Due to the conflict between the Orbán government and the EU, Hungary lost €1 billion
From January 1, 2025, Hungary will lose access to more than 1 billion euros in funding from the European Union. About this informs Financial Times.
These losses coincided with a period of severe economic hardship for the country, when the government has little room for maneuver. The budget deficit exceeded 4.5% of GDP in 2024, and the economy shrank by 0.7% in the third quarter, entering a technical recession.
Of the 6.3 billion euros frozen by Brussels due to violations of the principles of the rule of law, Hungary will ultimately lose 1.04 billion. These funds had to be used by the end of 2024, otherwise they become unavailable.
In addition, the country loses 1 million euros of funding every day due to violations of the rules on the treatment of asylum seekers, which will lead to a total loss of 200 million euros by the end of the year. In addition, the European Court imposed a fine of 200 million euros on Hungary for non-compliance with the asylum rules.
In response, EU Affairs Minister János Bóka said that Hungary views the denial of funding as political pressure, and the government plans to take measures to correct what he says is a “discriminatory situation.” At the same time, the government is trying to compensate for the loss of European funds by attracting investments from Asia, especially from China. However, experts doubt that these efforts can fully replace EU support.
