The EU has prepared to cut off all funding to Hungary in a bid to damage “jobs and growth”, if Prime Minister Viktor Orbán continues to block support for the war in Ukraine. This is according to a report in the Financial Times, which cites a strategy document by EU officials.
The background is that in December Hungary vetoed an additional €50 billion in EU funds for Ukraine. Viktor Orbán has also promised to put the brakes on any future financial packages, something he reiterated at an emergency EU summit last week.
According to the report, the EU plans to deliberately target Hungary’s economic vulnerability, endangering the country’s currency and undermining investor confidence in Budapest.
“In the case of no agreement in the February 1 [summit], other heads of state and government would publicly declare that in the light of the unconstructive behavior of the Hungarian PM”, the Financial Times quoted the document as saying.
The report goes on to say that without the funds, “financial markets and European and international companies might be less interested to invest in Hungary. This could quickly trigger a further increase of the cost of funding of the public deficit and a drop in the currency”.
Breaking news: Hungary has vowed to defy EU pressure to approve a four-year, €50bn aid package to Ukraine and has condemned the bloc’s proposal to undermine its economy as ‘blackmail’ https://t.co/3M0uGYWcY1 pic.twitter.com/H3L9PWAHPK
— Financial Times (@FT) January 29, 2024
“Blackmail”
Three anonymous EU diplomats tell us that many countries support the plan. “The stakes are high. It is blackmail”, said one of the diplomats.
Hungary’s EU minister, Janos Boka, responded to the article by saying that “Hungary would not give in to pressure”.
– Hungary does not establish a connection between support for Ukraine and access to EU funds, and rejects other parties doing so. Hungary has and will continue to participate constructively in the negotiations.
Stressing the importance of preserving the unity of the EU, Boka emphasized that Hungary is ready to “make compromises” as long as its “vital interests” are not affected.
The EU Council of Ministers has so far declined to comment.
