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The European Union has a little thorn in its flesh which is proving to be a nightmare for European Unity. The Eastern European country of Hungary has for long been ruled by right-wing leader Victor Orban, who tends to disagree with the EU be it on matters of immigration or sanctions on Russia.
Ever since the Russia-Ukraine War started, Hungary has been critical of sanctions against Russia and has instead chosen to swim against the tide and strengthen ties with Moscow. In fact, in August, Hungary decided to give a go-ahead to the construction of two nuclear reactors which will be built by Russia’s Rosatom.
EU Frustrated by Hungary’s Pro-Russia Stance
Hungary’s EU peers, frustrated by Budapest’s pro-Russia stance, have been expressing their concerns about alleged corruption and “democratic backsliding" in Hungary.
On Thursday, the European Union lawmakers took a vote and declared that the country is “no longer a functioning democracy."
In fact, the EU executive has also recommended blocking European Union funds to the tune of $7.5 billion to Hungary. This comes at a time when most European economies including Hungary are struggling.
The $7.5 billion in question is almost 5% of Hungary’s estimated GDP this year. The reasons cited by the EU are democratic backsliding and possible mismanagement of the money.
“It’s about breaches of the rule of law compromising the use and management of EU funds," said EU budget commissioner Johannes Hahn. “We cannot conclude that the EU budget is sufficiently protected."
This financial sanction was introduced by the EU two years ago to rein in the likes of Poland and Hungary that differed with the 27-member bloc on matters of immigration, minority rights and so on.
But it seems, like Hungary, with its relatively close ties with Russia during a war, has finally invited the EU’s wrath and may be the first in the bloc to face such a scenario.
Hungary’s Bold Response
While losing the funds would come as a huge blow to the Orban government, Hungary is not backing down just yet.
To address the EU’s pressure over corruption allegations, Orban recently proposed creating a new anti-graft agency.
The country’s development minister, in charge of negotiations with the EU, said Hungary would meet all 17 of its commitments made to the European Commission.
He told a news conference, “Hungary did not make commitments to befuddle the Commission…We have made commitments that we know can be implemented… therefore, we will not be facing a loss of funds."
However, Hungary’s ties with Russia still run strong, and reports say that the country’s leadership plans to block any extension of EU sanctions against Moscow.
The Hungarian Prime Minister himself said these words in a closed meeting, if a Hungarian news website is to be believed.
Further, the dailynewshungary.com reports that according to Orbán, the Russia-Ukraine war could last until 2030, and Ukraine could lose a third to even a half of its territory.
The report went on to claim that Orban was sure the war would have been local, but said, “The West stepped in, making it global", and now we are shooting ourselves in the foot in Europe with sanctions.
Hungary to Leave the EU?
Orban is also reported to have floated the idea of leaving the EU altogether. By 2030 he believes, the Visegrad Countries— Hungary, Poland, Slovakia and the Czech Republic, will become net contributors, and at that moment Hungary should reflect on the meaning of the membership and whether there is a positive answer to it.
The leader won a fourth consecutive term in the April elections this year, and for the EU, he just seems to be getting bolder and bolder.
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