On Thursday, May 23, the Oeconomus Economic Research Foundation and the Kopp Mária Institute for Population and Families (KINCS) organized a joint workshop conference titled “Demography and Competitiveness in the European Union.“ During the event, we presented a new publication developed through our collaboration, which explores the connections between demographic processes and competitiveness across 13 chapters. The publication provides detailed data on topics such as fertility and marriage rates, birth rates, old-age dependency, labor market conditions, and female employment.
“The stakes for the next century are nothing less than the survival of Europe.”
In her opening remarks, Dr. Ágnes Hornung, State Secretary for Families at the Ministry of Culture and Innovation, emphasized Europe’s significant demographic challenges, noting that fewer children are being born each year. She said, “Without families, there is no national future, and no economic agency.” Dr. Hornung added that if this trend continues, “our culture will cease to exist, and our shared values will vanish.” One of the main goals of family policy since 2010 has been to prevent this threat. The Hungarian government launched its family-friendly policies to contribute to increasing the well-being of families and to provide opportunities for every family member to thrive.
“Where there are children, there is a future,” said Miklós Panyi, Parliamentary and Strategic State Secretary of the Prime Minister’s Office, who added in a video message that the number of children and a strong middle class are not only economic and competitiveness issues but also have national security dimensions. He pointed out that, although Hungary faces unwarranted accusations and attacks from the EU, the country defends Europe by preserving and protecting Europe’s Christian cultural heritage. The survival of Europe is at stake, which is why, during the upcoming EU presidency, they aim to open Europe’s eyes to seek real solutions to the continent’s critical questions, including demographic challenges.
“The EU is in decline, but the Hungarian model is a good example of how this can be changed,” said Tünde Fűrész, President of KINCS, noting that the EU’s population makes up barely 5% of the world’s 8 billion people. Less than 4 million children are born annually in the EU, with one-fifth of them having mothers from outside Europe. Fűrész highlighted that European society is aging, with elderly people now outnumbering children by one and a half times. However, the “Hungarian model” is successful: both the birth rate and employment rate are increasing, which is essential for competitiveness. Hungary is improving its economic situation by relying on internal resources, and in a work- and family-based society, supporting families is a public duty and an investment in the future.
Dr. Péter Törcsi, Chairman of the Oeconomus Foundation’s Board of Trustees, explained that Western Europe is attempting to address its demographic problems by raising the retirement age, encouraging young people to enter the workforce earlier, and mass migration. In contrast, the “Hungarian solution” focuses on family policy measures, and positive trends are already visible. He emphasized that Hungarian family policy is now widely acknowledged and highly valued. “This is the path we should continue to follow.” He expressed hope that, as a result of the European Parliament elections, pro-family forces would have a stronger representation, which could trigger positive changes in both demographics and competitiveness across Europe.
The Impact of Demographic Processes on Competitiveness
At the conference, the KINCS and Oeconomus’ analysts and experts presented the publication “Demography and Competitiveness in the European Union,“ explaining the ongoing demographic processes and their impact on competitiveness. Over the past decades, birth rates have been decreasing alarmingly, while life expectancy at birth is growing rapidly. The competitiveness of aging or aged societies is negatively influenced by the decline of the working-age population, the increasing old-age dependency ratio, and the growing healthcare and social costs, along with unsustainable pension systems. Developed nations, including EU countries, are currently seeking solutions to these challenges.
After the presentation of the publication, a policy roundtable discussion took place, featuring Deputy State Secretary for European Policy, Dr. Balázs Péter Molnár, Deputy State Secretary for Strategic Affairs, Dr. Ádám Csepeti, Deputy State Secretary for Family Affairs, Dr. Attila Beneda, and Strategic Director of the Oeconomus Economic Research Foundation, István Loránd Szakáli. The discussion focused on the significance of Hungary’s upcoming EU presidency.
