World
‘Nobody can blackmail us’: Leaders excoriate Orbán’s veto
Fury over Viktor Orbán’s decision to veto the European Union’s €90 billion loan for Ukraine burst into the open on Thursday as leaders castigated, one by one, in the harshest terms yet, the “unacceptable” behaviour of the Hungarian prime minister.
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The condemnation was led by António Costa, the usually mild-mannered president of the European Council, whose authority is being directly challenged by Orbán’s disruption.
“The leaders took the floor to condemn the attitude from Viktor Orbán, to remember that a deal is a deal and all the leaders need to honour that word,” Costa said at the end of the summit, venting months of frustration over the antics of the Hungarian.
“Nobody can blackmail the European Council. Nobody can blackmail the European Union institutions,” he told reporters after being questioned by Euronews, insisting that the loan will be paid out as agreed last December. Still, Orbán doubled down on his veto.
Separately, Costa praised Ukraine’s efforts to repair the Druzhba pipeline and allow an EU-led inspection on site in line with demands by Hungary and Slovakia just days before the summit, despite the fact that President Volodymyr Zelenskyy said he was personally against reinstating transit of Russian oil through Ukraine as the war continues.
Orbán insists that Ukraine has purposely sabotaged the pipeline to orchestrate an energy crisis ahead of a tight election on April 12. Zelenskyy says the allegation is unfounded but has also lashed out in public at Orbán in multiple occasions.
Costa, according to a diplomat, said both must tone down the rhetoric, but also noted that Hungary is putting on the table impossible conditions, such as ensuring the safety of transit, while Russia keeps pounding Ukraine with missiles and drones.
“This is not acting in good faith, when you put a condition that neither the European Union nor the member states can ensure,” Costa said.
“Because only Russia is willing to decide if they try again to destroy the Druzhba pipeline,” he added, noting Moscow has attacked it more than 20 times since 2022.
“And of course, it is not the responsibility of Ukraine, the Commission, the European Council or any member state.”
In an effort to break the impasse, Brussels announced two days before the summit that Ukraine had allowed an external inspection and the EU would provide funding to fix the pipeline. But the pressure on Zelenskyy to approve the on-site mission failed to get the Hungarian leader to change his mind.
And it now poses a direct threat to the credibility of the institutions, the functioning of the EU and the top leadership from Costa to Commission chief Ursula von der Leyen.
On Thursday evening, von der Leyen said Hungary, alongside Slovakia and the Czech Republic, agreed at the highest political level to go ahead with the loan in December in exchange for being financially exempted.
“That condition has been fulfilled. So let us be clear about where we stand: the loan remains blocked because one leader is not honouring his word,” she said.
“But let me reiterate what I already said in Kyiv: we will deliver one way or the other.”
German Chancellor Friedrich Merz also accused Orbán of an “act of serious disloyalty” that should be prevented in the future, changing voting rules if necessary.
French President Emmanuel Macron called for the December deal to be respected and warned that concerns about energy security “must not be instrumentalised”.
Sweden’s Ulf Kristersson, Austria’s Christian Stocker and Belgium’s Bart De Wever were among those who criticised Orbán for exploiting the dispute with Kyiv for his re-election campaign, which has taken an explosive tone in its final stretch.
High Representative Kaja Kallas went further, questioning the motivations of the veto and the Hungarian arguments: “I guess, in the time of elections, people are not that rational.”
No backing down
A roundtable session described as “heated and tense” by diplomats was not enough to get Orbán to back down. If anything, he doubled down. And leaders quickly understood the veto will most certainly remain until the Hungarian elections take place.
After the summit, the Hungarian leader went a step beyond and suggested Brussels is working with Ukraine to force a pro-Brussels government in Budapest.
“The European institutions, including parts of the Commission and the European Parliament, would like to have a change of government in Hungary. And they finance it,” he said as he departed the meeting.
The accusations are not new, but they are serious as they imply political meddling. As the campaign enters its final weeks, Orbán is intensifying his attacks on his opponent, Péter Magyar, as a puppet candidate of von der Leyen and Zelenskyy.
Before leaving Brussels, he vowed to “no money for Ukraine” until the oil flows are back and claimed he “had defended the Hungarian national interest by breaking the blockade”.
The Hungarian veto comes at a precarious time for Europe.
The United States, under President Donald Trump, has cut off all assistance to Ukraine, leaving Europeans to pick up the tab alone.
The €90 billion loan agreed in December, following contentious talks among leaders, serves as the backbone of Ukraine’s budget needs for 2026 and 2027. Without it, Ukrainian authorities have warned they may not be able to make ends meet, and that could have serious repercussions on the battlefield.
