Márton Nagy, National Economy Minister, said Hungary believes in boosting competence and sees this as the European Union's opportunity to rise. Still, the resources necessary for a turnaround are lacking at the EU level.
During a conference evaluating Hungary's EU presidency in Budapest on Monday, Minister Nagy said the EU "must be saved before it dies," as its economy cannot compete with the United States and China under the current circumstances.
It is estimated that EUR 700bn-800bn are missing for investments for the digital and green transition at the EU level, and there will not be enough money as long as financing is limited by fiscal discipline, he said.
There is no need for "fiscal alcoholism," but the EU should reform its financing rules as the initial costs of the digital and green transition are high, and in order to achieve structural transformation, "the money taps must be opened", channelling new funding to the right places. Europe must therefore decide whether it considers competitiveness or deficit targets to be more important, he said.
Instead of investments, the EU was financing the war in Ukraine while the United States and China were continuously investing into industries with high added value, Nagy said.
He said the EU was already lagging behind in artificial intelligence, it may have a future in the space industry, but the automotive industry could be the real breakthrough point. However, there is not a single community directive addressing e-mobility and the electric vehicle market has also stalled in Europe, Nagy said.
The minister said the next six to eight weeks could bring important changes as the change of the US president and the German election could also be of decisive importance from Hungary's perspective.