The European Commission is examining legal avenues to circumvent Hungary’s veto of a €90bn loan, in a move that could test the limits of EU treaty provisions and the scope of member state consent. The proposal concerns financial support for Ukraine and has exposed divisions within the bloc over decision-making procedures.
Hungary blocked the package despite earlier discussions in which it had agreed to an arrangement excluding it from bearing interest costs. Officials familiar with the matter say the Commission is assessing whether mechanisms under enhanced co-operation rules, or other treaty-based instruments, could allow the loan to proceed without unanimous backing. The analysis centres on whether prior consent to a structure that limited Hungary’s financial exposure constrains its ability to prevent implementation.
Commission president Ursula von der Leyen has indicated that the bloc will deliver the funding “one way or the other”, signalling willingness to deploy all available legal tools. The dispute emerged days before the anniversary of Russia’s full-scale invasion of Ukraine, heightening political sensitivity around the financing package. Several member states have criticised Budapest’s position as undermining collective commitments.
Under current treaty arrangements, certain financial decisions require unanimity, granting individual capitals effective veto power. The Commission’s exploration reflects concern that repeated obstruction could impair the EU’s capacity to respond to geopolitical crises. Legal services are therefore assessing whether alternative procedural routes exist that would withstand judicial scrutiny while preserving institutional credibility.
The episode underscores tension between national sovereignty and collective action within the EU framework. While the Commission has not formally outlined its preferred option, any attempt to proceed without Hungary’s consent would carry institutional implications extending beyond the immediate loan, potentially influencing how future financial instruments are structured and approved under EU law.