Under the original plan, Kyiv was supposed to receive the first payment in early April to avoid a sudden cut-off in foreign assistance. But the veto, coupled with the Hungarian vote, has thrown that timeline into disarray.
Although opinion polls show Orbán trailing Magyar by double digits, he could still win as the gap narrows ahead of the vote and prolong the veto even further.
To make matters more difficult, Slovak Prime Minister Robert Fico, whose country is also connected to Druzhba, has warned that he will continue the blockage if Orbán loses the elections and the pipeline is not repaired.
The dispute poses an exceptionally complex challenge for Brussels, which is caught between safeguarding energy security for member states and supporting Ukraine.
For António Costa, the person tasked with ensuring that decisions taken by EU leaders are upheld, Orbán’s defiance threatens to undercut his authority.
“It’s completely unacceptable what Hungary is doing,” Costa said on Thursday. “And this behaviour cannot be accepted by the leaders.”
World
Anthropic pledges $200 million to research AI’s economic impact as CEO suggests job loss solutions
Anthropic on Wednesday joined growing calls for the artificial intelligence industry to find ways to cushion people from the technology’s disruptions, announcing an initial $200 million investment to research AI’s impact on jobs and the economy.
Alongside new policy proposals from the maker of the Claude chatbot, Anthropic CEO and co-founder Dario Amodei published an essay on his personal website that expanded on his position that the government should promise economic support for those financially impacted by AI. The technology could produce much larger disruptions to the labor market than previous technological advancements, Amodei wrote, and those disruptions could last longer.
“The key challenge in such a world won’t be incentivizing growth, but finding a way for everyone to share in the benefits,” Amodei wrote.
The announcement comes on the heels of Anthropic rival OpenAI on Monday outlining goals that included ensuring gains from the technology are “widely shared.” OpenAI CEO Sam Altman recently met with Sen. Bernie Sanders to discuss a plan for the public to take an ownership stake in artificial intelligence companies like OpenAI, using their stock to create a public wealth fund that would spread the fortune generated by AI behemoths.
In the Oval Office on Wednesday, President Donald Trump told reporters that he will soon meet with executives from several leading AI companies to discuss “giving back” to the public.
“We’re talking about giving back something to the public, and if we do that, the public will become very rich,” Trump said. “I think they’ll do that, and I think it’ll make it very popular.”
In his essay, Amodei said he has warned of job displacement not because he is “trying to be a ‘prophet of doom’” but because he wants “both policymakers and the private sector to have the best chance to adapt and respond.” He proposed better data collection to track AI job displacement, pro-employment policy incentives to slow or reduce displacement and “mechanisms such as universal basic income” if job displacement more permanently drives down labor demand.
That universal basic income could be financed through taxes on “relevant companies” or by raising the capital gains tax, Amodei wrote.
Scant details were available Wednesday about the $200 million commitment from Anthropic, but the company said it will go to what it calls an Economic Futures Research Fund that will back research trials and “program evaluation” on public policies it deems promising. The company is also establishing a $150 million national fellowship program it says will help early-career professionals “extend the benefits of AI to communities across America.”
Anthropic and OpenAI each recently announced they were moving toward initial public offerings of shares, following Elon Musk’s rocket company SpaceX, which is pitching itself as an AI-focused space company as it prepares to go public.
The economic policy framework Anthropic proposed Wednesday set recommendations for how the U.S. government could respond to three levels of economic disruption caused by AI: one in which the national unemployment rate reaches 5%, 10% and an unspecified, “unprecedented” level. The latest unemployment rate, reported last week, was 4.3%.
In the “unprecedented” scenario, the company wrote that more permanent support will be necessary, and it listed several ways to generate and share revenue broadly, including basic income, sovereign wealth models and equity-sharing mechanisms. This would be “novel economic territory,” the company wrote.
The company’s proposals also outlined several suggestions for mitigating safety and security risks. Anthropic is known for its emphasis on safety and building reliable, “steerable” AI systems, with Amodei and its co-founders splitting off from OpenAI to form the new company in 2021.
The proposals add that the government should be able to “block or deter” the rollout of AI models that “pose a significant risk of catastrophic harms.”
Amodei wrote that AI regulations should match the rigor of Federal Aviation Administration regulations in that AI models would be required to go through technical testing and auditing like airplanes. They wouldn’t be released if they didn’t meet high safety standards.
Last week, Trump signed an executive order on AI oversight that established a framework for the government to vet the national security risks of the most advanced AI systems for up to a month before their public release.
