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Significance
EU finance ministers in response postponed decisions on paying Hungary EUR5.8bn under the post-COVID-19 recovery plan, and whether to freeze EUR7.5bn from the ‘cohesion’ funds due Hungary from the 2021-27 EU budget. Due to EU concerns about Hungary’s democratic backsliding, Budapest may lose funds just when it is in its tightest-ever fiscal position.
Impacts
Orban will turn towards Russia and China, creating increased security risk for the EU.
Western discussion of ‘what to do about Hungary’ will amplify.
The EU may have to consider for the first time how to expel a member state.
Keywords:
Hungary,
EU,
EUR,
Germany,
IMF-World Bank,
Russia,
economy,
international relations,
politics,
social,
aid,
debt,
fiscal,
party,
sanctions,
constitution,
consumer,
education,
foreign investment,
health,
immigration,
population,
protest,
reform
© Oxford Analytica 2022. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2022
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