PM Orbán’s billion-dollar wager on Trump: a seat at the top table, but at what cost amid Hungary’s debt spiral?

Orbán and Trump in the White House
Photo: FB/Orbán

Hungary’s embattled prime minister, is no stranger to bold gambles. But splashing out $1 billion on a Trump-created “peace board” for Gaza? That’s a wager even Las Vegas might balk at—especially as Budapest teeters on the brink of economic ruin.

Yesterday, Orbán gleefully brandished a letter from President Trump inviting him to join the freshly minted Gaza Board of Peace as a founding member. “Where there is Trump, there is peace,” the Hungarian leader proclaimed, accepting with alacrity. What he omitted, however, was the small print: membership demands a cool USD 1 billion upfront. Hungary’s coffers may be bare, but Orbán appears only too happy to oblige.

Viktor Orbán Miskolc rally
At a campaign rally in Miskolc last weekend, Viktor Orbán boldly proclaimed his vision of transforming Hungary from a serial borrower into a proud lender. Yet, amid the cheers, he conspicuously sidestepped the thorny question of how he plans to repay the nation’s ballooning debt—especially with lavish pre-election handouts now flowing to voters ahead of the general poll. Photo: FB/Orbán

A historic borrowing binge looms for 2026

Hungary’s economy has languished in recession since 2023, forcing the government to turn to foreign lenders. Beijing obliged in April 2024 with a EUR 1 billion loan, repayable by 2027. Now, according to the Government Debt Management Agency (ÁKK Ltd)’s 2026 blueprint, Budapest plans to raise a staggering EUR 9.6 billion via bonds and loans this year alone.

Of that, EUR 3.1 billion will service expiring foreign debts, with the remaining €6.5 billion plugging the state’s yawning budget deficit, as Népszava reported in December. Last year, the ÁKK already issued EUR 7 billion in foreign-currency bonds.

Trump’s global peace crusade with Orbán

The Gaza Board’s grand title belies its ambitions: Trump envisions deploying it worldwide once the Middle East is “settled”. Yet even government-friendly index.hu admits a glaring oversight—America neglected to loop in Israel. Cue the Israeli foreign minister raising merry hell with US Secretary of State Marco Rubio.

orban-trump-meeting
On his flight home from Washington, Orbán boasted of securing Trump’s blessing (hadshake) for a US ‘financial shield’ to safeguard Hungary. Yet in a swift rebuke, the President denied granting the Hungarian prime minister that. Photo: Facebook/Orbán Viktor

Orbán wasted no time: Trump invited over 60 world leaders, including Ursula von der Leyen—the European Council president Orbán loves to lambast as “pro-war” over Ukraine. With Trump as chairman, Hungary’s prompt acceptance signals the USD 1 billion transfer could be imminent.

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