EU Considers Suspending Funds to Hungary Over 'Opposition to Ukraine Support'... EU Denies

Hungary Continues to Exercise Veto Power
Some Call for Tough Measures Including Stripping Hungary of Voting Rights

The European Union (EU) is reportedly considering suspending the EU funds allocated to Hungary, which opposes the long-term support plan for Ukraine, according to major foreign media citing the Financial Times (FT) on the 29th (local time).

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Photo by Yonhap News

According to the FT, EU officials stated in a document prepared ahead of the special summit on the 1st of next month, "If no agreement is reached, the other member state leaders will publicly declare that 'it is unimaginable for EU funds to be provided to Hungary due to the unproductive actions of the Hungarian Prime Minister.'"

The document warned that "the cost of raising funds to cover Hungary's public sector deficit could increase, and the currency value could rapidly decline," adding that "(as a result) financial markets and European and multinational companies' investment interest in Hungary could decrease."

If Hungary continues to reject the Ukraine support plan at this special summit, it is interpreted that all EU fund payments allocated to Hungary will be completely suspended or reclaimed, thereby imposing disadvantages on Hungary's economy.

Hungary has been continuously exercising its veto by exploiting the loophole of unanimous decision-making. In response, there is a hardline stance among EU member states calling for the revocation of Hungary's core right to vote.

Hungary immediately pushed back. Orban Balazs, chief policy advisor to Hungarian Prime Minister Viktor Orban, stated on X (formerly Twitter) that on the 27th, Hungary conveyed to the EU that "if a 'separate precaution' is stipulated, the use of the EU budget for the Ukraine support plan as well as separate EU debt issuance could be possible."

He added, "Despite our already proposed compromise, the EU is intimidating Hungary."

The EU issued an official statement a day after the report, distancing itself by saying it was unrelated to summit preparation negotiations. A senior EU official sent a statement to the press corps, explaining, "The document mentioned in the FT article was a background explanation document independently prepared by the Council Secretariat, describing Hungary's current economic situation," and clarified, "The document does not mention any specific plans related to the multiannual financial framework (MFF) or Ukraine support funds."

Pro-Russian Hungary was the sole opponent at last month's EU 27-country summit to the long-term support plan for Ukraine amounting to a total of 50 billion euros (approximately 72.3 trillion won) for 2024?2027. The support plan, which involves spending from the EU joint budget, requires unanimous consent from all 27 countries to be approved.