Orban warns of defence spending hike if Ukraine conflict continues
Hungarian Prime Minister Viktor Orban has stated that if the conflict in Ukraine is not resolved by 2025, his country will need to increase its defence spending. He emphasized that this would necessitate cutting funds for other projects.
3 May 2024 12:53
"If the war in Ukraine continues into 2025, then our expenditure on defence will have to be increased at the expense of other objectives," Orban said in a Friday interview on Kossuth Radio.
In 2021, Hungary allocated 2% of its GDP to military purposes, meeting NATO requirements. Yet, the government in Budapest is facing a higher budget deficit than expected, attributing this to the conflict in Ukraine. In mid-April, Finance Minister Mihaly Varga announced that planned investments worth £1.7 billion (675 billion forints) would be postponed because of the challenging economic climate.
Orban mentioned that should the conflict in Ukraine conclude, the Hungarian economy could potentially grow at double its current rate. He also pointed out the negative impact of the war on the German economy, which is a crucial trading partner for Hungary.
Emphasizing the need to diversify, Orban added, "While the Hungarian economy will remain within Europe, we must explore new opportunities in the East and Africa." He highlighted the upcoming visit by Chinese leader Xi Jinping to Hungary as a significant step, noting that it's no coincidence.
Hungary aims to deepen its cooperation with China
According to Hungarian Foreign Minister Peter Szijarto, China was Hungary's most crucial investor last year. The Hungarian government opposes imposing any restrictions on Europe's cooperation with China, especially in the electric car industry.
Media reports suggest that Xi Jinping will visit Hungary with a 400-member delegation and is expected to sign several bilateral agreements. Among the plans is the announcement of a new electric car factory near Pecs, in the country's south.
"Only those who vote for Fidesz are voting for peace"
With the European Parliament elections looming, Orban believes that attitudes toward the war in Ukraine are a key campaign issue, stating, "Only those who vote for Fidesz are voting for peace."
The Prime Minister stressed that he advocated for Hungary's EU membership in 2004 and still believes in the benefits of being part of the Union. However, he acknowledged that the EU has evolved, with gender and migration issues coming to the fore.
Orban expressed hope that if the European elections unfold as anticipated, and Donald Trump is re-elected as the President of the USA, the war in Ukraine might conclude by year's end.
The European Parliament elections in Hungary are set for 9 June, coinciding with local elections. Orban's government seeks to bolster representation for factions critical of supporting Ukraine against the Russian invasion and addressing migration issues.
