Defending his stance, he prioritized Hungarian interests and dismissed accusations of being pro-Russia.Continue reading
The European Union should be involved in the state aided competition between the United States and China, said Minister of National Economy Márton Nagy at a conference in Antalya, Türkiye.
Minister Nagy was speaking at the Antalya Diplomatic Forum’s panel on the challenges of global trade. He noted that the economic dominance of Western countries is coming to an end as they are not able to adapt to new trends as quickly as their Asian competitors.
“Every economy is trying to promote the development of its own industry as intensively as possible in the so-called new industries – such as electric cars, 5G, robotics, artificial intelligence – but the European Union is increasingly at a competitive disadvantage,” he stated.
He also pointed out that the EU is giving the wrong answers to the unfolding global competition for state aid.
Instead of returning to the Maastricht fiscal criteria, the European Union should also participate in the state aid competition, following the example of the United States and China. In other words, the EU should spend as much public money as possible on increasing competitiveness, Nagy emphasized.
Minister of National Economy, Márton Nagy. Photo: Facebook / MCC
In this context, he noted that the United States and China will spend more than 20-25% of their GDP on the economy over the next five years, so their annual budget deficits are expected to be between 7-8%. In this situation, if the EU insists on keeping the budget deficit at 2-3% instead of supporting the economy, it means giving up competitiveness, he said.
Márton Nagy stressed that Hungary’s goal is to become a meeting point for Eastern and Western capital and technologies.
Thanks to the work of the government, including the policy of opening up to the East, Hungary is already a bridge between German car manufacturers like Audi and Chinese high-tech battery manufacturers like CATL. In addition, China’s BYD is the first in the EU to start production of its electric cars in Hungary, while defense industry’s production is also on the rise, in cooperation with Germany’s Rheinmetall.
Mr. Nagy stressed that incoming foreign direct investment is helping the spread of new technologies.
Digitalization and technological innovations such as artificial intelligence not only make trade processes faster and safer, but also contribute to boosting economic growth, he said at the conference, according to a statement by the Ministry of National Economy.
Via MTI; Featured Image: Facebook / Magyarbusz