Hungary still aiming for US backstop after first attempt fizzles, Orban says

BUDAPEST, Jan 5 (Reuters) – Hungary has not managed to secure the type of financial assistance it had originally sought from Washington ahead of a 2026 election, Prime Minister Viktor ‍Orban said on Monday, adding that talks on a possible backstop were ongoing.

In power since 2010, eurosceptic Orban has struggled to revive Hungary’s economy from an inflationary surge following Russia’s February 2022 invasion of neighbouring Ukraine, with the economy mired in a three-year stretch of stagnation.

With Hungary still ‌strongly reliant on Russian energy imports, President Donald ‌Trump has granted Orban a one-year exemption from U.S. sanctions on Russian energy, staving off an energy price surge, which would have hit Hungary’s economy hard.

The two leaders also discussed forms of financial assistance in November, ​although Trump last month rebuked Orban’s claim that Washington had already agreed to provide Hungary a backstop worth up to $20 billion.

“I ‍have requested a (financial) shield, but the type ​of assistance that would have been acceptable for ​both the U.S. and Hungary was not available,” Orban told a press ‍conference.

Orban is facing what could be the toughest challenge to his 16-year rule from a combination of Hungary’s prolonged economic stagnation, a surge in the cost of living and an abuse scandal, which has triggered the rise of a strong opposition rival.

The veteran ‍leader has launched tax cuts, wage hikes and cheap loans for homebuyers to shore up his poll standings at the cost of a higher ‍budget deficit, inflationary ‍risks and the slow decline in the European ​Union’s largest debt pile outside the euro zone ​stalling.

When asked ⁠whether he could expect more help from Washington ‌ahead of the election, likely to be in April, Orban said:

“Whether the American president or some high-ranking American leader will come to Hungary? This is likely, because in spring there will be political events in Hungary that high-ranking American leaders always attend.”

(Reporting by Anita Komuves, Gergely Szakacs; Editing ⁠by Alison Williams)