Sanctions Drain EUR 10 bln From Hungarian Economy, Orbán Says

Government

Image by Alexandros Michailidis / Shutterstock.com

Sanctions policy is draining EUR 10 billion from the Hungarian economy a year, Prime Minister Viktor Orbán said at the Hungarian Standing Conference, according to a report by state news wire MTI.

Orbán claimed the sanctions policy is costing the central budget some EUR 4 bln, money that could be used for social policy, wage rises, or tax cuts, while the economy has to "swallow" a EUR 6 bln loss.

"In this light, Hungary's anti-sanction policy does not appear to be excessive," he added.

Orbán said Hungary will not accept joint borrowing by European Union member states to assist Ukraine. He recommended member states decide how much they want to contribute to Ukraine's operation, then divide that up among themselves in a "proportional, fair" manner. 

Hungary could contribute an annual HUF 60 bln-70 bln from the central budget in the framework of a bilateral agreement with Ukraine, he added.

Hungary condemns Russia's aggression and is assisting the Ukrainian people, but it is not prepared to place the interests of Ukraine over its own, Orbán added.

The PM said Hungary is on the threshold of signing an agreement on its EU support for the 2021-2027 funding cycle, but "can't be sure what will be paid or what will be suspended". That funding comes to net HUF 800 bln a year, compared to Hungary's GDP of HUF 62 trillion, he added.

He said Hungary "must be given" its funding from the Recovery and Resilience Facility (RRF) as those resources are from joint EU credit on which member states earlier agreed how to distribute. That funding can be "delayed at most", he added.

Orbán said EU funding can't be used as a "tool for blackmail", adding that "we can't be backed into a corner".

Hungary could finance its program for the greening of its economy from global markets, getting credit from countries such as China, he explained.

ADVERTISEMENT

Greece, Bulgaria, Romania, Hungary Agree to Nat Gas Vertical... Energy Trade

Greece, Bulgaria, Romania, Hungary Agree to Nat Gas Vertical...

MPs Approve Tax Changes Parliament

MPs Approve Tax Changes

Home Loan Rates Climb Over 10% Residential

Home Loan Rates Climb Over 10%

Countries Exchange Experiences for Better Production of Catt... Conferences

Countries Exchange Experiences for Better Production of Catt...

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.