Hungary does not want to quit the European Union, but to reform and to change its system of institutions so that every country may become successful, János Lázár, the Minister heading the Prime Minister’s Office stated at the financial summit Hungarian Business Leaders Forum (HBLF).
At the forum entitled Financial Summit 19, The New World? Global Challenges of Europe and America, Mr Lázár stressed that we would like to reform the EU together with the Visegrád countries, based on Central-European and national interests. He took the view that Brexit was an historic mistake, but according to the position of the Hungarian Government, it may contribute to the attainment of fundamental changes in the European Union.
He said: according to the European socialists, the EU will be competitive if they create an ever closer union, but the Hungarian Government takes the view that this is completely contrary to the best interests of Hungary and national interests. He stressed: we must put an end to legal insecurity as many of those working in Britain do not know what awaits them. In the context of Brexit, it is important both for the German economy and the Hungarian economy that maintains close relations with it what kind of a trade agreement the EU will strike with Britain. Hungary has a vested interest in the simultaneous implementation and swift conclusion of the negotiations on trade and the EU budget.
Hungary will take over the Presidency of the V4 alliance in July, and the main question is what will happen to the EU budget and the cohesion funds beyond 2020 when Britain is no longer a member of the EU. As he said, they do not believe that these funds would be done away with altogether, but funding will change. He took the view that funds will be available, but there will be a new system with central distribution, similar to the Juncker development fund, from which „it is well worth checking out” how many Central-European countries received grants.
He highlighted that EU disbursements account for some HUF 2,000-2,500 billion annually of the Hungarian gross domestic product (GDP) amounting to between HUF 33,000-35,000 billion per annum. These funds had strategic significance from the respect of the development of the Hungarian economy, at all times subject to the state of the economy, he pointed out. Hungary primarily benefited from these resources in respect of the consolidation of state finances and the restoration of a state of financial balance, and as a result, investor trust has increased and the country’s exposure has decreased, he said, adding that the Hungarian budget is now able to carry out developments also from its own resources.
He stressed that these funds are not a gift: Hungary opened its market, and in return for this it was given a possibility to catch up with its western counterparts. However, this possibility was tied to a „clearly definable” ideological objective which, in the EU’s opinion, promotes European competitiveness. According to the Minister heading the Prime Minister’s Office, Hungary is a victim of shameful double standards: while Austria is praised because it implements measures „which trample on European law” through the restoration of border controls, Hungary is condemned for observing the Schengen regulations at the Hungarian-Serbian border. Migration has been the only issue determining the future of the European Union in recent years on which positions have not moved „an inch” closer between Hungary and the European Commission. On a great many other issues, after the initial overheated debates, we managed to come to rational compromises after 2010, he remarked.
According to Hungary’s position, migration must be stopped and placed under control, while the European majority seeks to organise it. He took the view that this debate will determine the next year as it is the goal of the Commission to force Hungary in the summer of 2017, even with legal means, to take back refugees and to organise a more liberal border entry regime. European socialists „have taken it upon themselves” to try to force Hungary to the periphery of the European Union, Mr Lázár stated.
He said: as one of the consequences of Brexit, European conservatives “have become paralysed”, while the socialists have ready answers regarding what should happen to the EU after Britain’s departure: “they would like socialism”. He remarked that the European socialists would like to see States which think in terms of the representation of national interests and sovereignty “being chastened, brought to their knees” or forced out.
The big debate of the period to come will be about whether the Member States will be able to better contribute to the future of the European Union by surrendering further powers, such as taxation and supply systems, or by exercising them more effectively. The Hungarian position has been consistent ever since 2010: there is no need or scope for surrendering further powers because it helps the country’s competitiveness if these issues remain within Member State competence, Mr Lázár said.