🏛️ High Stakes in Brussels: Orban Decries EU’s "Repair Loan" for Ukraine as a Legal "Declaration of War"

As EU leaders gather for their final summit of 2025 (December 18–19), Hungarian Prime Minister Viktor Orban is warning of a historic turning point. At the center of the storm is a massive, unprecedented financial package known as the "Repair Loan" (Prêt de réparation).

The Proposed Mechanism: The European Commission, led by Ursula von der Leyen, is pushing for a loan estimated between €90 billion and €210 billion. Unlike previous aid packages, this would be guaranteed by the roughly €210 billion in frozen Russian central bank assets held in the EU (primarily at Euroclear in Belgium).

Key Points of Friction:

• Orban’s Stance: The Hungarian leader has labeled the seizure of interest or principal from these assets as a "declaration of war" and a violation of international law. He argues that this move will permanently damage the Euro’s credibility as a reserve currency.

• A Divided Bloc: While Germany and the Baltic states support the plan to offset declining U.S. military aid, Belgium, Italy, and Slovakia have expressed deep reservations about legal retaliation from Moscow.

• The "Trump Factor": The urgency in Brussels is driven by the latest U.S. National Security Strategy, which suggests Washington is pivoting its financial focus toward the Indo-Pacific, leaving Europe to settle the "reparation" bill for the Ukraine conflict.

According to Orban, if the EU bypasses the requirement for unanimity to pass this loan, it could signal a fundamental shift in how the Union operates, potentially leading to a long-term diplomatic rupture within the bloc.