Espreso. Global

EU prepares plan against Hungary's economy in case of blocking aid to Ukraine — media

29 January, 2024 Monday
10:50

The EU has prepared a plan of action against Hungary if it does not agree to provide aid to Ukraine. The main goal is to damage Budapest's economy and lift the veto

client/title.list_title

The Financial Times reported the information, citing an internal EU document.

The EU has cautioned Hungary that if it doesn't withdraw its veto at the February 1 summit, other countries will publicly announce their refusal to offer financial aid to Hungary. This move is anticipated to diminish investor interest in Hungary, potentially resulting in a depreciation of the Hungarian forint. Consequently, this may lead to job cuts and a deceleration in economic growth.

According to the outlet, under pressure from the EU, Hungary has agreed to a compromise on aid to Ukraine.

"The European Union is concerned about the economic vulnerability of Hungary. The Hungarian economy is characterized by a high state deficit, high inflation, a weak currency, and a high level of debt servicing payments. Additionally, the Hungarian economy is heavily reliant on foreign financing, particularly from the EU," the report says.

Hungarian Minister for EU Affairs János Boca stated that the state is prepared to endorse the plan to assist Ukraine with EUR 50 billion but insists on retaining an annual veto.

The FT notes that other EU countries have rejected this proposal, fearing that Prime Minister Viktor Orban will use it to block payments each year and seek concessions. However, one diplomat told the outlet that Orban does not have the power to veto it.

Some EU members have considered invoking Article 7 of the Treaty on the European Union, which allows a member state to withhold voting rights or block funding. However, a number of countries have rejected this possibility because it requires unanimous support, and many countries do not want to impose such serious sanctions.

Boca said that if there is no compromise, Hungary would prefer the original proposal for a separate fund for Ukraine outside the EU budget.

What is known about Hungary's blocking of EU aid to Ukraine

On December 15, 2023, Viktor Orban vetoed the EU's decision on the EUR 50 billion budget assistance program for Ukraine.

On December 15, it was reported that the EU had found a way to circumvent Orban's blocking of EUR 50 billion in aid to Ukraine and set a date for an extraordinary summit.

On December 21, Orban came up with a new explanation for why he opposes Ukraine's accession to the EU. On the same day, he said he was ready to meet with Ukrainian President Volodymyr Zelenskyy.

On December 18, it became known that a special summit of the European Commission to discuss the allocation of EUR 50 billion for Ukraine for 4 years would take place on February 1, 2024.

On January 9, it was reported that Hungary might lift its veto on the EUR 50 billion EU aid package to Ukraine, provided that the funding is reviewed annually.

On January 10, despite Hungary's opposition, Brussels voted to start negotiations with the European Parliament on providing Ukraine with EUR 50 billion in macro-financial assistance for the next four years.

For his part, Orban assured that he was not against helping Ukraine in principle, but insisted that any funding for Ukraine should be separated from the EU budget and proportional to the economies of the member states.

After meeting with Viktor Orban in Budapest, Slovak Prime Minister Robert Fico said he supports his "legitimate" fight against changes to the EU budget to allocate EUR 50 billion to Ukraine.

On January 25, Bloomberg wrote that Hungary would not prevent the establishment of a EUR 5 billion EU military fund for Ukraine, which would allow it to initiate an agreement to modernize the mechanism of stable arms supplies to Kyiv.

Tags:
Read also:
  • News
2024, Tuesday
18 June
17:05
OPINION
Trojan horse for European Union  
16:33
China urges NATO to stop blaming it for war in Ukraine
16:10
Italy to supply Storm Shadow missiles to Ukraine - media
15:54
OPINION
Main Peace Summit conclusion: Europe's commitment to restore Ukraine's territorial integrity
15:39
Russian soldier who shot Ukrainian POW in Zaporizhzhia region to face trial in Ukraine
15:19
56 combat clashes occur at frontline, 6 ongoing in Pokrovsk direction - Ukraine's General Staff
14:30
Updated
Drone attack on two oil depots in Rostov region of Russia is SBU's special operation - media
14:02
Exclusive
Peace Summit communique offers Ukraine no legal options – expert Lozovyi
13:40
OPINION
Why Peace Summit, Minsk and Istanbul should not be compared
13:26
Exact number of Russian soldiers surrounded at aggregate plant in Vovchansk unknown – DeepState
12:50
Review
Russia is evolving, situation is tense: hostilities in Kharkiv region. Serhiy Zgurets’ column
12:25
Exclusive
Ukraine's defense forces systematically destroy Russia's air defense in Crimea - military expert Zgurets
12:05
Ukrainian woman sentenced to 12 years in Moscow for spreading war "fakes" – media
11:36
Putin grooms relatives and officials' children as potential regime successors - ISW
10:39
Putin praises North Korea for support ahead of rare visit to Pyongyang
10:21
Exclusive
Chasiv Yar under pressure, hostilities intensify in Kurakhove area: situation in Donetsk region
09:58
Lithuanian Seimas speaker arrives in Kyiv
09:40
Russia loses cruise missile, 16 tanks, and over 1,200 soldiers in one day of war in Ukraine
2024, Monday
17 June
21:37
Over 20 NATO allies to spend at least 2% of GDP on defense in 2024 - Stoltenberg
21:15
Review
Victorious news of 845th day of war: Magura drones have new capabilities, Ukrainian forces capture Russian 'turtle tank'
20:54
Updated
Russia attacks civilian infrastructure in Poltava region, injuring at least 16 people
20:39
Updated
Ukraine's General Staff reports 89 firefights at front
20:17
OPINION
Peace Summit in Switzerland: analysis and need for political manoeuvres
19:55
15 air defense systems, over 10 control points: Ukrainian military report on damage to Russian facilities in Crimea
19:35
Exclusive
New Ukrainian drone Stalker 5.0 to enhance military logistics in maritime areas
19:14
Ukrainian army captures Russian 'turtle tank' for first time
18:53
OPINION
Peace Summit as alternative to UN
18:31
Russian forces avoid staying in Mariupol overnight due to threat of attacks - partisans
18:22
Exclusive
Ukraine's Khortytsia troop grouping names hottest frontline areas
18:01
Putin's latest offer is extremely generous: foreign fakes for June 17
17:42
Exclusive
Stakes are rising: military expert on possible increase in nuclear danger
17:21
OPINION
China faces choice: backing Russia or deadly US sanctions
16:59
Ukraine exhibits stand of Russia-bombed stadium in Germany ahead of Euro 2024 opening
16:40
TikTok's algorithm favors Russia and China, study claims
15:59
Ukraine targets Russian military assets within 800 km for Magura UAV strikes – HUR
15:46
Russia shortens pause between missile strikes on Ukraine
15:17
Russia is trying to seize settlements in four directions affecting Ukrainian defense stability - Syryskyi
14:55
Exclusive
Ukraine issue could influence US presidential election - head of Ukraine’s Committee of Voters
14:30
Russian forces intensify in Kharkiv region, maintain pressure in Pokrovsk direction – General Staff
14:11
EU extends sanctions against Russia for another year over Crimea annexation
More news