Marton Nagy: Brussels Is Banking on Toppling of Hungarian Government

The strong economic growth figures projected earlier were not pulled out of thin air, economy minister says.

Marton Nagy, Hungary's National Economy Minister (Photo: Zoltan Kocsis Source: MTI Photo Editorial Office)

“The big question,” Nagy emphasized, “is whether we should reduce our dependence on the German economy.” The reality, he said, is that this dependence has not weakened in recent years but has actually grown stronger. Despite the diversification of foreign direct investment—with more capital coming from the East—integration has ultimately increased. “My position is that dependence on Germany has existed, exists, and will continue to exist,” he said, adding that Hungary must nonetheless work to expand its range of trading partners and broaden its markets.

Nagy recently visited the United States as part of the prime minister’s delegation. He explained that the so-called “protective shield” was agreed upon by the Hungarian prime minister and the president of the United States. This is not a single instrument, but a multi-element framework.

It includes the issue of a free customs alliance, but more importantly, development financing—such as cooperation between Hungary’s EXIM Bank and its American counterpart. 

The goal is for every major procurement from the United States, whether in defense or energy, to be backed by cheap financing. The possibility of establishing a swap line is also under review.

The question inevitably arises whether Hungary would be better off reaching an agreement with the European Union over funds it is entitled to receive. Nagy underscored that in the 2021–2027 budget cycle, Hungary was allocated approximately €28 billion in EU funds: €22 billion under operational programs and €6.5 billion in non-repayable grants from the Recovery and Resilience Facility.

Let’s be clear once again: this is our money. We are entitled to it. Brussels is imposing financial sanctions on Hungary by freezing EU funds on political grounds—making this a political, not a technical, issue.

“Brussels today is playing a political game and is clearly working to bring down the Hungarian government,” Nagy said. “I am partly a politician and partly a professional, but even as a professional I can see that when the European Union demands the abolition of utility price caps, the 13th-month pension, and the admission of migrants, this is not a debate of expertise. It is blackmail.” He likened the conditions to telling a country to “cut off your leg and then you’ll get the money—or rather, cut off both.”