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Hungary in a state of emergency due to the war in Ukraine – The country on the brink of economic crisis

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The Hungarian government has declared a state of emergency in the country since Wednesday due to the war in Ukraine, Prime Minister Viktor Orban said in a Facebook video, noting that his cabinet needs room for maneuver to respond quickly to the challenges.

Orban, who won a fourth consecutive term in the April 3 electionhas used this emergency measure in the past, once due to the migration crisis and later during the Covid-19 pandemic.

“People are on the brink of an economic crisis,” he said, adding that his government “needs room for maneuver to act quickly.”

The approval of the state of emergency authorizes the Orban government to adopt swift measures, by decree.

Earlier today, a letter from the Hungarian Prime Minister to the President of the European Council was published stating that the proposed new EU sanctions against Russiaincluding the oil embargo, should not be discussed at next week ‘s summit of European bloc leaders.

Hungary, which is heavily dependent on Russian oil, has said it will need about 750m euros in short-term investment to upgrade its refineries and expand a pipeline carrying oil from Croatia.

Orban insists on a “veto” over the embargo on Russian oil

The proposed new EU sanctions against Russia, including the oil embargo, should not be discussed at next week’s summit of European bloc leaders, Hungarian Prime Minister Viktor Orban said in a letter to the President of the European Council.

In his letter dated yesterday, he stressed that it is unlikely that a solution will be found by then and that Budapest is unable to agree to the proposed EU sanctions until all outstanding issues have been resolved.

The European Commission proposed new sanctions against Russia this month, but they require the unanimous support of all 27 EU member states, and Hungary is blocking them.

Orban reiterated his position that “solutions must precede sanctions.” “Given the seriousness of the issues that remain open, it is very unlikely that a comprehensive solution will be found before the special session of the European Council on 30-31 May,” he said. “I am convinced that the discussion at the leadership level about the sanctions package without consent would be counterproductive.”

Hungary, which is heavily dependent on Russian oil, has said it will need about 750m euros in short-term investment to upgrade its refineries and expand a pipeline carrying oil from Croatia.

The Hungarian government also says that the long-term independence of its economy from Russian oil could cost up to 15-18 billion euros.

The Commission last week offered up to € 2 billion in support to countries which do not have access to the sea and depend on Russian supplies – Hungary, the Czech Republic and Slovakia. They were also offered a longer transition period.

However, the Hungarian Prime Minister said that there were “encouraging messages” from the European Commission that the EU REPowerEU project would provide a satisfactory solution to Hungary’s problems, adding that “the plan presented on 18 May does not address the serious concerns we have raised. “

Hungary remains committed to continuing the talks, he added.

An oil embargo, already imposed by the United States and Britain, is widely seen as the best way to reduce Russia’s financial resources and funding for the war in Ukraine. The EU has banned Russian coal.

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