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Orban threatens to block the EU budget


December, 06 2024
watermark Economic news

Hungarian Prime Minister Viktor Orban has announced his intention to veto the EU's long-term budget if the country does not restore access to frozen funds (20 billion euros) related to problems of law and order and corruption. This seven-year budget, starting in 2028, requires the unanimous approval of all 27 participating countries. 


Orban stressed that Hungary will certainly receive the necessary funds. He also noted that the money that did not arrive in 2025 and 2026 should be compensated in 2027 and 2028, otherwise he will not support the EU budget.


Analysts warn that the amount withheld by the EU from Hungary represents a significant vulnerability for the country's economy. Last week, Moody's rating agency changed the outlook for Hungary's debt obligations from stable to negative, indicating a decrease in the likelihood of funds being unblocked.


Orban is trying to reduce the significance of this situation, arguing that the 12.5 billion euros allocated a year ago in exchange for legislative changes will meet the needs of the economy before the elections in 2026.


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Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.