Political moves: The US Federal Reserve building in Washington. Orban says the agreement would help shield the economy against headwinds such as an attack on the currency or a sovereign credit rating downgrade. — Reuters
BUDAPEST: Hungarian Prime Minister Viktor Orban says that US President Donald Trump agreed to support his country’s economy if it came under a speculative attack, although he didn’t offer any specifics about a deal.
“Yesterday, I sealed an agreement with the American president on a financial shield,” Orban told reporters en route back from a White House meeting with Trump, according to a video on pro-government website Mandiner.
A US fact sheet about the meeting contained no mention of such a promise and White House officials didn’t immediately respond to a request for comment.
Orban, who has led Hungary uninterrupted for 15 years and faces parliamentary elections in April, said the agreement would help shield the economy against headwinds such as an attack on the currency or a sovereign credit rating downgrade.
He portrayed it as a way to reduce reliance on the European Union, which has suspended more than US$20bil in financing earmarked for Hungary, citing corruption and rule-of-law concerns.
“If Hungary’s financial system comes under an external attack, the Americans gave their word that in such a case they’ll defend Hungary’s financial stability,” Orban was quoted as saying.
“You can forget about attacking the Hungarian currency, its budget or strangling Hungary from the financing side.
“We solved this with the United States.”
While Orban portrayed a Hungary potentially at risk, the opposition Tisza party has taken a double-digit lead in some polls amid a stagnant economy, allegations of widespread corruption and a cost-of-living crisis.
Investors cite the Hungarian central bank’s 6.5% interest rate – the European Union’s highest – and speculation that Orban may lose power for buoying the forint, which is trading at its highest level against the euro since May 2024.
Tisza leader Peter Magyar has vowed to roll back Orban’s nationalist overhaul and tap frozen European Union funds if he’s elected. — Bloomberg
