EU considers "nuclear option" as punishment for Hungary if it blocks funds for Ukraine

Leaders of the EU have expressed their willingness to deprive Hungary of its voting rights if Prime Minister Viktor Orbán blocks the approval of €50 billion in Ukraine-bound financial aid at the summit on 1 February.

As Politico notes, after many years of being soft on Budapest, European diplomats have hinted that the "nuclear option" – disenfranchising Hungary from the EU’s voting process – is no longer off the table if the nation jeopardises the security of Ukraine, a country now being considered for EU accession.

Five European officials and diplomats have stated that other member countries are ready to oppose Budapest, which would be a historic step for leaders who have traditionally relied on unity and consensus.

"If Orbán really blocks again an agreement [on the budget and the €50 billion for Ukraine] at the February summit, using Article 7 to strip Hungary of its voting rights could become a real option," said one EU diplomat.

Article 7 of the Treaty on European Union provides for the possibility of a member country having its voting rights suspended if it is determined that the country seriously violates the fundamental principles of the EU.

However, according to Politico, some Central and Eastern European countries are afraid to invoke Article 7, as they believe they may come under similar levels of rule-of-law scrutiny in the future.

The position of Slovak Prime Minister Robert Fico on this issue also remains uncertain, as does his continued loyalty to Orbán.

In December, Budapest vetoed a separate economic support package for Kyiv worth €50 billion, prompting EU leaders to reconvene on 1 February in Brussels with the goal of either reaching a compromise with Hungary or bypassing the Hungarian veto.

On 25 January, Bloomberg reported that Hungary will withdraw its objections to creating a military aid fund for Ukraine with an annual budget of €5 billion, paving the way for an agreement to modernise the mechanism ensuring a steady supply of weapons to Kyiv.

This decision signifies a shift from Hungary's position earlier this week when it opposed reforming the current EU mechanism that reimburses member states for weapons they send to Ukraine.