The EU has created a plan to undermine Hungary’s economy if it refuses to support aid to Ukraine, the Financial Times (FT) reported

Since early 2022, the EU has heavily sanctioned Russia and given Ukraine ~$92B worth of aid

Approving further aid requires the unanimous consent of all 27 EU countries, though, and in recent months, Hungary has voiced opposition to that, citing Ukraine’s corruption

Hungary also threatened to block Ukraine from taking the initial steps to join the EU

In December, the EU held a summit to discuss steps for Ukraine to join the EU and approve new aid for the country

Ahead of the meeting, as part of what some analysts called a bribe, the EU unfroze $11B worth of funds to Hungary that had been withheld over concerns about democratic backsliding there

During the EU meeting, Hungary – which has strong ties to Russia – allowed Ukraine to begin steps to join the EU but blocked $53B worth of aid to Ukraine, citing the country’s corruption

The EU is set to meet again on February 1 to discuss that $53B aid package for Ukraine

Ahead of that meeting, several EU diplomats told news outlets that other EU countries are considering suspending Hungary’s voting privileges if it again blocks aid to Ukraine

Doing so would be unprecedented, and it is unclear how many EU countries support doing so

Then on Sunday, the FT reported that the EU has created a document highlighting steps it could take to punish Hungary economically if it blocks aid to Ukraine

The document says that the EU could block further funding to Hungary, which would cause “financial markets and…companies [to] be less interested to invest in Hungary”

That would hurt “jobs and growth” and exacerbate inflation, which is already high in Hungary

One EU diplomat who spoke to the FT said that economic pressure is necessary: “The stakes are high. It is blackmail”

In response to the report, Hungary’s EU minister said the country is committed “to explore the possibility of a more constructive and European solution” but will not back down under pressure

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