Lisbon, March 18, 2026 (Lusa) – Portugal's prime minister has warned that it would be "absolutely the wrong signal" if the EU failed to deliver on its loan commitment to Ukraine, currently blocked by Hungary. However, he expressed hope that "resistance will be overcome" during the European Council.
Speaking on Wednesday in the preparatory debate for the European summit, scheduled for Thursday and Friday in Brussels, Luís Montenegro highlighted the "historic decision" to grant a €90-billion loan to Ukraine, which was "consensually approved" by the 27 Member States in December. Budapest is currently vetoing the move due to the disruption of oil supplies via Ukraine.
At the heart of the dispute is the Druzhba pipeline, which was damaged in January by a Russian attack. Kyiv has yet to repair it, citing security concerns, while the Hungarian government, led by Viktor Orbán, who maintains close ties to Moscow, claims it is a deliberate, politically motivated action by Ukraine.
"My expectation is that the resistance can be overcome, and we can leave the Council with this point fully resolved," Montenegro commented, noting that the EU will promote a technical assessment of the pipeline. "From a political standpoint, it would be very delicate if the European Union did not fulfil this commitment, and absolutely the wrong signal regarding the support we have been giving to Ukraine and the safeguarding of our fundamental values," he said.
The finalisation of the loan, he stressed, "is absolutely fundamental from the perspective of the European Union's needs and also for the EU's credibility." Regarding the Middle East conflict triggered by attacks from the US and Israel on Iran since 28 February and Tehran's retaliation against several countries in the region, Montenegro stated that "Portugal has established direct contact with all attacked countries." This was done to assist Portuguese citizens through repatriation operations and to convey a readiness to contribute to a resolution.
"We are going to the European Council to help restore the diplomatic and negotiating path for this conflict as well, as we did regarding Ukraine and Gaza," he said.
Concerning the conflict's consequences, particularly in the energy sector, and noting that Portugal is "highly exposed to rising oil and gas prices," the prime minister stated that the government will advocate among other member states for the need to "preserve energy market stability" and reinforce the commitment to renewable energy and interconnection networks to make Europe less dependent on fossil fuels.
Montenegro revealed that Portugal has joined Spain, Denmark, Finland, and Sweden in sending a letter to the president of the European Council, António Costa, "so that this strategic sense is not lost on this occasion."
In the current "particularly challenging" context, reinforcing competitiveness gains even greater relevance, he said. "This Council could be a landmark if we set timetables and take decisions that are no longer delayed," he highlighted, stressing that "there can be no competitiveness in Europe if there is no cohesion."
Regarding another topic expected to be addressed at the European summit, the next long-term budget (Multiannual Financial Framework 2028-2034), Luís Montenegro acknowledged that it will be a "particularly demanding debate for Portugal."
The government "does not wish to waive priorities" such as safeguarding cohesion policies and the Common Agricultural Policy, protecting the specifics of outermost regions, and ensuring access conditions to "the greatest innovation of this financial framework: the competitiveness fund."
"Time is running out. There is no multiannual financial framework yet, but we know the design is no longer going to change. We want our envelope to be larger," he said. Both the public and private sectors must be prepared to submit projects under the competitiveness fund, which will be evaluated based on merit, Luís Montenegro warned.
JH / RYOL / AYLS
Lusa
