Hungary has reached an agreement with the United States that Prime Minister Viktor Orban says will provide his country with an “economic shield” to protect its economy and public finances from external threats.
Orban made the announcement after a meeting with US President Donald Trump at the White House, where Hungary also received a one-year waiver from US sanctions on Russian oil and gas and pledged to buy about $600 million worth of natural gas produced in the US According to Reuters.
According to Reuters, the agreement includes a guarantee from the United States that Budapest will be protected from attacks on its currency or investments, although the full details of the “shield” have not been disclosed.
Hungary’s Minister of Construction and Transport, Janos Lazar, said in a television interview that the agreement shows that Hungary “can no longer afford to be financially misled” by the European Commission after billions of euros in funding were stopped over legal disputes.
Orban stressed that with the US deal in place, Hungary would not face an economic crisis or a financial attack, saying that the shield meant “Hungarian economy could be suffocated in terms of investment, this should be forgotten.”
Analysts noted that the announcement came amid an economic slowdown in Hungary following Russia’s invasion of Ukraine, high inflation, and a suspension of EU funding due to governance concerns. Hungary’s currency, the forint, has appreciated this year but remains under pressure According to Reuters.
