Hungarian Prime Minister Viktor Orban said on Sunday that his government has reached an agreement with the United States to establish a “financial shield” aimed at protecting Hungary’s economy and public finances from potential external shocks.
Speaking to reporters aboard his flight home from Washington, where he met U.S. President Donald Trump on Friday, Orban said the arrangement would safeguard Hungary’s financial stability in the event of international market disruptions or targeted economic pressure.
“Should there be any external attacks against Hungary or its financial system, the Americans gave their word that they would defend Hungary’s financial stability,” Orban said in a video published by index.hu. “That Hungary or its currency could be attacked, or that the Hungarian economy could be suffocated from the financing side, this should be forgotten.”
The meeting, held at the White House, also produced a one-year U.S. exemption for Hungary from sanctions targeting Russian oil and gas, a move Orban had lobbied for amid his government’s heavy reliance on Russian energy imports.
In return, Budapest agreed to purchase U.S. liquefied natural gas (LNG) worth about $600 million, according to a White House official.
Orban, a longtime ally of Trump and frequent critic of the European Union, did not provide details of how the “financial shield” would operate but suggested it would guarantee Hungary’s access to financing if market conditions deteriorate.
The EU has withheld billions of euros in cohesion and recovery funds from Budapest over rule-of-law disputes, leaving Hungary’s fiscal position strained.
Hungary’s economy has stagnated over the past three years following a period of high inflation triggered by Russia’s 2022 invasion of Ukraine.
Despite fiscal challenges, the forint has been one of the best-performing Central European currencies this year, supported by the region’s highest interest rates.
Orban, who faces a potentially tight election next year, framed the agreement as proof that Hungary remains financially secure. “With this understanding, Hungary will not have financing problems,” he said.
Source: Reuters
Written By Rodney Mbua
