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Competitiveness Figures Show Europe’s Economy in Decline, Minister Warns

MTI-Hungary Today 2024.09.12.

The most important objective of the Hungarian EU Presidency is to strengthen Europe’s competitiveness, that is lagging behind the world’s economies, and the cooperation of the other Member States is also expected in this respect, Mihály Varga said at the Eurofi Budapest Financial Forum on Wednesday.

The Minister of Finance stressed that Hungary supports economic neutrality and a policy based on cooperation between economies, instead of bloc formation. The minister pointed out that today the United States’ economy is growing five times faster than the European Union’s, while China’s ten times faster.

Competitiveness data clearly show that Europe’s economy is in decline and we are not exploiting the opportunities available,”

he added.

Mihály Varga said that Hungary has built a work-based economy over the past 15 years, which has stood the test even during crises. Hungary has one of the best tax environments and capital leverage in Europe, as well as a family support system. In addition, the country’s above EU average economic growth “also underpins our positive vision for the future.”

The minister pointed out that

the Recovery Instrument grants, administrative burdens, the closure of nuclear power plants, support for migration and the sanctions imposed have all shown that EU decision-making today is a mix of economic and political objectives.

The politician stressed that Hungary’s position is that Europe’s economic strength cannot be sacrificed for ideological goals, but that goals and measures must be defined in the light of real economic interests.

Presenting the Hungarian presidency‘s offer to strengthen Europe’s competitiveness, the minister said that for Hungary, a top priority is the adoption of the new European Competitiveness Pact, that builds on instruments such as

  • deepening the internal market,
  • priority support for small and medium-sized enterprises,
  • and promoting the green and digital transition in partnership with European economic actors and European citizens.

Mihály Varga also pointed out that demographic problems threaten the social care system and the balance on the labor market. He said that the Hungarian position is that Europe’s future lies in its young people, and therefore the expansion of the EU’s demographic toolbox, that focuses on supporting families, is of the utmost importance.

Consensus among EU Ministers at Budapest Meeting under the Hungarian Presidency
Consensus among EU Ministers at Budapest Meeting under the Hungarian Presidency

The Hungarian Presidency of the Council of the EU aims to lay down the outlines of a new European competitiveness pact by November 8.Continue reading

Via MTI, Featured image: Facebook/Varga Mihály


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