenda.

The development follows months in which Budapest used its veto as leverage in a row over flows of Russian oil via Ukrainian territory.

Why the €90-billion loan matters

  • The package is intended to shore up Kyiv’s finances for defence and public spending as it resists Russia’s invasion.
  • For the EU, approving the loan tests credibility and unity after a politically agreed package was held up by procedural blocks.
  • Officials say a swift adoption would show the EU can act on major foreign-policy and budget items once internal deadlock ends.
  • Ukrainian President Volodymyr Zelenskyy said the Druzhba pipeline could be back in operation by the end of April, which may ease the technical dispute that prompted Budapest’s veto.

Measures on Israel and the legal mechanics

The EU is considering punitive steps related to Israel’s conduct in the occupied West Bank. Options on the table include targeted sanctions on violent settlers and suspension of parts of the EU-Israel cooperation agreement.

  • Some member states have pushed for stronger action, including suspending sections of the cooperation agreement.
  • Suspending the entire agreement would require unanimity; removing isolated provisions could pass with a qualified majority, giving the bloc more flexibility.
  • Officials say Brussels wants both files to move together: money for Kyiv and diplomatic pressure on Israel over settler violence.

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Diplomats say a swift adoption would signal the EU can end its internal deadlock and act quickly on major foreign-policy and budget items.

This article was created with AI assistance.