The EU has drawn up a plan on how to punish Hungary, writes The Financial Times.
A plan has been drawn up in the EU to strike Hungary’s economy if the country blocks aid to Ukraine at this week’s summit. About the secret plan writes The Financial Times magazine.
In the documents seen by the newspaper, EU officials have outlined how to attack Hungary’s economic weaknesses. The purpose is, among other things, to destroy investors’ confidence and thus weaken Hungary’s currency, employment and growth. The plan would be implemented if Hungary continues to block support for Ukraine.
Autocratic prime minister of Hungary Viktor Orbán blocked the EU’s 50 billion euro support package for Ukraine in December. Other countries would have accepted the aid package, but approval of the package would have required unanimity.
If Orbán does not back down at this week’s summit, the EU is planning to stop funding Hungary. The EU did not comment on the leak to The Financial Times.
Will Hungary bend?
Without funding, the financial markets and international companies could lose their interest in investing in Hungary, the plan states. According to the documentary, Hungary’s public finances are very deficit, inflation is high and the currency is weak. The country’s debt service costs are also the highest in the EU.
Hungarian EU minister János Boka told The Financial Times that Hungary is not aware of the EU’s economic threat, but that the country is not going to give up.
According to Bóka, there is no connection between supporting Ukraine and EU funding received by Hungary.
However, Hungary has sent a compromise proposal to Brussels on Saturday, according to which it would now be ready to use funds from the EU budget to support Ukraine.