The EU may sabotage the Hungarian economy if Budapest does not lift its veto on aid to the Ukrainian government at a summit in Brussels on 1 February. This was reported by the Financial Times newspaper with a reference to an EU document in its possession.
According to the Financial Times, European officials outlined a strategy in the document to target Hungary’s “economic weaknesses”, jeopardise its currency and cause a collapse in investor confidence in an attempt to damage “jobs and economic growth” if Budapest refuses to reconsider its stance on aid to Ukraine.
“In the absence of an agreement at the summit on 1 February, other heads of state and government will publicly state that in light of the Hungarian prime minister’s unconstructive behaviour, they cannot imagine that Budapest will receive EU funds,” the newspaper quoted the EU document as saying.
The paper notes that without EU money, European and international companies may be less interested in investing in Hungary. According to the newspaper, such a “punishment” could quickly provoke a further increase in the country’s budget deficit.
“The EU Council document … outlines Hungary’s economic vulnerabilities, including its very high public deficit, very high inflation, weak currency and highest debt payments as a proportion of GDP. It explains how jobs … are heavily reliant on foreign funding, which is based on high levels of EU funding,” the Financial Times wrote.
Three European diplomats told the newspaper on condition of anonymity that the plan was supported by many countries.
We shall remind you that in mid-December 2023, Hungary vetoed the EU’s decision on a long-term €50bn aid programme for Ukraine.