In a recent development, Hungary has accused the European Union (EU) of blackmail after a leaked document reportedly revealed the bloc's plan to sabotage Budapest's economy if it vetoes fresh aid for Ukraine. The tensions between Hungary and the EU have escalated following Prime Minister Viktor Orban's decision to block the use of the EU budget to provide 50 billion euros ($54 billion) in financial aid to Ukraine.

Hungary's minister for EU affairs, János Bóka, took to social media to denounce the leaked document drawn up by EU officials. The document, cited by the Financial Times, outlines Brussels' strategy to target Hungary's economic vulnerabilities and undermine investor confidence due to its blockage of funds to Kyiv. Bóka stated firmly, "Hungary does not give in to blackmail."

According to the leaked document, Brussels suggests that if Budapest persists in its opposition, EU leaders should commit to cutting off all funding to Hungary. This action could potentially cause market instability, weaken the country's currency, the forint, and lead to a rise in borrowing costs. However, a senior EU official clarified that the document serves as a background note describing the current state of Hungary's economy and does not propose any specific plans relating to Budapest, the EU budget, or Ukraine funding.

It should be noted that Hungary has long accused Brussels of using access to EU funds as a political blackmailing tool. The ongoing budget talks, according to the EU official, aim to reach a compromise that satisfies all 27 member states.

Prime Minister Orban's refusal to support financial aid to Ukraine has strained relations between Hungary and the EU, particularly as Orban previously blocked a vote on extending aid to the war-torn country. However, there are indications that Hungary may be reconsidering its position. The Financial Times report mentions Bóka stating that Budapest has submitted a new proposal to Brussels, indicating openness to utilizing the EU budget for Ukraine aid, with the condition that provisions are added to allow for a change in stance at a later date.

This latest development has drawn criticism from Balázs Orbán, the political director, who argued that the EU is unwilling to compromise with Hungary, resorting to blackmail. In light of this situation, Hungary's upcoming meeting with Sweden's counterpart aims to discuss the country's bid to join NATO, as Hungary currently remains the only holdout after Turkey's Parliament approved Sweden's bid last week.

As of now, there has been no immediate response from the EU spokesperson regarding Hungary's new proposal. Hungary's stance on supporting Ukraine has often posed challenges for the EU. The ongoing tensions between Hungary and the EU shed light on the complex dynamics at play within the bloc.

Correction: An earlier version misstated the name of Hungary's minister for EU affairs as János Boxa. The correct name is János Bóka.