EU officials arrive in Budapest to discuss Ukraine loan veto with Hungary’s new government

European Union officials have arrived in Budapest for high-stakes talks with Hungary’s incoming government, just hours after outgoing Prime Minister Viktor Orbán admitted his political era has ended and took full responsibility for his party’s devastating election loss.

Orbán, who has led Hungary for 16 years, told the pro-government outlet Patrióta that the Tisza party’s landslide victory was an “emotional rollercoaster” and conceded he had no one to blame but himself for Fidesz’s defeat. “Well, as I am the president of the party … I must take 100% of this responsibility upon myself,” he said, adding that the party would vote on new leadership in June. His remarks came hours before EU delegates arrived in the capital, marking what both sides spot as a critical reset after years of strained relations.

The talks come at a pivotal moment. Magyar’s Tisza party secured a supermajority in the April 12 election, giving it the power to amend the constitution and potentially dismantle key pillars of Orbán’s illiberal democracy agenda, including his efforts to reshape election laws, place loyalists in control of an estimated 80% of Hungary’s media, and retool the judiciary. Magyar has already signaled a break with the past, pledging to relocate the prime minister’s office from Budapest’s Carmelite Palace.

For the EU, the visit offers a chance to turn the page on Orbán’s tempestuous tenure and persuade Hungary to lift its veto on a €90 billion (£78 billion) loan to Ukraine. EU leaders have been urgently pushing for this change in the weeks leading up to the election, though Magyar has stated he does not consider the veto relevant, noting Hungary was one of three countries that opted out of the loan last December. It remains unclear how the veto will be lifted or whether Orbán will be involved in the process.

Meanwhile, Magyar is scrambling to unlock about €17 billion in frozen EU funds — nearly €10 billion of which will expire at the end of August — that were withheld during Orbán’s rule over concerns of corruption and democratic backsliding. The funds require Hungary to implement conditions such as checks on corruption, the right to asylum, and academic freedom. EU Commission spokesperson Paula Pinho warned that “the clock is ticking for a number of topics,” stressing the necessitate to act quickly before Magyar takes office in early May to avoid wasting time.

Orbán has remained largely silent since the election, aside from a Facebook post declaring, “The operate begins. Let’s reorganise ourselves and preserve fighting for the Hungarian people!” In a somber interview with POLITICO, he described feeling “pain and emptiness” after the loss, admitting he had believed Fidesz would win. He acknowledged the opponent’s message was stronger, calling it a call for change centered on rooting out corruption and dismantling his political machine. Yet he insisted he was not going anywhere, declaring his defeat requires a “complete renewal” of Fidesz and the broader Hungarian right, including a full overhaul of the party’s leadership and representation in parliament. A party assembly is set for April 28.

An ironic twist emerged as Orbán is expected to remain in place as caretaker prime minister when EU leaders meet for an informal summit in Cyprus on April 23–24, although there is no indication he plans to attend. According to an EU official who spoke to POLITICO, Orbán will skip the meeting, underscoring how quickly his long tenure is drawing to a close.

Even as he steps back, Orbán’s influence lingers. U.S. President Donald Trump praised Magyar as a “good man,” noting he had actively campaigned for Orbán in the past. Trump told ABC News he believed the new leader would do a good job, having previously urged Hungarians to vote for his friend and close ally.

Key Detail Nearly €10 billion of the frozen EU funds Hungary seeks to unlock will expire at the end of August, creating urgency for reform compliance.

How the frozen EU funds create urgency for Hungary’s new government

Magyar faces a tight deadline to unlock approximately €17 billion in EU funds, with nearly €10 billion set to lapse by the end of August if Hungary fails to meet conditions on corruption checks, asylum rights, and academic freedom. The expiration date adds pressure to the pre-inaugural talks with EU officials, who insist progress must be made quickly to avoid losing the funds entirely.

How the frozen EU funds create urgency for Hungary’s new government
Hungary Magyar Fidesz

What Orbán’s acknowledgment of responsibility reveals about Fidesz’s future

By accepting full blame for the election loss and calling for a “complete renewal” of Fidesz, Orbán has signaled a potential shift in the party’s direction, though his continued influence as party president and suggestion he would follow the membership’s lead — whether to “sit in the back row” or “take the team onto the field” — leaves open whether he will step aside or seek to shape the renewal from within.

Why the EU sees this moment as a chance to reset relations with Hungary

After years of conflict over rule of law, media control, and judicial independence, the EU views Magyar’s incoming supermajority government as an opportunity to resolve long-standing disputes, including Hungary’s veto on Ukraine aid and the release of frozen funds, by engaging with the new leadership before it takes office to build trust and avoid delays.

President of Ukraine Arrives for the Crucial EU Summit in Budapest

What specific conditions must Hungary meet to unlock the frozen EU funds?

Hungary must implement checks on corruption, ensure the right to asylum, and protect academic freedom to access the approximately €17 billion in EU funds that were withheld during Viktor Orbán’s rule.

Is Viktor Orbán expected to attend the EU informal summit in Cyprus on April 23–24?

No, according to an EU official who spoke to POLITICO, Orbán will skip the meeting, although he is expected to remain in place as caretaker prime minister at that time.

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