The European Union (EU) is threatening to sabotage the economy of Hungary if Prime Minister Viktor Orban continues to block military aid for Ukraine.
This threat was uncovered in a document drawn up by EU officials and seen by journalists from the Financial Times (FT), marking a significant escalation in the ongoing feud between the EU and Hungary, known as the bloc's most pro-Russian member.
Orban previously blocked the use of the EU budget to provide 50 billion euros ($54.22 billion) in financial aid to Ukraine. (Related: EU trying to bribe Hungary with 13 BILLION EUROS to prevent veto on more military aid to Ukraine.)
If Orban does not back down from his stance, the EU officials stated in the leaked document that the bloc's other leaders should publicly vow to permanently shut off all EU funding to Budapest.
"In the case of no agreement in the February 1 [summit], other heads of state and government would publicly declare that in the light of the unconstructive behavior of the Hungarian Prime Minister … they cannot imagine that EU funds would continue flowing from Brussels to Budapest," reads the document.
"This is Europe telling Viktor Orban 'enough is enough; it's time to get in line. You may have a pistol, but we have the bazooka,'" said Mujtaba Rahman, Europe director at the consulting firm the Eurasia Group.
Without the funding from the EU, "financial markets and European and international companies might be less interested to invest in Hungary," predicts the EU officials in the document. Such a move "could quickly trigger a further increase of the cost of funding of the public deficit and a drop in the currency."
The document was produced by an official in the Council of the European Union, the main executive body that represents the desires of the bloc's member states. The document lays out Hungary's economic vulnerabilities, including its "very high public deficit," its struggle to get to grips with very high inflation, a weakening forint and having the highest level of debt servicing payments as a proportion of gross domestic product in the EU.
Boka: Hungary does not give in to pressure
Janos Boka, Hungarian minister to the EU, told the FT that Budapest was not aware of the financial threat, but that 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," he said. "Hungary has and will continue to participate constructively in the negotiations."
But in a sign that Budapest was worried about the potential economic ramifications of the EU cutting it off from funding, Boka stated that Orban had sent a new proposal to Brussels on Saturday, Jan. 27, outlining how the country was now open to using the EU budget to fund the latest aid package to Ukraine.
"[Budapest] wants to explore the possibility of a more constructive and European solution," said Boka.
Budapest may even be willing to issue common bloc-wide debt to finance the aid, if Brussels was willing to compromise on certain other items, including one that gives Budapest an annual veto on future aid payments to Ukraine. An EU official who spoke with FT said there was "no way" Orban would ever be allowed a veto over funding.
"The political pressure on Hungary is continuous and strong but it does not influence how Budapest negotiates," said Boka. "We had to take a step, and we trust that the other party will be similarly flexible."
The EU has used financial threats against member states before, including against Hungary when it raised concerns over supposed rule of law issues. A similar situation occurred in Poland with the country's judiciary. The EU also used financial leverage on Greece during the country's eurozone crisis.
What makes this threat different is that it would be the first time Brussels undertook a strategy of explicitly seeking to undermine the economy of a member state.
The next step from here would be for the EU to trigger Article Seven of the Treaty of the European Union, which would allow Brussels to strip Budapest of its voting rights or bloc the allocation of even more EU funding to Hungary.
While several EU nations have considered the feasibility of triggering Article Seven, at least two nations – Slovakia and Italy – are expected to vote against this.
Learn more about the deteriorating situation in Ukraine and the decreasing likelihood of more sufficient aid from its Western allies at UkraineWitness.com.
Watch this Jan. 29 episode of "Alex in Cyprus" as Alex Christoforou comments on the EU's threats against Hungary's economy.
This video is from the channel Oldyoti's Home Page on Brighteon.com.
More related stories:
U.K. cash cow: PM Sunak announces $3.2 BILLION in military aid for Ukraine.
Hungarian security analyst: Russia-Ukraine war will not end in 2024.
The knives are out in Kyiv: Once Ukraine loses the war, its elites will eat each other alive.
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