Brussels officials have allegedly crafted a clandestine strategy to undermine Hungary’s economy should Prime Minister Viktor Orban continue to obstruct a €50 billion aid package intended for Ukraine during this week’s summit. As per the Financial Times, the plan aims to weaken Hungary’s currency and diminish investor confidence, potentially jeopardizing jobs and growth within the country.
Orban, who has clashed with the EU throughout his 13 years in leadership and is known for his pro-Kremlin stance, blocked the aid package in December, prompting an emergency summit to be called for February 1 to address the issue. According to a document cited by the Financial Times, the lack of agreement at the summit would lead other EU leaders to publicly question the provision of EU funds to Hungary, considering Orban’s “unconstructive behaviour.”
The mounting frustration at Orban’s tactics has prompted discussions among member states about triggering Article 7 of the Treaty of the European Union, which could result in Hungary being stripped of voting rights. This comes as EU Council President Charles Michel canceled his resignation plans, fearing Orban might assume the chair at summits before a new leader is found.
However, some diplomats caution against using Article 7, considering it a last resort despite rising exasperation with Hungary. In the midst of a flurry of diplomatic visits and calls by EU leaders, Orban has proposed that the Ukraine aid be granted but only on an annual basis. This proposition is seen as unacceptable by senior EU sources, as it would effectively grant Hungary an annual veto and leave Ukraine in financial uncertainty each year until 2027, when the aid package is slated for review.
Hungary’s EU Minister János Bóka responded to the Financial Times, stating that Hungary “does not give in to pressure” and dismissed any connection between Ukraine aid and general EU fund access. He accused Brussels bureaucrats of using EU funds for political blackmailing.
Hungary’s economic reliance on the EU is significant, with nearly all of its exports heading to neighboring countries within the single market. Currently, €20 billion of Hungary’s EU funds are frozen due to concerns about LGBTQ+ rights and other issues related to the rule of law, which are core membership requirements. Despite this, Bóka maintains that Hungary has been and will remain constructive in negotiations.
