Hungary’s Minister for Europe, Janos Boka, disputed the decision, asserting on Facebook that the country had met all the requirements for accessing the funds. “Brussels wants to take away the money that Hungary and the Hungarian people are entitled to for political reasons,” he claimed.
With EU funds on hold, Prime Minister Viktor Orbán has turned to China to bridge the financial gap. Back in April 2023, Hungary secured a €1 billion loan from Chinese state banks, a deal that remained under the radar until July when it was disclosed by Hungary’s Center for Government Debt. However, specifics regarding the loan’s terms, such as interest rates and repayment schedules, have not been made public.
This pivot to China highlights the deepening financial ties between the two nations. Chinese companies, including electric car manufacturer BYD and battery cell producer CATL, have been expanding operations in Hungary, with major factories being built in Szeged and Debrecen. Additionally, infrastructure projects like the Budapest-to-Belgrade railway, financed with a €900 million loan from the Chinese Exim Bank, underscore the growing influence of Chinese investment.
Despite securing Chinese loans, Orbán continues efforts to unfreeze EU funds, but the stakes remain high. The EU has blocked a total of €19 billion in funds, including other grants and pandemic-related support, keeping pressure on Hungary to meet the required reforms.
Orbán’s balancing act between courting Chinese investment and navigating EU demands reflects Hungary’s increasingly complex financial and political landscape.
