The Oeconomus Economic Research Foundation and the Center for Fundamental Rights held a joint conference on Monday titled “Hungary’s 20 Years in the European Union” to mark the 20th anniversary of Hungary’s EU accession and the upcoming European Parliament elections. The conference was attended by domestic state leaders, decision-makers, and experts, as well as researchers from international organizations from Poland, Slovakia, Croatia, and Spain.
“The question signals a pursuit of peace and consensus,” said Gergely Gulyás, the Minister of Prime Minister’s Office, in his opening speech. He pointed out that “Hungary still pursues a clear and firm policy.” He added, “We believe that laws must be followed.” If the respect for law is not restored in Europe, “it will be very difficult to keep the European Union united in the long run.” Gulyás noted that Brussels is not working to unite member states but to tear apart the unity that once existed, unjustly sanctioning certain states. He also commented on the ongoing conflict in our neighboring country: “The Russian-Ukrainian war is currently the world’s most dangerous conflict. The EU is unable to follow its own interests and imposes sanctions that no one else does.” Regarding the EU’s current state, he said that, compared to other major global players like the United States and China, Europe is far behind in the competition.
“We believe that as EU members, we can be stronger together than separately and can remain who we are. In the 21st century, in such an environment, we can prove the survival and functioning of nation-states, but we will not give up our sovereignty,” said János Bóka. The Minister for European Union Affairs pointed out that the Union’s failures stemmed from the fact that Brussels’ institutions, which are inherently political, set the direction. The poor decisions of recent years are due to the fact that the European Union is currently led by an unsuitable structure and incompetent leaders.
On the main question of the conference, “What has Brussels given us?”, Péter Törcsi, Chairman of the Board of the Oeconomus Economic Research Foundation, stated, “Much more than we think.” He cited as an example the fact that real wages have doubled in countries that joined in 2004, while poverty has decreased by half. Not only has the region developed, but it has also contributed to the Union’s development. However, he pointed out that despite significant economic and trade achievements, politically, socially, and sociologically, both the EU and Hungary have not strengthened, but rather experienced disintegration. “This is not the European Union we wanted; political division harms the Union in every way,” Törcsi said, adding that, although he doesn’t expect a complete turnaround, he does anticipate a shift in the upcoming European Parliament elections.
Hungary’s 20 Years in the European Union and Future Perspectives
“There was no alternative; Hungary belonged in the EU, and it has benefited from the accession, but the issue is that over the last five years, this project has gone astray,” said Enikő Győri. The Member of the European Parliament (MEP) emphasized that EU federalization efforts have always existed, but now the question is how to handle them. She noted the disparity in expected global economic growth this year: the U.S. economy is expected to grow by 2.1%, China’s by 4.6%, the sanctioned Russian economy by 2.6%, while the EU’s economy will grow by only about 1%. She added that over the past ten years, Hungary’s growth has lagged behind the U.S. in seven of those years, the value of investments outside the Union has decreased by two-thirds, and no EU countries are among the world’s top 20 companies. She believes that Europe cannot be united unless it has a well-functioning capital market.
“We belong in the EU, but the experience of the last twenty years has shown that not everything that glitters is gold,” said Ernő Schaller-Baross, a Member of the European Parliament. He pointed out that Hungary joined the Union with the expectation that it would be a community of 27 sovereign states, each with a separate voice. He argued that the excessive centralization and federalization efforts are harmful. He further stated that the current geopolitical situation is hindering the EU economically and socially. The EU is purchasing expensive energy sources, and its competitiveness continues to decline. Another fundamental issue, according to him, is the low birth rate. He acknowledged that it is good that people are living better lives, but societies need more than that. “We work every day so that our children and grandchildren can live and speak Hungarian in Europe,” he added.
Szabolcs Pásztor, Research Director of Oeconomus, highlighted that 80-90% of Hungary’s exports go to the EU’s internal markets. He said the EU integration was initially successful because it was based on businesses and market-oriented. He pointed out that the EU’s expansions were crucial, as they boosted the economy. It is concerning that in recent years, economic issues have not dominated. Another major problem is the excessive regulation within the EU, where the approach is not aimed at improving competitiveness. He urged that ideological and geopolitical debates should not overshadow the focus on economic issues, as they significantly affect competitiveness. He expressed hope that trends will reverse, integration will strengthen, and Europe will recover from its struggles.
Central and Eastern Europe in the European Union
During the second panel of the conference, participants agreed that EU membership brings significant benefits for Poland, Croatia, Spain, and Slovakia. Cohesion funds, the internal free market, and increased competitiveness are key advantages for these member states.
Marta Roels, a researcher at the Warsaw Enterprise Institute, believed that Ukraine’s EU membership would benefit Central and Eastern European member states, bringing more attention to the region. She highlighted that 90% of Foreign Direct Investment (FDI) to Poland, 55% of Polish imports, and 75% of its exports come from or go to the EU. She also pointed out that Western European large member states, particularly France, are extremely wary of cheap Eastern European labor but are more welcoming to migrants from the Middle East and Africa with greater cultural differences.
