U.S. President Donald Trump greets Hungary's Prime Minister Viktor Orban at the White House in Washington, D.C., U.S., November 7, 2025. REUTERS/Jonathan Ernst
U.S. President Donald Trump greets Hungary's Prime Minister Viktor Orban at the White House in Washington, D.C., U.S., November 7, 2025. REUTERS/Jonathan Ernst

BUDAPEST (Reuters) -Hungary's agreement with Washington on a "financial shield" shows it can find alternatives to European Union funding, which has been suspended over rule-of-law concerns, a top aide to Prime Minister Viktor Orban said on Monday.

Orban, who faces a closely fought election next year, met his longtime ally U.S. President Donald Trump at the White House on Friday, securing a waiver from U.S. sanctions for using Russian energy, a deal that has bolstered the forint.

Orban also said Hungary, whose economy has stagnated for the past three years amid high inflation following Russia's 2022 invasion of Ukraine, had brokered an agreement from Washington to protect its economy and public finances from external attack.

The White House has yet to comment on the arrangement.

DETAILS OF ARRANGEMENT UNCLEAR

Opposition leader Peter Magyar, who is campaigning on a pledge to have the frozen EU funding released should he win power, called on central bank Governor Mihaly Varga to unveil details about the agreement Magyar called a "rescue package."

The bank's press office did not reply to emailed questions seeking comment.

Janos Lazar, Orban's Construction and Transport Minister, said the U.S. financial shield meant Hungary could no longer be "blackmailed" by the EU, with billions of euros worth of funding currently suspended due to Orban's rule-of-law reforms.

"The United States of America will not let the Hungarian opposition, or in fact Brussels blackmail Hungary financially," Lazar said in an interview on YouTube.

"The posture of the U.S. government, its message is perfectly clear: if there is no money from Brussels, there will be money from the U.S."

A spokesman for the European Commission declined comment.

Economists at MBH Bank in Hungary said both the sanctions waiver and the financial shield would support the forint, which scaled new 1-1/2-year highs against the euro on Monday.

"It remains highly uncertain what kind of agreement the parties will ultimately reach. However, it is clear that, if necessary, the U.S. government is prepared to offer stronger support to countries whose political leadership it has good relations with," MBH economists said.

Orban, who trails his opposition rival based on most polls ahead of the 2026 vote, has alleged that the EU executive was trying to overthrow his government.

The agreement with Washington also involves Hungary supporting the construction of up to 10 small modular nuclear reactors worth up to $20 billion, buying $600 million worth of U.S. liquefied natural gas and $700 million of military equipment, based on State Department figures.

(Reporting by Gergely Szakacs; Editing by Alex Richardson)