International

EU summit deadlocked as Orban blocks €90bn Ukraine aid

European Union leaders failed to break a bitter deadlock during a high-stakes spring summit in Brussels. In talks stretching into the early hours of Friday, Hungarian Prime Minister Viktor Orban refused to withdraw his veto on a €90 billion financial aid package for Ukraine.

Budapest has tied the funding to energy security. Mr Orban insists he will only lift the veto if Russia resumes oil deliveries through the Drujba pipeline. He argued that without cheap Russian crude, Hungarian households and businesses would face certain bankruptcy.

A divided front on finance

The failure to reach unanimity on Ukraine and new Russian sanctions overshadowed other developments. While the 27 member states remained divided on the budget, they formed a rare united front against US pressure.

EU leaders collectively rejected Donald Trump’s demand for military intervention in the Strait of Hormuz. Despite the institutional refusal, a smaller coalition—including France, Germany, Italy, and the Netherlands—signalled readiness to join the UK and Japan in securing the passage.

Shifted agendas and internal crises

The summit's original focus on economic competitiveness was forcibly sidelined by external conflicts. Initially planned to stimulate the "Single Market," the meeting was consumed by the wars in Ukraine and the Gulf.

Brussels is now seeking "creative solutions" to bypass the Hungarian veto. One proposal involves the European Commission funding repairs to the Drujba pipeline, which was damaged by Russian shelling on Ukrainian territory.

Blame games and solidarity

Kyiv and Budapest continue to trade blame over the pipeline’s status. While Hungary accuses Ukraine of sabotage, President Volodymyr Zelenskyy warned that continued oil imports only serve to "fund the aggressor."

German Chancellor Friedrich Merz did not mince words during the final press conference. He described Mr Orban’s tactics as a "serious breach of the principle of solidarity."

Economic ambitions remain

Despite the political paralysis, leaders adopted a new "Made in Europe" agenda. The plan aims to simplify bureaucracy and introduce a unified EU-wide company registration platform.

The strategy also proposes a uniform "Made in EU" trademark system. Officials hope these measures will bolster European competitiveness in an increasingly unpredictable global landscape.

Translation by Iurie Tataru

Dan Alexe

Dan Alexe

Author

Read more