Finance Minister Advocates for EU Competitiveness and Economic Neutrality

Mihály Varga at the Ecofin meeting in Luxembourg.

Finance Minister Mihály Varga emphasized the urgent need to restore the EU’s competitiveness, calling it the continent’s greatest challenge, following a meeting of the Ecofin Council in Luxembourg.

The meeting brought member states closer to a new European competitiveness agreement, which Minister Varga sees as crucial for relaunching Europe’s economy.

He expressed concerns about the EU’s economic trajectory, noting that both the US and China have significantly outpaced Europe in growth, with the US economy growing five times faster and China’s ten times faster.

He warned that the EU’s current approach, particularly its bloc-building policies and trade wars, will further weaken its position.

“This is the wrong way to go,” Mihály Varga stated, stressing that interconnectivity, not conflict, is key to improving the EU’s competitiveness. He also called for reforms to improve the efficiency of European financial markets, emphasizing that channeling capital market resources into development and investment is the right direction for the EU.

Hungary, currently holding the rotating presidency of the Council of the European Union, is playing a pivotal role in shaping policies that enhance competitiveness across the Union.

Mr. Varga reaffirmed Hungary’s stance on economic neutrality, highlighting the country’s openness to both Western and Eastern markets.

He voiced strong opposition to the EU’s punitive tariffs on Chinese electric vehicles, arguing that such measures hinder competitiveness. Additionally, the Minister criticized the slow and bureaucratic disbursement of the EU’s post-pandemic recovery funds (RRF – The Recovery and Resilience Facility), pointing out that Hungary has only received eight percent of its entitled funds four years after the pandemic.

Mihály Varga’s remarks at the Ecofin meeting highlight Hungary’s commitment to improving EU competitiveness through interconnected policies and efficient financial markets, while maintaining economic neutrality.

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