EU’s Strategy to Circumvent Hungary: Is Orbán’s Veto Power at Risk?
The European Commission is facing a challenge in its efforts to secure a loan for military purposes, as Hungarian Prime Minister Viktor Orbán is opposing the move. Orbán has stated that his government will not automatically support such loans, citing concerns about the Hungarian constitution and potential financial obligations.
The planned loan, which could be as high as EUR 150 billion, is seen as a way for the European Commission to access more favorable terms than individual member states could obtain on their own. Despite initial backing from EU leaders at a recent summit, the details of how the funds will be used are still being determined.
Orbán’s objections stem from a 2022 amendment to the Hungarian constitution, which requires a two-thirds majority in parliament for joint EU borrowing. He argues that an EU loan could impose financial commitments on Hungary that are not in line with the country’s laws.
In response to Orbán’s stance, President of the European Commission Ursula von der Leyen is pushing for a solution that would not require unanimous approval by Member States. Instead, a qualified majority voting procedure would be used, requiring support from 55% of Member States representing at least 65% of the total EU population.
Legal experts suggest that the EU loan would not necessarily be a financial burden on Hungary, unless the country directly borrowed or another Member State defaulted on its loan. However, Hungary’s history of conflicts with the EU on financial matters, such as failing to meet conditions for a previous loan, adds complexity to the current situation.
The standoff between Hungary and the EU underscores broader tensions between national sovereignty and common EU objectives. The outcome of this dispute could have lasting effects on EU decision-making in areas such as finance and defense. This conflict highlights the ongoing challenges the EU faces in navigating divergent national interests within the bloc.
