A (perhaps needed) introduction
And here we are again, with our bi-annual Opinion about the change of Presidency to the Council of the European Union. From July 1, 2024, to December 31, 2024, Hungary will hold the rotating Presidency, marking their second time since joining the EU in 2004.
As we know, the Council’s Presidency involves critical responsibilities. Hungary will organise and chair meetings at every level within the Council, ensure legislative processes run smoothly, and represent the Council in its relations with other EU institutions, such as the Commission and the Parliament.
Legitimately, questions may arise regarding the political implications of this Presidency. Given Hungary’s recent actions – such as its resistance to certain sanctions against Russia, hesitance in providing military aid to Ukraine, and controversial domestic policies – there may be understandable concerns about how Hungary will navigate its role. The choice of the slogan “Make Europe Great Again,” echoing former U.S. President Donald Trump, adds to the speculation about Hungary’s intentions and approach.
Despite these concerns, reports from Brussels indicate a concerted effort by Hungarian officials to ensure a smooth and effective Presidency and demonstrate its commitment to the EU. As a business organisation, we choose to trust these efforts and focus on the substance of Hungary’s planned contributions and initiatives during its term.
HUNGARY’S POLITICAL PRIORITIES
According to the Presidency’s programme, strengthening family policies to tackle demographic challenges will be emphasized, with a focus on family support over migration. EU enlargement is also a focus, with efforts aimed in particular at integrating the Western Balkans into the Union. The Presidency has also committed to driving economic cohesion and competitiveness through innovation and green growth initiatives. Plans also include enhancing border protection while ensuring humanitarian responsibilities are upheld, striking a balance between security and compassion. In support of farmers and rural communities, the Presidency’s agenda includes a focus on sustainable agriculture, alongside improvements in social security and healthcare systems across the EU. Lastly, the Presidency will advocate for renewable energy and energy efficiency, promoting stable and sustainable energy supplies.
Focusing on the competitiveness agenda
Of course, what excites us the most is the renewed attention to our competitiveness. It cannot longer be hidden that our companies have been trailing behind their global competitors. Improving productivity and, consequently, the competitiveness of the EU, is long overdue. Addressing the impacts of recent economic challenges – high inflation, soaring energy prices, fragmented international supply chains, and lower productivity – is crucial to set the EU economy back on an upward trajectory.
The Hungarian Presidency is determined to prioritise competitiveness across all EU policies with a comprehensive approach. Key initiatives include developing a technology-neutral industrial strategy, enhancing productivity, fostering an open economy, boosting international economic cooperation and a flexible labour market.
A central priority of Hungary’s term is the adoption of a New European Competitiveness Deal, aimed at restoring economic development and promoting sustainable growth. This Deal will focus on deepening the internal market, supporting SMEs, and advancing the green and digital transition.
Hungary will also follow up on the conclusions of Enrico Letta’s report on the future of the internal market and actively engage with Mario Draghi’s upcoming report on EU competitiveness.
Moreover, the Presidency will advocate for a new industrial strategy with broad industry involvement, targeting EU-level interventions to enhance business competitiveness.
What we need
This sounds great. And what do we need? Let’s dive in.
First and foremost, our cherished Single Market. We never tire of repeating that it is the foundation for European industry to compete globally. To maintain this advantage, we need a comprehensive Single Market strategy that removes barriers impeding growth.
We call on the Presidency and Member States to unite for smarter regulation. This involves eliminating obstacles to the free movement of goods, services, capital, and data, while streamlining cross-border procedures. Tackling challenges in the EU standardization system with the private sector’s help is essential. We also ask for consistent enforcement of Single Market rules to prevent uneven application. And, of course, let’s finally reduce reporting requirements for companies by 25%, with clear timelines and regular updates.
Next, let’s turn to our industries. The goal is to boost competitiveness and decarbonize Europe without sacrificing our industrial base. Pairing the Green Deal with an ambitious industrial strategy will allow companies to invest in necessary transformations, attract foreign investments, and tap into public and private resources for the twin transition.
The energy cost gap between the EU and global competitors is a significant hurdle. We need favourable conditions for investment in low-carbon and renewable energy, hydrogen, and electricity, supported by the necessary infrastructure. Ensuring the effectiveness of the CBAM and maintaining free allocations under the ETS system, alongside an efficient export compensation system, is part of this approach. Moreover, simplifying and speeding up industrial permitting processes, along with fostering an innovation-friendly regulatory environment, will support the development of key technologies for decarbonization and ensure a steady supply of critical raw materials.
Finally, Europe cannot afford to turn inward when it comes to external relations and commercial partnerships. Strategic autonomy requires openness. We expect EU leaders to implement existing trade agreements, finalize deals with Mercosur and Mexico, and advance ongoing negotiations. Balancing economic security measures to address risks without harming competitiveness is essential. Strengthening cooperation between public and private sectors for intelligence sharing and ensuring the defence industry has access to finance will help ramp up production and meet European defence needs.
Conclusion
In conclusion, Hungary’s Presidency is poised to be a significant period marked by both challenges and opportunities. Its success will hinge on Hungary’s ability to foster collaboration at both EU and national levels and implement strategic priorities effectively. On our end, we are, as always, ready to collaborate and contribute as much as we can for the success of our companies. Allow us to close this opinion with a joke: let’s MECAT! (Make Europe Competitive Again Together), pun intended.