In the European capital, some stories tend to repeat themselves more than others. One of them — Hungary’s Viktor Orbán blocking common foreign policy decisions — has become something of a classic.
On Thursday, EU leaders gathered in Brussels for a summit that was meant to focus on the bloc’s competitiveness agenda. Instead, once again, Budapest — and a war, this time in the Middle East — overshadowed the official program.
The result? No progress on the 20th package of sanctions against the Kremlin, and no movement on the EU’s €90 billion loan intended to help Volodymyr Zelenskyy sustain Ukraine in its fight against Russia beyond May. That decision had already been agreed in December, making the current deadlock a major blow to the European Council’s credibility.
Just a few weeks ago, the plan was to focus on the single market, the EU’s long-term budget and overall competitiveness. Then came the destruction of the Druzhba pipeline, which had been supplying cheap Russian oil to Hungary and Slovakia. Orbán responded by vetoing the loan.
Since then, Ukraine has agreed to repair the pipeline. Brussels even deployed a technical mission to ensure the work moves forward. Neighboring Croatia also offered to share its oil supplies as a interim solution.
But to no avail. That's left European leaders increasingly exacerbated, with Council President António Costa calling the situation “blackmail."
The second issue casting a shadow over the summit was how to collectively respond to Donald Trump’s war in the Middle East — and the ballooning energy crisis triggered by the blockade of the Strait of Hormuz.
French President Emmanuel Macron said Paris is exploring ways to help free up the strait through action at the UN level. But as Peder Schaefer reported earlier this week, there is little appetite among EU capitals for any kind of military involvement.
Instead, divisions have emerged along more familiar lines.
On one side: countries pushing for an overhaul of the EU’s carbon pricing system to provide immediate relief, as energy prices have surged by more than 50%.
On the other: those warning that such a move would undermine long-term climate goals and damage industrial competitiveness.
Poland and Italy have led a group of ten countries arguing that the Emissions Trading System is “too steep and overly ambitious.” Meanwhile, Spain, the Netherlands, and even Ursula von der Leyen have pushed back, advocating for short-term national measures rather than derailing one of the EU’s flagship climate policies.
In the end, the ETS survived intact. Leaders agreed to ask the European Commission to review the system “by July 2026 at the latest,” with the aim of reducing carbon price volatility and limiting its impact on electricity prices, while preserving its core mission.
Attention now turns to two possible paths: fixing the pipeline to unlock the only viable plan to support Ukraine — or waiting for the Hungarian election on April 12, in hopes of a political shift.
But even that may not be enough.
As the summit wrapped up in the early hours of Friday morning, Slovakia’s prime minister, Robert Fico, signaled he is “ready to take over the baton from Hungary, if necessary.”
In other words, even if Budapest changes course, there’s no guarantee the funds will reach Ukraine in time.
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Soaring energy costs are fueling calls to suspend the EU’s flagship emissions trading system — a once anti-establishment stance now gaining mainstream traction.
Peder Schaefer: The EU’s 28th Regime moves closer to becoming law
Supporters say a pan-European legal framework would strengthen the single market, but critics warn it could weaken worker protections.
Iratxe García Pérez (Op-ed): What the EU must do to make housing genuinely affordable
The S&D president has called for more investment, a dedicated EU housing fund and stricter rules on short-term rentals and property speculation to address Europe's housing crisis.
What we're reading
Economist: Viktor Orban’s pro-natalist policies are not working
Despite lavish spending on mothers, Hungary’s fertility rate is falling again.
The Atlantic:The disappearing off-ramp in Iran
The options for ending the war keep getting fewer and worse.
Foreign Policy: Ukraine is making home-brew long-range missiles
Faced with a shortage of weapons to hit Russia, Ukrainians have developed their own.
Bloomberg: EU to offer US critical minerals partnership to check China
With both sides eager to diversify supplies, a deal could be inked within the next 30 days.
What we're following
The United States and its partners have ramped up efforts to regain access to the Strait of Hormuz, deploying low-altitude aircraft and Apache helicopters to hit Iranian ships, drones and missile batteries.
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