Hungary appears ready to lift its Ukraine EU veto, a move that could finally unlock formal membership negotiations for both Ukraine and Moldova. The potential shift, driven by Budapest’s new leadership, marks one of the most significant developments in the European Union’s enlargement debate in years and signals a dramatic reversal from Hungary’s previously hardline stance.

A Turning Point in Kyiv’s EU Bid

For the first time, Ukraine and Moldova are moving meaningfully closer to opening detailed EU membership talks. According to officials cited in a Politico report, the breakthrough comes as Hungary signals it is prepared to withdraw its long-standing veto on Kyiv’s accession bid.

The plan is for EU governments to open the first negotiating “cluster” at an intergovernmental conference in Luxembourg on June 15. This would represent the first formal step in the detailed discussions over the political, legal, and economic reforms a country must complete before it can join the bloc.

Crucially, the decision to lift the veto would advance both Ukraine and Moldova together, keeping the two accession tracks moving in parallel.

Cautious Optimism in Budapest

Despite the encouraging signals, officials are careful not to declare the matter settled. Speaking on condition of anonymity, one official stressed that negotiations remain ongoing and that no formal agreement has yet been reached.

Even so, the political momentum is clear. While no decision has been taken officially, Hungary’s new leadership has privately indicated openness to lifting the veto for both countries. That quiet shift carries enormous weight given Hungary’s history on the issue.

A Sharp Break From the Orban Era

The change in tone is striking when measured against the recent past. Under former Prime Minister Viktor Orban, Budapest was one of the fiercest opponents of Ukraine’s accession, repeatedly blocking progress and clashing with Brussels.

The prospect that Hungary may now lift its Ukraine EU veto reflects a broader transformation in the country’s political direction under its new government.

Resolving the Minority Rights Dispute

A key sticking point has long been the treatment of ethnic Hungarians living in Ukraine. Progress on that front appears to have been central to the recent thaw.

During a Monday meeting between Ukrainian and Hungarian experts on minority rights, the Ukrainian side offered assurances on how to address most of Budapest’s concerns. These concerns were laid out in an 11-point plan originally drawn up under Orban.

One diplomat acknowledged that not all of Hungary’s requests could be granted immediately. Importantly, however, no new Ukrainian legislation has been set as a precondition for opening the first cluster, removing a potential obstacle to the June 15 conference.

EU Ambassadors Rush to Finalize a Position

With the timeline tightening, EU ambassadors are now working to draft a common stance. That position is being built around Ukraine’s internal reform plans and its approach to protecting minority rights.

The path forward, however, still requires consensus. If all 27 member states agree, the Luxembourg conference will open the first cluster for both Ukraine and Moldova. Unanimity will remain necessary at every subsequent stage of the accession process, meaning the road ahead is far from automatic.

The Financial Backdrop

The diplomatic breakthrough did not occur in isolation. It coincides with a major financial development involving Hungary and the EU.

Earlier in the week, European Commission President Ursula von der Leyen confirmed that the EU would unlock €16.4 billion (about $19.1 billion) in previously frozen recovery and cohesion funds for Hungary, following policy reforms under its new government.

The financial package includes:

• €10 billion (around $11.6 billion) from the Next Generation EU recovery fund
• €4.2 billion (around $4.9 billion) in cohesion funds
• €2.2 billion (around $2.6 billion) tied to meeting academic freedom benchmarks

The EU had made the release of these funds conditional on tackling corruption that had grown under Orban’s government, which Brussels long criticized over rule-of-law backsliding and the misuse of EU money.

A Diplomatic Link

There appears to be a connection between these financial and political developments. According to a diplomat quoted in the same Politico report, talks on Ukraine’s membership gained momentum after Hungarian Prime Minister Peter Magyar traveled to Brussels to meet EU officials about unlocking the frozen funds.

That convergence suggests Hungary’s new leadership may be recalibrating its relationship with Brussels across multiple fronts at once, blending domestic reform, financial recovery, and a softer position on enlargement.

The Bigger Picture

The possibility that Hungary will lift its Ukraine EU veto represents a potential watershed moment for the bloc’s future. The key threads now shaping the situation include:

• A new Hungarian government signaling openness after years of obstruction
• Progress on the sensitive issue of Hungarian minority rights in Ukraine
• A coordinated push by EU ambassadors to finalize a common position before June 15
• The unfreezing of billions in EU funds for Hungary amid broader reforms

What Comes Next

All eyes now turn to the Luxembourg conference on June 15, where the EU could take its first concrete step toward bringing Ukraine and Moldova into the fold. Yet with unanimity required at every stage and Budapest insisting no final decision has been made, caution remains warranted.

Should Hungary follow through and lift its veto, it would not only accelerate Ukraine and Moldova’s European ambitions but also signal a meaningful realignment in Hungary’s place within the EU. For Kyiv, after years of frustration and war, even the opening of the first cluster would represent a powerful symbol that its European future remains within reach.