FT: The EU develops a plan to undermine Hungary's economy
Publication date

FT: The EU develops a plan to undermine Hungary's economy


The European Union has prepared a plan for economic sanctions against Hungary if Budapest refuses to agree to allocate a new aid package to Ukraine.

The European Union prepares the economic sanction plan against Hungary

If the Prime Minister of Hungary, Viktor Orbán, does not make concessions, the EU leadership may publicly announce the complete termination of funding to Budapest.

According to the publication, Brussels will collapse the exchange rate of local currency and reduce the country's investment attractiveness to "harm jobs and economic growth."

A representative of the Council of the EU, to whom the publication turned for comment, said that he would not comment on the leak in the press.

At the same time, interviewed sources in EU diplomatic circles emphasised that many countries support this plan, the publication writes.

In a comment for the FT, one of the diplomats called such discussions "blackmail".

The head of the Hungarian Ministry of EU Affairs, János Bóka, said that he had not heard anything about these threats.

Hungary does not make a connection between support for Ukraine and access to EU funds and is opposed to other countries making such a connection. Hungary will continue to constructively participate in the negotiations, he said.

The official noted that Hungary sent a new proposal to Brussels on January 27, giving preliminary consent to the use of funds from the EU budget to provide aid to Ukraine and the issuance of community debt obligations to cover Kyiv's needs if the EU meets Budapest and adds a clause on the possibility of changing its decision in future.

Hungary complicates negotiations on EU aid for Ukraine

According to the publication, the European Union's talks on providing financial assistance to Ukraine for 50 billion euros are becoming more complete, as Hungary has not yet consented.

Hungarian Prime Minister Viktor Orbán blocked the revision of the EU budget, which includes aid to Ukraine, at a summit in December.

However, EU leaders will try again to agree on the aid package at next Thursday's summit.

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