EU may refuse Hungary financial assistance for supporting Russia
2022.12.09 10:23
EU may refuse Hungary financial assistance for supporting Russia
Budrigannews.com – On Friday, the executive of the European Union is expected to provide a new assessment of the state of Hungary’s democracy in order to assist the other 26 member states of the bloc in deciding whether to provide Budapest with billions of euros in funding.
One of the greatest obstacles Hungary’s nationalist Prime Minister Viktor Orban has faced in his 12-year rule is trying to gain access to the money. Domestic inflation is expected to rise to 26% this month, the cost of state debt has risen, and the economy is expected to slow significantly next year.
13.3 billion euros, or $14.1 billion, had been designated for Hungary from the EU’s joint funds, but it was halted due to concerns about corruption and a lack of judicial independence in the nation of about 10 million people.
According to two officials, the European Commission will send a letter to the Czech Republic, which is currently in charge of the rotating chairmanship of the EU, later on Friday.
Since coming to power in 2010, Orban has been engaged in numerous bitter disputes with the EU regarding LGBT rights and restrictions on the media.
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He has cultivated close ties with Moscow and repeatedly stalled EU sanctions against Russia regarding the war in Ukraine because Hungary is heavily dependent on Russian oil and gas.
SEARCHING FOR A CONTRACT Despite the fact that the value of the forint in Hungary’s currency compared to the euro has decreased by 11% this year, Orban has sought to negotiate a settlement with the Commission in order to obtain funds that he believes are essential to the health of his economy.
Due to the potential for corruption, the Commission had previously recommended freezing 7.5 billion euros, or 65 percent, of the “cohesion funds” allocated to Hungary from the EU budget until the end of 2027.
However, the other EU members, caught in a tug-of-war with Hungary, which also sabotaged a loan of 18 billion euros to Ukraine and a proposal for a global minimum corporate tax, refused to support it and urged the EU executive to reconsider.
Additionally, the Commission has been refusing to approve the 5.8 billion euros that are intended for Hungary from an EU fund that was established to assist member states in recovering from the COVID pandemic.
With a deadline at the end of the year to decide on both pots of money, both sides are under more pressure to make concessions to one another. $1 = 0.9463 euros)
