FT: EU could cripple Hungary's economy if Orbán vetoes aid to Ukraine

Brussels, Belgium (Svidomi) — The EU would sabotage Hungary's economy if Budapest blocks fresh aid to Ukraine at a summit on February 1. This is stated in a confidential plan developed by Brussels. Journalists of the Financial Times have read the plan in detail. 

In the document, Brussels outlined a strategy to explicitly target Hungary's economic weakness, imperil its currency and drive a collapse in investor confidence if Budapest refuses to lift its veto on aid to Ukraine.

This could cause the Hungarian forint to fall and foreign companies to become less interested in investing in Hungary. This could lead to economic problems, as Hungary's economy is largely dependent on foreign funding, in particular from the European Union.

Hungarian Minister for EU Affairs János Bóka said that Budapest was not aware of the financial threat, but his country "does not give in to pressure".

"Hungary does not establish a connection between support for Ukraine and access to EU funds, and rejects other parties doing so. Hungary has and will continue to participate constructively in the negotiations," he said.

Brussels has used financial leverage on EU member states before, for example, in the case of Poland and Hungary over rule of law issues, or the case of Greece during the eurozone crisis. But a strategy aimed at undermining the economy of an EU member state would be a major new step for the bloc.

Three EU diplomats told the Financial Times that many countries have backed the plan.

"The mood has become tougher," one of them said. 

In December 2023, Hungary blocked a €50 billion macro-financial assistance package from the European Union for Ukraine.

This happened after the Council of the European Union agreed to start negotiations with Ukraine on EU accession.