Europe’s prosperity has always been rooted in its openness, connectivity, and ability to reach consensus. These principles have driven our continent’s competitiveness and influence in the world. As Hungary held the rotating presidency of the Council of the European Union, we focused on maintaining these values despite significant challenges. The new European Commission took office only in December, and the European Parliament remained in a period of adjustment following the elections. Despite this, we achieved results that laid the foundation for Europe’s future progress.
A key accomplishment of our presidency was securing agreement on next year’s budget, an outcome that was far from guaranteed. More importantly, following the European Political Community summit in Budapest, we successfully facilitated the adoption of a competitiveness pact at the informal European Council meeting. This pact marks a crucial step toward addressing the challenges Europe faces in maintaining its global economic standing.
Our approach to competitiveness rejects further centralization or the creation of a “United States of Europe.” Instead, we emphasize the importance of diversity within the Union. Each region possesses unique talents and capabilities that cannot be standardized or subordinated to rigid, overarching policies. Europe’s strength has always come from enabling regions to thrive on their own terms, complemented by policies grounded in consensus.
Recent developments, however, raise concerns about Europe’s direction. The imposition of punitive tariffs on Chinese electric vehicles exemplifies a counterproductive and ideologically driven approach. Such measures threaten Europe’s openness and competitiveness. When the very industries these policies aim to protect—such as German and French car manufacturers—voice their opposition, it is clear the policies are misguided. Protectionist strategies cannot deliver sustainable growth.
The broader implications of isolationist policies are equally troubling. Globally, we see similar trends, particularly in the United States, where a potential second Trump administration is likely to pursue aggressive market protectionism. While Hungary values its close relationship with the U.S. and mutual respect remains a cornerstone of our ties, Europe must avoid a trade conflict that isolates us from global markets. Pragmatism, not ideology, should guide our decisions.
Hungary remains committed to openness. We continue to welcome investments from all parts of the world, whether in production, innovation, or development. These benefit not only our nation but also contribute to Europe’s overall competitiveness and economic growth. Contrary to isolationist narratives, Hungary serves as a testament to how global cooperation strengthens regional and continental progress.
At the same time, Europe faces internal challenges. Over the past decade, the European Commission has gradually encroached on member states’ sovereignty. This has been evident in areas like joint vaccine procurement, gas purchases, and the migration pact. While member states have delegated certain powers to the EU for joint exercise, these do not constitute a surrender of sovereignty. Respecting this balance is essential to maintaining trust and cooperation within the Union.
Hungary’s presidency underscored the importance of resisting overreach and focusing on pragmatic, consensus-based solutions. Whether through promoting regional strengths or fostering external partnerships, Europe must remain open and adaptable to maintain its competitiveness. As we face an uncertain global landscape, preserving Europe’s openness and diversity will ensure its continued success on the world stage.
You can find the full interview with Eurasia Magazine here