Hungarian Prime Minister Viktor Orbán has issued a stark warning to the European Union, threatening to veto the bloc’s next long-term budget unless Hungary regains access to funds currently frozen due to rule-of-law and corruption concerns, Bloomberg reports.
Orbán’s threat targets the EU’s seven-year budget commencing in 2028, which requires unanimous approval from all 27 member states. He emphasized in an interview on state radio Friday that Hungary “will undoubtedly obtain” the withheld funds, asserting that failure to release them by 2027-2028 would result in the EU lacking a budget because of his veto.
The EU is currently withholding some €20 billion ($21.1 billion) in funds from Hungary, a significant economic vulnerability frequently highlighted by investors. This concern was underscored last week when Moody’s Ratings downgraded Hungary’s debt outlook to negative, citing the diminishing likelihood of the frozen funds being released.
Orbán attempted to minimize the short-term impact, claiming that €12.5 billion released by the European Commission last year, in exchange for judicial independence reforms, would suffice until 2026, an election year. Hungary’s Finance Ministry is expected to release its 2024 budget plan later today.
This move comes as Orbán’s Fidesz party trails in the polls behind a new opposition group that has pledged to unlock the frozen EU funds.