Croatia, the most recent country to join the Union, has quickly caught up and now has a vibrant economy and is a developing member state, said Natko Vlahovic, Founder and Director of New Frontier Foundation. He added that the hope among Croats that “everything would be solved in Brussels” has dissipated. However, the majority of Croatia’s population remains EU-friendly. Vlahovic argued that it is important for the EU to strengthen its role in international politics and not waste energy creating tensions between member states by imposing the ideologies of larger states on smaller ones. He also emphasized that Croatia has understood and built the institutions and bureaucracy necessary for successful EU membership, which helped them adopt the euro, although he acknowledged that this has both advantages and disadvantages.
Marek Novák recalled that Slovakia faced several challenges during its EU accession, including dealing with the political and institutional issues arising from the breakup of Czechoslovakia and implementing economic shock therapy. The organizer of the Conservative Forum in Slovakia noted that Slovakia successfully overcame these challenges and, between 2000 and 2006, was the economic tiger of Central Europe due to significant economic growth. He highlighted that the European Union should focus on improving economic competitiveness and success rather than imposing political views. He also questioned whether Slovakia’s decision to adopt the euro was worthwhile.
Spain joined the European Community in 1986, well before the other three countries, and its accession was considered a civilizational mission for every Spanish person, recalled Rodrigo Ballester, Head of the MCC European Studies Workshop. He added that Spain received more support from the EU during its accession than the Central and Eastern European states that joined in 2004. He believes that Western European member states behave arbitrarily toward smaller ones, citing Hungary’s exclusion from the Erasmus and Horizon Europe programs as an example.
Attempts at Centralization in the EU
The third part of the conference discussed negative political trends within the EU, moderated by Péter Törcsi. He pointed out that 79% of the populations of the ten countries that joined the EU in 2004 still believe that their countries have benefited from membership. However, in the last 10-15 years, the EU has done everything to make these new member states less favorable toward the Union.
“They haven’t even been effective enough in dampening citizens’ happiness,” commented Balázs Dobos, Research Director at Makronóm, who recalled that Hungary, with its EU accession, had returned to the European Christian cultural circle. However, he believes that in the past 10-15 years, the EU has done everything to suppress this happiness. European decision-makers have forgotten one of the EU’s founding principles: subsidiarity. He believes that the EU’s competitiveness has deteriorated not only due to external factors but also because of aggressive green policies and ignoring geopolitical realities.
During the decision to join the EU, many in Central and Eastern Europe expected an external solution. Hungarians believed they were joining an empire that they voluntarily wanted to be a part of, in contrast to past disappointments. Their expectations were for economic support and solutions to past problems, with hopes of following in the footsteps of Austria and Germany. However, these hopes came with sacrifices, such as the closure of Hungarian sugar factories, said István Kovács, Strategic Director at the Center for Fundamental Rights. He added that the 2008 financial crisis showed that it is no longer possible to measure the benefits and drawbacks purely on an economic basis. The ongoing crisis, compounded by new challenges like migration and COVID-19, has worsened. The EU has mishandled these challenges, instead using them to increase its political power.
In the early 1990s, when Hungary’s EU accession was discussed, decision-makers envisioned a strong, developing Europe. The goal was to join a dynamic community. However, since then, Western living standards have declined, while the East has grown, explained Zoltán Kiszelly, Political Analysis Director at Századvég. He believes, “We will meet somewhere in the middle.” He argued that the EU, dominated by Germany, is becoming a political union fully subordinated to U.S. interests. He claims that Brussels is increasingly led by ideological considerations rather than economic ones, which does not serve the interests of European citizens and member states.
Closing Remarks
Bánk Levente Boros, Deputy Director of the Nézőpont Institute and Political Analysis Director, noted that the question now is who will win the 21st century. In the 1990s, the elite envisioned an independent Europe, but today, this has been subordinated to American grand strategy. This includes efforts to separate Germany from Russia in terms of energy, and the entire continent from China. He believes Europe will become a “museum” and that, according to current forecasts, by 2030, only one country in the world’s top ten wealthiest nations in terms of purchasing power parity will be Germany. The expert pointed out that Hungary offers an alternative with its Eastern opening and peace-oriented policies.
The experts agreed on this point: Kovács István argued that Hungary “may remain a local exception.” Kiszelly Zoltán reinforced this view, noting that Hungary is currently “making Chinese batteries for German luxury cars with Russian energy.”
The conference concluded with a speech from Zsigmond Barna Pál, the Deputy Minister for European Union Affairs. He emphasized that the greatest question facing Europe today is whether there will be war or peace. He noted it is strange that discussions of ceasefires and peace are possible in conflicts like Gaza, but not in the Ukraine war. He pointed out that Hungary’s 2011 presidency was successful and that the government is preparing for the next presidency, relying on past experiences. Charles Michel, President of the European Council, also acknowledged Hungary’s calm and confident leadership during its presidency, he noted. The Deputy Minister concluded by emphasizing that under Hungary’s presidency, everything would be done to restore peace and security in Europe, as that is the Hungarian government’s clear and unified position. This is also the original intention of the Union’s founding fathers, and this is what European citizens expect today.