Amodei added existing regulations for aircraft, automobiles and drugs should serve as models for regulating AI. They are all “powerful technologies essential to the modern economy,” he wrote, “but capable of killing large numbers of people if designed or operated poorly.”
World
UK spy powers draw US scrutiny over alleged Apple encryption backdoor demand
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U.K. surveillance laws drew scrutiny from House Judiciary Committee Chairman Jim Jordan, R-Ohio June 5 amid warnings they could expose communications of officials and American citizens, according to reports.
The concern centered on the U.K.’s use of secret Technical Capability Notices under the Investigatory Powers Act, which critics say could make U.S. companies weaken encryption or create “backdoors” weaken encryption or create “backdoors” while preventing firms from disclosing requests without U.K. government approval.
Critics have argued this could undermine privacy, create vulnerabilities and limit congressional oversight with one former intelligence official warning of a “standing invitation to Beijing.”
“We have already seen how this ends,” former Department of Defense official Andrew Badger told Fox News Digital.
JD VANCE ‘DIRECTLY’ CONVINCED UK TO DROP APPLE BACKDOOR DATA DEMAND, PROTECTING AMERICANS’ RIGHTS: US OFFICIAL
Rep. Jim Jordan said Republicans are “the party of common sense,” and Democrats are “the party that takes these crazy positions.” (Kevin Dietsch/Getty Images)
“There are legitimate privacy concerns here, and those have been well aired. The less examined issue is national security,” Badger said.
“A backdoor compelled by one ally becomes a standing invitation to Beijing, Moscow and Tehran so once one government can quietly compel access, others will demand the same, and a one-off concession hardens into a permanent vulnerability,” he warned.
According to the Telegraph, a June 5 letter sent by Jordan to U.K. Home Secretary Shabana Mahmood, showed the Trump ally had called for a review.
The report said Mahmood’s decision had been to deny a U.S. company permission to speak with Congress about an alleged encryption backdoor notice.
Jordan was also said to have warned that a lack of bilateral coordination raised concerns about the “trust and effective partnership between our two countries.”
“Five Eyes works because every partner trusts the others not to weaken the systems they all depend on,” Badger, co-author of “The Great Heist: China’s Epic Campaign to Steal America’s Secrets,” said.
“If Washington also concludes that U.K. surveillance powers could inadvertently expose Americans and American officials to espionage, it puts real strain on the relationship and makes future cooperation on intelligence and cyber harder to sustain.”
US SPIES URGED TO REFOCUS EFFORTS ON AMERICA’S BACKYARD, NEW HOUSE INTEL CHAIR SAYS
The Thames House headquarters of MI5 in London on Nov. 18, 2025. Britain’s domestic security service has warned of growing state-backed threats, including more than 20 Iran-backed plots uncovered in the UK, as lawmakers consider new legislation targeting foreign state-linked groups. (Betty Laura Zapata/Bloomberg via Getty Images)
On the encryption issue, Badger noted that mainstream encrypted platforms now function as “de facto infrastructure for sensitive communication well beyond the consumer market.”
“Any access point built into them becomes a permanent target. It is not a private key the requesting government gets to keep to itself,” he said.
U.S. and British cyber officials have also repeatedly warned that an axis of hostile states — including Russia, China and Iran — poses threats to Western security and infrastructure.
As previously reported by Fox News Digital, cyberespionage by groups such as Salt Typhoon, linked to China, has carried out operations targeting sensitive communications.
“China is actively running one of the largest state-backed cyberespionage operations ever uncovered. The Salt Typhoon campaign has targeted hundreds of organizations across roughly 80 countries and, through those intrusions, gained access to sensitive communications and networks used by senior Western officials,” Badger warned.
“Chinese state hackers didn’t defeat encryption. They walked straight through the lawful-intercept systems telecom providers had built, reaching the communications of senior officials and even information about surveillance targets.”
CHINESE BIOWEAPON SMUGGLING CASE SHOWS US ‘TRAINS OUR ENEMIES,’ ‘LEARNED NOTHING’ FROM COVID: SECURITY EXPERT
The flag of China is flown behind a pair of surveillance cameras outside the Central Government Offices. (Roy Liu/Bloomberg via Getty Images)
Reports also surfaced that U.K. Foreign Secretary Yvette Cooper used a burner phone during a recent trip to Beijing and raising further concerns about state-sponsored espionage.
Badger noted that the episode reflects a broader pattern of Chinese targeting of British democratic institutions, including the “hacking of senior Downing Street officials’ phones and an Electoral Commission breach that exposed the data of roughly 40 million voters,” he said.
