Hungary Secures U.S. Financial Support Amid EU Tensions

Hungary's strategic agreement with the U.S. offers financial alternatives to European Union funding, which remains suspended due to rule-of-law disputes. This development comes as Prime Minister Viktor Orban prepares for upcoming elections, bolstering Hungary's economy and strengthening ties with the U.S. and China.

Hungary has struck a significant deal with Washington, establishing a "financial shield" that provides an alternative to European Union funding currently suspended over concerns about rule-of-law violations. The announcement was made by a senior aide to Prime Minister Viktor Orban, coinciding with his electoral campaign.

During his recent meeting with President Donald Trump at the White House, Orban secured a U.S. waiver on sanctions concerning Russian energy, thereby stabilizing Hungary's economy and currency, the forint. Orban's government, grappling with an economy slumping under high inflation post-Russia's 2022 Ukraine invasion, views this agreement as a protective measure against economic vulnerabilities.

Construction and Transport Minister Janos Lazar emphasized Hungary's newfound financial independence from EU pressures, citing billions in previously blocked funds due to rule-of-law reforms. Additionally, Hungary will collaborate on various U.S. initiatives, including nuclear reactor construction, LNG purchases, and military equipment procurement.

(With inputs from agencies.)