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Speaking at a meeting of the Macroeconomic Dialogue at the political level (MEDPOL) in Brussels on Europe’s competitiveness challenges, Finance Minister Mihály Varga said that Europe’s role in the global economy has declined significantly in recent decades, while it is falling further behind global competitors.
Speaking at the meeting on Monday, chaired by the Hungarian Presidency of the Council of the European Union, Mihály Varga said that the persistent and worsening challenges across Europe require urgent and effective solutions, especially with regard to supporting families and households with children.
He said that there is an ongoing debate on the areas where policy responses to boost competitiveness should be focused.
In our view, the most crucial areas are ensuring real income growth, increasing productivity and investment levels, and making good use of the opportunities offered by the digital revolution,”
Varga said.
He added that the rapid ageing of European societies, declining birth rates, the difficulties facing social welfare systems, and growing labor shortages are all challenges across Europe to which support for families and households raising children can provide the right response.
Therefore, realigning the unfavorable demographic trends should also be given more consideration from a competitiveness perspective,”
he pointed out.
The Finance Minister recalled that Hungary is setting a good example in this area, having created the most comprehensive family support system in Europe, which the government intends to expand further next year.
The participants in the macroeconomic dialogue discussed possible courses of action. The meeting was also attended by Christine Lagarde, President of the European Central Bank, and Thomas Westphal, Director-General of the Council of Finance Ministers (Ecofin).
Via MTI, europa.eu; Featured image: MTI/Pruger Tamás