Gergely Szakacs and Krisztina Than

BUDAPEST (Reuters), – Monday saw Viktor Orban, Hungarian Prime Minister, raise the spectre that Europe is in an “era” of recession as Europe grapples in Europe with rising energy costs and higher inflation following the war in Ukraine.

After being elected to office in April, Orban took his oath and stated that Brussels was “abusing it power day after day”, by repressing the sovereignty of member states.

He said that Hungary would be in the European Union over the following ten years.

He stated that Hungary wouldn’t block sanctions from the European Union against Russia in response to its invasion Ukraine. However, they must not pose a risk to Hungary’s security of energy.

Hungary and a handful of other EU member countries have so far rejected EU sanctions on Russian oil. Budapest claims it needs hundreds of millions in euros from the bloc, to offset the costs of abandoning Russian oil. To allow the embargo to be lifted, all 27 EU states must agree.

His new government’s most significant task would be to guide Hungary through the European crisis and to defend the benefits and tax breaks granted families, as well as the capped energy bills of households.

Orban stated that the war in Iraq and Europe’s response of sanctions had created an energy crisis.

High inflation is a result of the combination of the US interest rate increases and the energy crisis. This will lead to the end of economic growth, which will see a decrease in economic output and stagnation, as well as years of small increases in production.

Orban, who has clashed repeatedly with the EU about policies, including those relating to LGBTQ rights and the rule of law, said that the significance of Hungary becoming a NATO member was never more obvious than now.

According to him, the conflict in Ukraine will “last for quite some time…and pose a serious security risk to Hungary.”

He stated that the National Bank of Hungary would need to work with the government to reduce inflation.

Orban declared in a speech, “We will sync those steps…we’ll take prudent but firm actions to regulate prices.” His government already caps fuel prices and basic foodtuffs, mortgage rates, and households’ monthly energy bills.

The European Commission released its latest economic forecasts earlier in the day. It stated that Hungary’s GDP would fall to 3.6% from 7.1% in 2021 and average inflation would be 9%.

It stated that the deficit will remain high at 6.0% GDP in 2022 due to the addition of expansionary measures as well as additional spending on high-energy prices.