The Schengen system may disintegrate, may simply cease to exist if the European Union is unable to protect its external borders, and this would have unforeseeable economic effects, Péter Szijjártó said at the event where the latest, 2015 country report of the Hungarian European Business Council under the title For a stronger Hungary in a stronger Europe was presented.
The authors of the report are the members of HEBC, the most senior executives in Hungary of the companies ABB, AkzoNobel, British Telecom, Ericsson, GDF Suez, Magyar Telekom, Henkel, Nestlé, OMV, Philips, SAP, Shell and the Volvo Group Trucks.
There is a fierce fight in the world for new investments; however, in this process preserving old investors is just as important as attracting new ones, Mr Szijjártó stated, also with reference to the latest agreement entered into with Audi.
The Minister of Foreign Affairs and Trade highlighted: education and the availability of adequately qualified work force in increasingly large numbers are very important in the fight for investors.
Mr Szijjártó pledged to consult with the executives of the members of HEBC as part of a thematic meeting within a short time where the parties will tackle the issues of the training of work force and the new vocational training system.
The Minister of Foreign Affairs and Trade pointed out: the flood of immigration represents the gravest challenge of all time for the European Union. This is effectively a modern-day mass migration which has inexhaustible reserves.
He highlighted: we must talk about this frankly and honestly because the economic dimensions of immigration are extremely serious. There are some 30 to 35 million people living in the vicinity of the borders of Europe who are in a situation today which compels them to set out for Europe. If Europe is unable to regain its ability to protect its external borders – or to at least keep them under control – the question will arise sooner or later as to whether the Schengen zone is sustainable, he said.
The Schengen zone is based on the presumption that every country protects its external borders, and there is free movement within the protected external borders, Mr Szijjártó highlighted.
Regarding the economic dimensions of the migrant crisis, Mr Szijjártó described the issue of the sustainability of the economy as a „primary economic issue” from the viewpoint of Europe, in addition to the issue of energy security.
The Minister of Foreign Affairs and Trade said: the European Union accounts for some 7-8 per cent of the population of the world, is responsible for 15-16 per cent of the world’s economic performance, and distributes 50 per cent of the world’s social and welfare expenditures which will be difficult to sustain in the long run. He argued that in the past the fiscal system was a major factor of competitiveness, and so was the quality of the infrastructure, but investors today look upon these, too, as necessary given features.
He highlighted: energy security is an extremely important question for Central-Europe. The situation is that, “thanks to all sorts of geo-political games”, Central-Europe’s energy security is yet to be resolved, he said, adding that it is in the best interests of the whole of Europe to resolve the question of the region’s energy security.
“This is why we are shocked that our friends in Europe have frustrated the South Stream project”, while Gazprom, Eon, OMV and Shell sign an agreement at an economic forum in St. Petersburg on Nord Stream 2, the Minister said.
Mr Szijjártó pointed out: this is another reason why it is so fundamentally important to implement the Paks project despite all opposition because the enlargement and long-term maintenance of the capacity of the Paks atomic power station represent Hungary’s energy security.
Regarding investments, the Minister said: in the competition for new investments, we must not forget the importance of cooperation with investors who are already present in Hungary. He told his audience: it is good news that the Government signed another agreement with Audi regarding the creation of 380 new jobs.
Mr Szijjártó underlined: the Government appreciates the investments of foreign investors already present in Hungary at least as much as the investments made by newcomers.
This is why the system of strategic agreements is so important, as by virtue of those we seek to tie investors already present in Hungary more to ourselves, the Minister said, adding that the Government will enter into another two strategic agreements in the near future.
HEBC’s report for this year highlights: the organisation believes it is important that Hungary should prepare in time for the expected industrial and technological changes, with a view to strategic goals such as the development of the education systems and the exploitation of international innovation potential.