Jobbik: Recession possible if EU funding reduced or cut off

Opposition Jobbik says the Orbán government has failed to change Hungary’s economic dependence on European Union funding and if the financing is cut off due to an Article 7 procedure or otherwise reduced, then the country would fall into recession.

János Volner, the party’s deputy leader, noted on Wednesday that the European Parliament had recently decided to put Hungary on track towards the procedure that would strip it of its EU voting rights due to perceived infractions of democracy and the rule of law under the government of Viktor Orbán. The move would also suspend EU subsidies.

Volner said that in the next EU financial framework, Hungary is likely to receive 23-24 percent less funding. In this case, there would also be a recession, he insisted.

He slammed the government for failing to boost the performance of Hungarian industry up to the level of multinationals located here.

The Jobbik politician noted that

remittances from hundreds of thousands of Hungarians working abroad make up more than 1,000 billion forints (EUR 3.1 billion) each year.

These provide an important pillar of the economy, he said.

The fate of EU subsidies, multinationals and remittances will determine whether or not there will be a major economic downturn in Hungary, he said.

Volner insisted that the government had handed two-thirds of EU economic development funds to multinationals.

The rest it channelled to oligarchs close to the ruling Fidesz party, he said.

It is not in Hungary’s interests that the government acts; its main political goal is to acquire Hungary’s assets, he added.

As we wrote yesterday, under the European Commission’s current plans, Hungary will receive a 24 percent cut in funding in the 2021-2027 financial framework, but in the negotiation rounds ahead, the extent of the reduction could change significantly, read more HERE.

Source: MTI