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EU denies sanction plan to undermine Hungary's economy

Flags of Ukraine and the EU
Flags of Ukraine and the EU

The European Council has refuted reports of devising a plan to undermine Hungary's economy if Budapest blocks financial aid to Ukraine for EUR 50 billion ($54.3 billion), said a senior European official, Ukrainian news agency Ukrinform reported on Jan. 29.

A special EU summit in Brussels on Feb. 1 will again consider the allocation of financial assistance to Ukraine for the period 2024-2027 for EUR 50 billion ($54.3 billion).

Hungarian Prime Minister Viktor Orbán previously vetoed a new EUR 50 billion ($54.3 billion) aid package for Ukraine, insisting that Budapest receive EUR 21 billion ($22.8 billion) in aid and grants that have been frozen due to the poor situation with human rights and rule of law in the country.

Hungarian Prime Minister’s Political Director Balázs Orbán, called the information blackmail that "has nothing to do with the rule of law," on Jan. 29.

Read also: EU to impose sanctions on Hungary if it fails to support aid to Ukraine

Among other things, such a move could undermine investor confidence in Hungary, potentially triggering economic consequences like job cuts and slowing growth, The FT said.

The Financial Times newspaper published an article on Jan. 28 claiming that the European Union has devised a plan for economic sanctions against Hungary as a means of pressuring the country to lift its veto on aid to Ukraine.

Ongoing negotiations are guided by the principles of dialogue, consultation, and compromise for the benefit of all parties involved, he said.

The document mentioned in the Financial Times article, which discussed possible sanctions against Hungary, is a reference note on the current state of the Hungarian economy, the official said. It does not outline any specific plan for Hungary or Ukraine.

Read also: EU has 3 strategies to circumvent Hungary’s obstructionist veto on $54.3 billion in aid for Ukraine

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Read the original article on The New Voice of Ukraine