Finance Minister Mihály Varga said Europe's role in the global economy has declined significantly in recent decades, and the continent is losing ground to its global competitors.
Speaking at a meeting of Macroeconomic Dialogue at the Political Level (MEDPOL) in Brussels on Monday, Minister Varga said Europe's increasingly serious challenges call for urgent and effective solutions.
Chairing the meeting representing the Hungarian presidency of the Council of the European Union, the minister underscored the need to support families with children and households.
He said there was an ongoing debate as to which areas the policy measures addressing the EU's competitiveness challenges should focus on.
The Hungarian presidency, he said, believed the key areas were real wage growth, productivity, boosting investments and making use of the opportunities presented by the digital revolution. Varga said the aging European population, declining birth rates and the difficulties burdening the welfare system were all problems that could be addressed by supporting families with children and households.
The minister said Hungary was setting a good example in this area, pointing out that it has introduced the broadest family support system in Europe and planned to expand it further next year.
Varga said participants at the MEDPOL meeting had discussed the various options. The meeting was also attended by European Central Bank President Christine Lagarde and Ecofin Director-General Thomas Westphal.