Brexit’s impact on Hungary
July 5th, 2016A conservative analyst warns that Hungary ought to start factoring in the unfavourable consequences the departure of Great Britain from the EU will have on its economy and international standing.
In his Magyar Hírlap editorial, Csaba Szajlai argues that even if Great Britain and the European Union manage to preserve most of their cooperation, the impact of Brexit will be negative for Hungary. A direct consequence will be a shrinking EU budget since the United Kingdom is one of the largest net contributors. Hungary, on the other hand, is one of the main beneficiaries and since the remaining net contributors cannot realistically expected to increase their share, structural and cohesion funds will most probably be cut back. Another problem is that Hungary is losing its strongest ally in its efforts to promote a reform of EU institutions and policies. Hungary is also worried about the future of Hungarian citizens living in the United Kingdom and more generally about economic and cultural co-operation with Great Britain. ‘What a pity’, Szajlai exclaims, that ‘we kept deluding ourselves that Brexit would never happen!’. Now it would be equally foolish to imagine that Brexit will not harm us, he warns.