Published: December 18 2023
Hungary has threatened to veto Bulgaria's Schengen accession if it continues to impose a punitive tax on natural gas supplies. This tax endangers the transit of gas to northern Macedonia, Serbia, and Hungary, as much of the gas needed for the country comes through Bulgaria. Hungary is insisting that the tax be lifted in order to ensure a stable gas supply to the region.
Hungary's Veto Threat
Hungary has made it clear that it will veto Bulgaria's Schengen accession if the punitive gas tax is not lifted. The Foreign Minister, Péter Szijjártó, described Bulgaria's decision as "scandalous and hostile" and highlighted the potential negative impact on gas supplies to the region. Hungary believes that the tax endangers the transit of gas to northern Macedonia, Serbia, and Hungary and poses a risk to the stability of the region.
Background on the Gas Tax
Bulgaria introduced a special duty on Russian gas flowing through its territory to Serbia and Hungary in mid-October. There is speculation that this decision is linked to the U.S. government's support for Bulgaria's left-liberal forces during the elections. However, in response to Hungary's veto threat, Bulgaria announced the lifting of the tax on December 11th. Bulgarian Prime Minister, Nikolai Denkov, stated that they did not want to put up obstacles to their Schengen accession and would abolish the tax.
Hungary's Position
Despite Bulgaria's announcement of lifting the tax, Hungary remains skeptical and reiterates its determination to use its veto if the tax is not effectively removed. Hungary is concerned about the impact of the tax on gas supplies to the region and insists on a stable gas supply in order to ensure the energy security of northern Macedonia, Serbia, and Hungary.
Conclusion
The imposition of a punitive tax on natural gas supplies by Bulgaria has led to a potential veto threat from Hungary. Hungary highlights the risks to gas supplies in the region and insists that the tax be lifted in order to guarantee a stable gas supply for northern Macedonia, Serbia, and Hungary. The situation remains uncertain as Bulgaria has announced the lifting of the tax, but Hungary remains cautious and ready to use its veto if necessary.
Questions & Answers
What is the issue between Hungary and Bulgaria regarding gas supply? Hungary has threatened to veto Bulgaria's Schengen accession if it maintains the punitive tax on natural gas supplies. This tax endangers the transit of gas destined for northern Macedonia, Serbia, and Hungary.
Why does Hungary consider Bulgaria's move "scandalous and hostile"? Hungary sees Bulgaria's decision to impose a tax on natural gas as scandalous and hostile because it jeopardizes the gas supply to Hungary and other countries in the region.
Why is the gas supply important to Hungary? Given the current geopolitical and security situation, Hungary heavily relies on gas supplied through the pipeline that passes through Bulgaria to supply the country's gas needs.
What does Hungary threaten to do if Bulgaria doesn't lift the gas tax? Hungary threatens to veto Bulgaria's Schengen accession if the punitive gas tax is not effectively lifted.
What is Bulgaria's response to Hungary's threat? Bulgaria initially lifted the tax due to fears of Hungary vetoing its Schengen accession bid. However, Hungary insists on the complete abolition of the tax, and the issue is ongoing.
What is the background to Bulgaria's decision to impose a tax on Russian gas? Observers speculate that Bulgaria's decision to impose a tax on Russian gas flowing through its territory is linked to the U.S. government's contribution to the electoral victory of Bulgaria's left-liberal forces.
What is the current status of the gas tax issue between Hungary and Bulgaria? The issue is ongoing, and Hungary has reiterated its determination to use its veto if the punitive gas tax is not effectively lifted.
