Two days after the European Union Commission, the executive arm of the Union, recommended freezing the transfer of aid in the amount of 7.5 billion euros to Hungary as a punitive measure for failure to comply with the implementation of reforms, the Prime Minister of Hungary, Viktor Orban, announced that his country would oppose the approval of an aid program of the Union in the amount of 18 billion euros to Ukraine. This is an aid program for 2023, designed to allow Ukraine to deal with the consequences of the war with Russia.
Orban, whose government also opposes the sanctions imposed by the European Union on Russia because of the war, admitted in his weekly radio interview that Ukraine does need financial aid to operate basic services for its citizens, but made it clear that Hungary opposes the financing of the European aid program through a joint loan from all EU members.
"The question is how to help," emphasized the Hungarian Prime Minister, "One proposal says that we should use the national budgets of the member states to take out new loans together and give this money to Ukraine.
We do not support this, since we do not want the European Union to become a community of indebted countries instead of a community of cooperating countries."
Orban suggests that each member state transfer financial aid to Ukraine from its national budget, separately and independently within the framework of bilateral agreements with Ukraine.
For its part, Hungary is ready to transfer an amount of approximately 150-175 million euros, an amount that Orban says "will not harm Hungary's national interests."
Orban's statement on the matter reinforces the impression that Hungary is holding back the aid program as a pressure measure to cancel the recommendation to freeze the funds it itself is supposed to receive from the European Union to finance various programs.
Opponent of a joint loan, Victor Orban, photo: AP
The recommendation to freeze the transfer of funds to Hungary was published on Wednesday after Hungary did not comply with a schedule set by the Commission for the implementation of a package of 17 reforms to "ensure the rule of law and democracy and prevent corruption" in Hungary, including reforms to ensure the independence of the judicial authority, complete transparency of the legislative authority and transparency of the use of funds which are transferred by the European Union. Hungary was required to pass these reforms by November 19, but avoided implementing the package of reforms in full. The decision on freezing the transfer of funds to Hungary is supposed to be made on December 19.
The third highest inflation in the European Union
Hungary urgently needs funds from the European Union due to the difficult economic situation in the country, which has actually lasted since the international economic crisis of 2008-9.
Due to the consequences of the war in Ukraine, Hungary today suffers from the third highest level of inflation in the European Union, over 20%, and the value of the national currency, the forint (Hungary is not a member of the Eurozone), is on a downward trajectory.
Orban blamed the European Union's sanctions policy against Russia for the price increases in his country.
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