Sign in Subscribe
European Union

Hungary Rejects EU Budget Proposal, Citing Benefits to Ukraine Over Hungary

Strategic Insights

— 2 min read

Hungary's Government Info press briefing presented a stark opposition to the European Commission's draft budget, which allocates a significant portion of funds to Ukraine while cutting support for Hungarian farmers and cohesion policy. Minister Gergely Gulyas described the proposal as a 'pro-Ukraine budget,' highlighting the allocation of £190 billion for Ukraine and £88 billion for enlargement purposes. The government expressed solidarity with protesting farmers, calling on all political actors to reject the proposal and support a cohesive agricultural policy. Beyond budget concerns, the government introduced the 'Home Start' loan program, aimed at providing affordable housing for working Hungarians.

Key Takeaways:

  • The European Commission's draft budget allocates £190 billion for Ukraine and £88 billion for enlargement purposes, while cutting funding for cohesion policy and the Common Agricultural Policy.
  • Minister Gergely Gulyas described the proposal as a 'pro-Ukraine budget,' emphasizing that Hungary cannot support it in its current form.
  • The Hungarian government expressed full solidarity with Hungarian farmers protesting the cuts and called on all political actors to reject the Commission's proposal.
  • The government also urged a return to an objective cohesion policy, free from political conditionality.
  • The 'Home Start' loan program will provide a 3% mortgage loan of up to HUF 50 million to working Hungarians without their own home, starting September 1.
  • The loan will be available for flats priced up to HUF 100 million or houses up to HUF 150 million, with a price cap of HUF 1.5 million per square meter.
  • The regulatory framework for the 'Home Start' loan program will be finalized by early August.
  • Hungary has proposed adding three Ukrainian military officials involved in the case of Sebestyen Jozsef, a Hungarian-Ukrainian dual citizen who died from injuries sustained during violent forced conscription, to the EU sanctions list.

Statistics:

  • £190 billion allocated for Ukraine in the European Commission's draft budget.
  • £88 billion allocated for enlargement purposes in the European Commission's draft budget.
  • 2,500 new EU bureaucracy employees planned by the Commission, with increased salaries.
  • Up to HUF 50 million available as a 3% mortgage loan under the 'Home Start' program.
  • Maximum loan term of 25 years under the 'Home Start' program.
  • Regulatory framework for the 'Home Start' program to be finalized by early August.
  • 3 Ukrainian military officials proposed by Hungary to be added to the EU sanctions list.

Sources:

  • "Government Info press briefing, dated [no date]".
  • "Prime Minister Viktor Orban's statement on the European Commission's draft budget, dated [no date]".

Read more