EU draws up plan to derail Hungary's economy – FT

The EU is developing a plan to sabotage Hungary's economy unless Budapest agrees to negotiate a new aid package for Ukraine.

The Financial Times reported that Brussels intends to collapse the Hungarian forint [currently HUF 1 = US$0,0028] and reduce Hungary's investment attractiveness in order to harm "jobs and growth" in the country's economy.

The article noted that unless Hungarian Prime Minister Viktor Orbán makes concessions, the EU leadership may publicly announce a complete cessation of funding for Budapest with the intention of "spooking the markets".

János Bóka, Hungary's EU Affairs Minister, said he had not heard of the threats. He added that Budapest "does not give in to pressure: "Hungary does not establish a connection between support for Ukraine and access to EU funds, and rejects other parties doing so," he said. "Hungary has and will continue to participate constructively in the negotiations".

The official noted that Hungary sent a new proposal to Brussels on 27 January, giving its provisional consent to use funds from the EU budget to help Ukraine and issue common debt to cover Kyiv's needs provided that the EU meets Budapest's demands and adds a clause stipulating that it can change its decision in the future.

For his part, an EU Council representative said he would not comment on the leak to the press. At the same time, sources in EU diplomatic circles interviewed by the FT stressed that "many countries" support the plan. One of the diplomats told the FT that such discussions were "blackmail."

Hungary has previously indicated that it may lift its veto on the €50 billion aid package, provided that the funding is reviewed annually. Media reports suggested that the European Commission is ready to accept some of Budapest's demands.

The EU leaders are reportedly ready to take a tough stance against Hungary if Prime Minister Viktor Orbán continues to block the €50 billion aid package for Ukraine at the 1 February summit.