The European Union has “shot itself in the lungs” and risks destroying its own economy by imposing sanctions Russia about the invasion of Ukraine, the Hungarian prime minister has claimed.
Viktor Orban wanted the bloc to rethink its strategy, arguing that the punitive measures imposed by Brussels had done little to curtail Moscow’s war effort.
“At first I thought we had shot ourselves in the foot, but now it is clear that the European economy has shot itself in the lungs and is gasping for air,” he told Hungarian Public Radio. “The sanctions are not helping Ukraine, but they are bad for the European economy and if they continue they will kill the European economy. What we are seeing now is unbearable.”
The EU yesterday introduced its seventh tranche of economic sanctions against Russia in the wake of the invasion of Ukraine, including embargoes on Russian coal and oil imports in hopes of starving. Vladimir Putin‘s war machine of much-needed funds.
According to Didier Reynders, the EU’s Justice Commissioner, the bloc has frozen €13.8 billion in assets of Russian oligarchs and entities since February 24.
Orban, considered Europe’s closest ally to Putin, added: “The moment of truth must come in Brussels, when leaders admit they made a miscalculation, that the sanctions policy was based on wrong assumptions and it must be changed.”
In the midst of the conflict, European Commission economists have lowered growth forecasts across the continent.
The EU executive warned that as the war continues, the economic consequences “will worsen and reveal huge uncertainties over energy and grain supplies”.
Paolo Gentiloni, the EU’s economics commissioner, said: “Russia’s unprovoked invasion of Ukraine continues to send shockwaves through the global economy.
“Moscow’s actions are disrupting energy and grain supplies, driving up prices and weakening confidence.”
Economic growth in Germany and France is expected to slow this year and in 2023. The projected GDP growth for the EU remains at 2.7 percent this year, but is now projected to fall to 1.5 percent by 2023, compared to an earlier forecast of 2.3 percent.
The record inflation rate, 8.6 percent last month, is being driven by rising energy prices and fears that Berlin will plunge into recession if Russia cuts off its gas supplies to Germany.
Meanwhile, the European Commission’s legal service has warned that the bloc may have to lift sanctions against some Russian individuals over concerns that the measures were imposed on weak grounds. Of the hundreds of tycoons sanctioned by Brussels, about 30 have taken the EU to court.
The Commission has announced a “maintenance and alignment” package to strengthen six existing sanctions.
Ursula von der Leyen, the president of the European Commission, said: “Russia’s brutal war against Ukraine continues unabated. That is why we propose to strengthen, enforce and extend our tough EU sanctions against the Kremlin. Moscow must continue to pay a high price for its aggression.”
Telegraph Media Group Limited [2022]