“The telling thing is that no one issues burner phones for a trip to Sweden or Germany,” he said.
“The precaution is itself an admission of the threat environment. The working assumption — correctly — is that anything digital taken into China should be treated as potentially compromised.”
The systemic vulnerability also highlights a fundamental contradiction in Western diplomatic strategy, according to Badger.
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“This case perfectly underscores the contradiction at the heart of the U.K. Labour government’s China policy: chasing positive economic relations and expanded trade with Beijing on one hand, while being forced to take elaborate precautions against a state whose core interests remain fundamentally at odds with its own on the other,” Badger said.
“You can’t simultaneously treat China as a trusted economic partner and a hostile intelligence threat. It’s a fundamental contradiction. The need to use burner phones symbolically underscore this.”
World
Trade and defence top of agenda at EU-South Korea summit
European Commission President Ursula von der Leyen, European Council President Antonio Costa and with South Korean President Lee Jae-myung celebrated the signing of new a digital trade agreement at a ceremony in Brussels on Wednesday.
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The event marked the EU and South Korea’s 11th summit, with everything from security and defence to trade on the agenda.
“Korea is one of Europe’s closest partners in the Indo-Pacific region and on the global stage,” von der Leyen said. “In today’s uncertain world, stable and trusted partnerships like ours are more precious than ever.”
The trio released a joint statement extolling the value of the talks and committing the two sides to a firm and friendly relationship.
“We reaffirm our shared commitment to effective multilateralism, and to a stable and predictable rules-based free and fair economic order,” the statement reads.
The semiconductor factor
Both sides have an interest in diversifying their trade relationships at a time of growing tensions with both China and the US, and the EU-South Korea digital trade agreement comes more than a decade after a landmark free trade deal.
Since 2015, trade between the EU and South Korea has doubled, with goods trade reaching approximately €124.25 billion in 2025, according to figures from the European Commission.
“The European Union-Korea Free Trade Agreement remains one of the European Union’s most successful trade agreements since its entry into enforcement in 2011,” European Council António Costa said on Wednesday.
South Korea is becoming an increasingly important investor in Europe, particularly in strategic sectors such as batteries, electric vehicles and semiconductors.
For the EU, a key objective is to secure semiconductor supply chains while attracting further investment from Korean companies into Europe.
“Korea has a global leadership position in semiconductors,” an EU official said. “This is clearly an area with significant potential for cooperation that would benefit both sides.”
The digital trade agreement concluded on Wednesday is expected to complement the broader trade partnership by reducing “unnecessary barriers to digital trade” and providing greater “legal certainty” for businesses operating across the two markets, according to another EU official. It will facilitate cross-border data flows while prohibiting the mandatory transfer of source code.
The deal is also designed to establish robust online consumer protection rules, though both partners intend to maintain their respective levels of protection for personal data and privacy.
Economic security was also high on the summit agenda, with the two sides agreeing to establish a high-level dialogue on supply chain resilience.
Supply chains came under pressure last year following China’s restrictions on exports of strategic materials, including rare earths – essential for green technologies and the defence sector – as well as products linked to the chip industry, which are critical to automotive manufacturing.
Security and defence
One thing that did not get over the line was a security of information agreement, which had been touted by EU officials prior to the summit as a means of strengthening the flow of classified information between Brussels and Seoul.
“I hope that the security of information agreement will be adopted soon, so that Korea and the EU can share confidential information safely, which will allow the two sides to engage in industrial and research cooperation actively through information exchange exchange,” President Lee said on Wednesday.
The agreement would build on the Security and Defence Partnership agreement that South Korea and the EU signed in 2024. That deal was designed to facilitate cooperation in areas spanning maritime security, countering hybrid threats, fighting foreign information manipulation and interference, and more besides.
In the run-up to this week’s talks, a senior EU official said a key topic of the discussions will be nuclear non-proliferation, as North Korea continues to hold a small but concerning stockpile of nuclear-armed warheads.
North Korea (the DPRK) and Russia were considered “big questions” at the summit, the source said, with Brussels ready to share information on its support for Ukraine with Seoul.
The joint statement from the summit reiterates this, with words of condemnation directed at North Korea and other nations who enable Russia to sustain its war of aggression against Ukraine.
“We urge Russia and the DPRK to immediately cease all such activities and abide by the UN Charter and all relevant United Nations Security Council resolutions,” the statement reads.
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Anthropic pledges $200 million to research AI’s economic impact as CEO suggests job loss solutions