Brussels’ final warning to PM Orbán: Hungarian economy at risk if he vetoes
The European Union is contemplating sanctions against Hungary, potentially impacting the nation’s economy. Prime Minister Orbán faces a crucial decision on the 1st of February, necessitating careful planning to avert endangering the country’s economic well-being.
An extraordinary summit on the 1st of February, featuring EU Leaders, is poised to address the next financial aid package for Ukraine, an event of undeniable importance for both Ukraine and Hungary. This summit assumes significance due to the EU’s reported intention, as per the Financial Times, to address Prime Minister Viktor Orbán’s previous veto of the financial aid package in December. The EU plans to extend 50 billion euros to Ukraine through joint borrowing by member states, a move contested by Orbán, who vowed to veto the package regardless of conditions. Recent alterations in the EU’s financial structure grant the European Council a voice in the Recovery and Resilience Facility (RFF), a departure from the exclusive management by the European Commission.
The reason behind the EU’s plan to use joint borrowing for the 50 billion euros is the cost-effectiveness and potential political risk reduction, avoiding the need for approval from each nation’s parliament if states were to borrow individually.
The risk of the aid not materialising poses a significant threat to Ukraine, relying on foreign financial aid since the Russian attack. The vetoing of this package could lead to further deterioration of the Hungarian-Ukrainian relations and may distance Hungary from other member countries. There are already talks about additional sanctions if the Prime Minister decides to veto the financial bill. This time, it may not directly affect the economy, but it could harm the nation just as much as the previous one.
Although this is currently just a plan and no actions have been taken, the news has already prompted a drop in the value of the already weak forint and a decrease in the price of OTP stocks.
This could also interest you:
- Read more about another sanction which Hungary might face in the EU HERE
- Read about Hungarian forint the weakest this year HERE
Reactions from the Orbán government
The Hungarian government “will not give in to blackmail”, the minister of European affairs said on Facebook on Monday, in reaction to press reports suggesting that EU members could try and withhold community funding from Hungary “unless the EU summit on February 1 passes a decision on aid to Ukraine”.
János Bóka said the reports “support the Hungarian government’s assertion that Brussels uses access to funding for exerting political pressure”.
“Hungary does not link aid to Ukraine with its accessing EU funds and rejects others’ doing so. Hungary has been a constructive participant in negotiations and will not give in to blackmail,”
the minister said.
“Brussels uses blackmail against Hungary as if there were no tomorrow”
– Prime Minister Orbán’s political director Balázs Orbán wrote on X (formerly Twitter) on Monday in response to a Financial Times article last weekend.
UPDATE
EU commissioner: If situation in Hungary worsens, EC could block funds again
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10 Comments
Hungary needs to stop being an enemy of the EU or it should leave. Orban is destroying the country with his actions.
HUXIT!
And yet the Hungarian government expects the EU to give in to blackmail, give Hungary money without any strings attached, and they will vote for the aid package. With no strings attached, Hungary will continue on its path of corruption. Just look at the “mistake” in our national debt that now shows how many billions of euros have disappeared here under the current government.
That PLANK he walks, not just through his bodily weight, but the MASSIVE growing weight he carries – luggage on his shoulders, that PLANK, barely just holding, bowing muchly, that it sooner than later, will succumb to his LUGGAGE.
The name of the Hungarian Prime Minister – Victor Orban, continues to be rightfully “mauled” that will eventuate to him, being “eroded” from European Politics – the European Union, of Hungary and the Global World that practice are Governed as a DEMOCRACY.
1.
OpIndia
https://www.opindia.com/2023/04/volodymyr-zelensky-embezzled-400…
Volodymyr Zelensky embezzled $400 million from US aid by
WebApr 14, 2023 · 4748. According to Pulitzer Prize-winning journalist Seymour Hersh, Ukrainian President Volodymyr Zelensky embezzled $400 million last year that the US had allotted Ukraine for the purchase of fuel. Hersh claimed that Zelensky has made millions by buying cheaper Russian fuel instead of purchasing from approved sources.
1.
OpIndia
https://www.opindia.com/2023/04/volodymyr-zelensky-embezzled-400…
Volodymyr Zelensky embezzled $400 million from US aid by
WebApr 14, 2023 · 4748. According to Pulitzer Prize-winning journalist Seymour Hersh, Ukrainian President Volodymyr Zelensky embezzled $400 million last year that the US had allotted Ukraine for the purchase of fuel. Hersh claimed that Zelensky has made millions by buying cheaper Russian fuel instead of purchasing from approved sources.
New York Times
https://www.nytimes.com/2024/01/28/world/eur…
Ukraine Accuses Defense Company of Embezzling $40 …
Web1 day ago · Ukraine’s intelligence agency said it had exposed a defense company’s $40 million embezzlement scheme, money that had been intended to procure mortar rounds, as the government sought to…
CNN
https://www.cnn.com/2024/01/28/europe/ukraine-weapons-procurement…
Ukraine says it uncovered $40 million corruption scheme in … – CNN
Web1 day ago · CNN —. Ukraine’s Security Service (SBU) said it has discovered a mass corruption scheme in the purchase of weapons by the country’s military amounting to nearly $40 million (1.5 billion …
The EUP is supporting Ukrainian corruption. Brussels has a responsibility to oversee prudent spending of its taxes. Brussels is complicit
in the Ukrainians corruption, it is time to check if kick-backs are paid to EUP members and Ursulya Von der Leyen.
Oh, shut up, you pathetic bullies. Punishing your own member because it’s opposed to throwing OUR OWN MONEY to the bottomless pit that is Ukraine. Most of this is Hungary’s money anyway, which it paid into the E.U. The E.U., like the Soviet Union, is an aggressive, hegemonic, corrupt bully. I just thank the good Lord they don’t have an Army or it’d be 1956 all over again. The sooner that thing goes to the dustbin of history the better.
Ukraine has been tackling corruption. The NYT article is based on the Ukrainian government’s own investigation. The rest of Marta Burka’s post is based on highly questionable sources and if you look on-line Russian based Tass is one. What people should be asking is what kind of corruption is going on inside Hungary with Fidesz and its’ connected oligarchs. As far as Ukraine is concerned it is fighting an existential battle for its’ existence against Russia and it deserves all the help it can get. Fidesz fights a battle to line its’ own pockets and promotes Russian interests. It is selling out Hungary to Vladimir Putin.
Hungary needs to make inquiries to BRICS…
Dear Larry, how is Ukraine tackling corruption? Arresting a few minions does not solve the problem. The 480 million embezzled was never recovered.
Please remember everyone. No rules were broken by Hungary on the issue of aid to Ukraine. The use of the Veto is clearly in EU rules.
And another thing. Ukraine has lost the war with Russia.
The EU is not your friend!