Hungarian Prime Minister Péter Magyar and German Chancellor Friedrich Merz agreed to strengthen Hungarian–German relations during talks in Berlin on Tuesday, 10 November. However, the two leaders expressed differing views on linking the European Union’s next seven-year budget to financial support for Ukraine. While Merz insisted that continued assistance to Kyiv was essential for European security, Magyar warned against making the EU budget dependent on a separate political issue.
Péter Magyar and Friedrich Merz agree to strengthen Hungarian–German relations
Speaking at a joint press conference in Berlin, Péter Magyar said the foundations were in place for closer political and economic cooperation between Hungary and Germany.
According to Hungary’s state news agency MTI, Magyar highlighted the strong relationship between the two countries, noting that bilateral trade exceeds €65 billion and that German companies have made substantial investments in Hungary.
The Hungarian prime minister said both governments saw further opportunities for cooperation, ranging from major industrial projects to smaller investments.
Magyar also welcomed the revival of regular high-level bilateral meetings, pointing out that the two countries’ leaders had previously gone years without holding such talks.
He announced that Friedrich Merz was expected to visit Budapest in spring 2027. The two governments also plan to organise a joint Hungarian–German cultural season in 2028.
Merz insists EU budget must secure Ukraine funding
Despite the positive atmosphere surrounding bilateral relations, significant differences emerged over the European Union’s proposed 2028–2034 budget.
According to Anadolu Agency, Merz stressed that the next long-term EU budget must guarantee continued financial assistance for Ukraine.
The German chancellor argued that supporting Kyiv was a matter of collective European security and therefore a responsibility shared by all member states.
He also called for substantial revisions to the current budget proposals, warning that negotiations could not be concluded quickly without significant changes.
The disagreement comes amid growing concerns over Ukraine’s financial needs. Kyiv faces an estimated €70 billion funding shortfall in 2027, while the European Commission is examining options for providing approximately €45 billion in additional European assistance.
Germany has reportedly made its support for the next EU budget conditional on all member states agreeing to contribute fairly towards Ukraine’s financing needs.
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Magyar rejects linking EU budget negotiations to Ukraine
Péter Magyar took a different position, arguing that the EU’s seven-year budget should primarily serve the interests of European citizens, farmers, businesses and national economies.
He said Hungary would participate constructively in negotiations but would not compromise on its national interests.
The Hungarian prime minister stressed that agricultural and cohesion funding must not be significantly reduced. These funds are particularly important for Hungary, which has historically benefited from EU programmes designed to reduce economic disparities between member states.
Magyar also criticised the proposed financial arrangements, arguing that they could make Hungary one of the EU’s largest net contributors.
He further stated that Hungary could not accept being required to take out loans worth €1 billion or more, or provide guarantees for financing commitments of that magnitude.
However, Magyar did not reject European security cooperation. Instead, he argued that financial discussions should also recognise Hungary’s spending on protecting the EU’s external borders and its involvement in NATO and Western Balkan security missions.
The prime minister also referred to Hungary’s continuing negotiations with the European Commission over financial penalties related to its border and asylum policies, expressing hope that the dispute could be resolved before the end of 2026.
Germany offers energy cooperation to Hungary
Energy security was another important topic during the meeting between Péter Magyar and Friedrich Merz.
The Hungarian prime minister warned that high energy prices were undermining European competitiveness and placing increasing pressure on households and businesses.
Magyar welcomed Germany’s offer of cooperation in liquefied natural gas (LNG), emphasising Hungary’s interest in diversifying its energy supplies and securing oil and natural gas at competitive prices.
Germany also signalled its willingness to share expertise in LNG infrastructure and renewable energy as Hungary works to reduce its dependence on Russian energy supplies.
The leaders also discussed EU enlargement, particularly the accession prospects of Western Balkan countries.
Magyar reiterated Hungary’s support for Serbia and Montenegro joining the European Union, while stressing that Ukraine and Moldova should progress towards membership through a transparent, merit-based process.
Regarding Ukraine, he welcomed initial steps towards restoring the rights of the Hungarian minority living in the country, although he said further measures were necessary.
EU budget dispute could test Hungarian–German cooperation
The Berlin meeting demonstrated both the potential for closer Hungarian–German relations and the political challenges facing the two governments.
Economic cooperation, energy diversification and cultural ties offer opportunities for progress. However, their contrasting positions on financing Ukraine could become a significant obstacle during negotiations over the EU’s next long-term budget.
EU leaders are expected to discuss the funding disagreements at an informal summit in Dublin on Friday, 13 November.
For Hungary and Germany, the coming negotiations will test whether closer bilateral cooperation can coexist with fundamentally different approaches to sharing the financial burden of European security.
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