Brussels would apply ‘manual control’ over Ukraine, says Orbán cabinet
Should Ukraine join the European Union, Brussels would “control it manually”, the minister of EU affairs said on public radio on Thursday.
János Bóka said Ukraine would be an EU member “relying on money transfers from Brussels for day-to-day survival”. “Ukraine is currently in a state of selective bankruptcy … unable to obtain market loans, partially making its debt service payments and needing support to ensure daily operation of its state machinery,” the minister said. The country needs an estimated 50 billion euros in external financing a year “to meet at least some criteria of statehood”, Bóka said.
While the EU had made a political decision to ensure Ukraine’s accession by around 2030, he said, nobody considered whether the country met the accession criteria, and “if somebody asks those questions they will immediately be a target of appalling political attacks”.
“It is, therefore, important that Hungary receives political support from voters so that it can represent the national interest,” the minister said, referring to the government’s referendum on the subject.
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Fidesz has “Ukraine Psychosis”. This is all part of the same strategy that Fidesz has employed since 2010 when Republican consultants Arthur Finklestein and George Birnbaum helped Orban set up his political messaging campaign. They employed the strategy of polarizing the public around hyped up external or internal enemies. They started with their creation of the Soros bogeyman and the Gyurcsany bogeyman and progressed to the migrant bogeyman, the LGBTQ bogeyman, the EU bogeyman and now the Ukraine bogeyman. It’s always the same message that you need Orban in power to protect Hungary from these bogeymen that the opposition will allow to harm you and half the public follows this fraudulent messaging like sheep. Oh and the government will need to give itself indefinite power to act by decree and limit your rights to assembly and expression to protect you from these bogeyman. Your democracy is now gone.
Hungary is significantly dependent on European Union (EU) funding, which plays a crucial role in its economic development and public investment.
Extent of EU Funding in Hungary
EU funds have historically constituted a substantial portion of Hungary’s economy. During the 2014–2020 budget cycle, EU funds amounted to about 3% of Hungary’s GDP annually . These funds have been instrumental in financing nearly all of Hungary’s public development projects.
State Department
In the current 2021–2027 EU budget cycle, Hungary is allocated €22.5 billion under the EU cohesion policy, aimed at fostering growth and employment in structurally weak regions . Additionally, Hungary is eligible for €5.8 billion in grants and €9.6 billion in loans from the EU’s Recovery and Resilience Facility (RRF), designed to alleviate the economic fallout of the COVID-19 pandemic . Jacques Delors Centre
Impact of Funding Suspensions
However, Hungary’s access to these funds has been hindered due to concerns over rule-of-law violations. The European Commission has frozen a total of over €30 billion in EU funds over the past three years, citing serious rule-of-law deficits . This includes €6.3 billion in cohesion funds and €10.4 billion from the RRF . ip-quarterly.com, POLITICO, Eucrim, Jacques Delors Centre
The suspension of these funds has significant implications for Hungary’s economy. Without EU funds, Hungary’s economy would struggle to stay afloat, as these funds are vital for public investments and economic stability . The lack of funding has already led to a permanent loss of over €1 billion in EU funds due to unmet reform requirements . Jacques Delors Centre, GKI Gazdaságkutató Zrt., Financial Times, POLITICO
Economic Consequences
The withholding of EU funds has exacerbated Hungary’s economic challenges. The country is facing a budget deficit of over 4.5% of GDP and has entered a technical recession after two consecutive quarters of economic contraction . The suspension of funds has also led to increased borrowing costs and has constrained Hungary’s credit ratings . Financial Times
In response to the funding shortfall, the Hungarian government has sought alternative sources of investment, including strengthening ties with China. This includes cooperation in areas such as nuclear energy and the establishment of new Chinese car factories in Hungary . The Times
Conclusion
Hungary’s economy is heavily reliant on EU funding, which has been a cornerstone of its public investment and economic development. The suspension of significant EU funds due to rule-of-law concerns has placed considerable strain on Hungary’s economy, leading to budget deficits, economic contraction, and increased borrowing costs. While the government is exploring alternative investment sources, restoring access to EU funds remains critical for Hungary’s economic stability and growth. Financial Times, Reuters