Hungarian opposition leader Peter Magyar vowed on Sunday to unlock billions of euros of suspended European Union funding to revive the economy if elected next year and to hold a referendum on whether Ukraine should join the 27-member bloc.
Ratings agency Standard & Poor’s cut Hungary’s credit rating outlook to negative from stable late on Friday amid growing risks to fiscal stability from trade wars, lower EU fund inflows and high debt servicing costs amid budget loosening ahead of a 2026 election.
In power since 2010, prime minister Viktor Orban has been engaged in running battles with the EU on rule-of-law changes, which has led to a suspension of funding, hitting the economy weighed down by years of high inflation.
Some surveys show Mr Magyar’s centre-right Tisza Party has overtaken Orban’s nationalist Fidesz in opinion polls. This comes after two years of near-stagnation and new risks to Hungary’s export-reliant economy from US tariffs on imports from the EU.
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“Hungary will again be a proud and reliable Nato ally. Hungary will again be a fully-fledged member of the EU,” Mr Magyar told supporters after presenting the results of a nationwide survey he said would form the basis of a government agenda.
While Mr Orban’s government expects economic growth to accelerate to 2.5 per cent this year, ratings agency Standard & Poor’s sees a mere 1.5 per cent expansion, which would cap the weakest three-year stretch leading up to a national election during Mr Orban’s 15-year rule.
“Unlocking the EU funds alone could boost the economy by at least 1 per cent, which would yield an additional 800 billion forints (€1.9 billion) for the budget,” said Mr Magyar. He added that a predictable economic policy would curb debt financing costs.
Assessing the survey’s results, Mr Magyar said the issue of Ukraine’s EU membership was divisive, therefore, he would hold a binding referendum on the issue when the exact conditions of Ukraine’s entry emerge.
Mr Orban, who has strongly opposed providing Nato military and EU aid to Ukraine, says the country’s union membership would destroy Hungarian farmers and the wider economy. – Reuters
