Assessing the last six months – what are the achievements of the Hungarian presidency?

On 1 January 2025, Poland was given the opportunity to hold the rotating presidency of the European Union for six months. Hungary had held this position for the previous six months, and now, at the end of this period, we take stock of what was achieved.

During the EU presidency, which started on 1 June 2024, Hungary’s priorities were wide-ranging, covering many policy areas. Addressing the EU’s competitiveness challenges was on the agenda from the very beginning, but the strengthening of the new European defence policy, enlargement policy, the fight against illegal migration, the future formation of cohesion policy, agricultural policy and tackling demographic challenges were also part of the ongoing negotiations. Below is a brief presentation of the results achieved in regard to each priority.

New European Competitiveness Deal – One of the biggest challenges for the European Union and the whole European continent in 2024 was to increase competitiveness and to strengthen and enhance its global competitiveness position. The EU’s economy has faced a number of challenges in recent years, therefore reforms in this area are needed to put the continent and integration back on track. The Hungarian presidency placed particular emphasis on discussions aimed at increasing the EU’s competitiveness, and the goal of reaching a single agreement accepted by all EU member states to this end was set out early on. The agreement, known as the Budapest Declaration, was ratified by EU leaders in the Hungarian capital on 8 November 2024. The document is based on the results of reports such as the Draghi report and the Letta report, which also identified current challenges, economic difficulties and possible solutions. The declaration included, among other things, the renewal of the industrial sector, increasing steps towards a savings, investment and capital union, the simplification of business regulations, defence issues and energy independence. The declaration is one of the outstanding achievements of the Hungarian presidency, as in recent years EU leaders had not managed to adopt a document that puts competitiveness at the forefront in such a way, detailing its challenges and discussing possible solutions.

Strengthening the European defence policy – The growing intensity of constantly emerging international and national conflicts at global level is prompting the EU to address and strengthen the common defence policy as soon as possible. During the Hungarian presidency, this priority was also one of the tasks. In addition to the implementation of the Strategic Compass, which set the main directions for EU defence policy, the six-month presidency placed particular emphasis on strengthening the European defence industrial and technological base, including defence innovation and enhancing defence procurement cooperation between member states. Over the past six months, a number of discussions and consultations focused on the development of the common defence policy.

Consistent and merit-based enlargement policy – Hungary has supported the EU’s enlargement policy goals so far, and during its presidency it also placed emphasis on enabling the Western Balkan countries to make further progress towards joining the integration. As a result of Hungary’s active engagement, two intergovernmental conferences were held with Albania and one with Montenegro. Two clusters were opened with Albanian leaders during the consultations, and accession chapters were closed with Montenegro. Progress was also made on Serbia’s accession to the EU, which is expected to lead to an intergovernmental conference in the first months of 2025, opening another cluster between Serbia and Brussels. In addition to the classical enlargement policy, the accession of Romania and Bulgaria to the Schengen area is another achievement of the Hungarian presidency. The two countries had been negotiating with Brussels for a long time about possible accession, but political interests had so far prevented them from doing so. From 1 January 2025, Romania and Bulgaria have become full members of the Schengen area.

Curbing illegal migration – The migratory pressures that have been affecting Europe for years are not only a challenge for the Union as a whole, but also place a huge burden on individual member states, especially those at the EU’s external borders. In view of this, the Hungarian presidency paid particular attention to the external dimension of migration, including effective cooperation with the third countries concerned, increasing the efficiency of the implementation of returns and innovative solutions regarding the asylum system. In addition, the importance of external border protection and the need for EU funding for border protection were also stressed in the follow-up to the implementation of the annual priorities of the Schengen cycle. Hungary, as co-chair of the Budapest Process dialogue on migration, hosted the 7th Ministerial Conference of the Process in Budapest on 11-12 November 2024. It is the only cooperation to engage in a migration dialogue with the countries of the Silk Road region, which is increasingly important from a migration perspective, with the participation of the European Union. The meeting was attended by representatives from around 50 countries and a number of EU agencies and international organisations. The Ministerial Conference laid the foundations for the next 5 years of the Budapest Process, now in its 31st year, with the adoption of a joint declaration and accompanying call for action. It was agreed to further deepen their cooperation on a number of migration issues, in particular illegal migration and the smuggling of migrants, the fight against human trafficking, and more efficient returns and readmissions. Priorities also include preventing migration flows, strengthening international protection and integration, and combating extremism, racism and xenophobia.

The challenge of the future of cohesion policy – To achieve equality and balance in the EU, it is essential for Europe to reduce disparities in development between regions and to ensure economic, social and territorial cohesion as fully as possible. A well-structured and balanced cohesion policy is the main instrument for achieving this. However, as the 9th Cohesion Report points out, there are still significant disparities in development between member states and even within regions, with more than a quarter of the EU’s population living in regions with a level of development below 75% of the EU average. The catching up of these regions is not only key to unlocking their competitiveness potential, but is also essential for the balanced functioning of the internal market. During the six-month cycle, the map of possible directions for the transformation of cohesion policy was presented several times, in which the Hungarian presidency emphasised the objectives set earlier. The reform of competitiveness and cohesion policy must be implemented together, as there is a lot of overlap between the two areas.

A farmer-centred EU agricultural policy – Over the past six months, the Hungarian Presidency worked to ensure that the Agriculture and Fisheries Council, taking advantage of the institutional transition, provides political guidance to the newly-formed European Commission on formulating the post-2027 rules for EU agricultural policy, in order to create a competitive, crisis-resilient and farmer-friendly European agriculture. Promoting the sustainability of agriculture is a priority, creating a balance between the strategic objectives of the European Green Deal, stabilising agricultural markets and ensuring a fair livelihood for farmers. During the six-month cycle, agricultural policy issues were discussed on a monthly basis. The last Agriculture and Fisheries Council meeting of the Hungarian presidency succeeded in forging an unprecedented unity among EU ministers for a farmer-centred, competitive, crisis-resilient, sustainable and knowledge-based future common agricultural policy. The 27 member states unanimously adopted Council conclusions that will provide the new European Commission, which took office on 1 December, with clear guidelines for future initiatives. An agreement on next year’s maritime fishing quotas was also reached through the mediation of the Hungarian presidency. The Council unanimously endorsed conclusions on a farmer-centred common agricultural policy (CAP) post 2027, setting the course for a competitive, crisis-resilient, sustainable, farmer-friendly and knowledge-based future EU agriculture.

Tackling demographic challenges – The ageing of European societies, the sustainability of social care systems and labour shortages are long-standing and growing challenges facing Europe as a whole, which need to be addressed effectively and as soon as possible. The informal discussions included a number of debates between EU leaders to develop solutions to key issues. One of the last such events, on 2 and 3 December 2024, resulted in the adoption of Council conclusions, some of which relate to possible solutions to demographic challenges. The relevant policy debate covered two main areas: supporting parents to meet today’s pressing demographic challenges and unlocking the untapped potential of young and older generations. The debate provided an opportunity for EU leaders to look at the two issues together and to put on the agenda solutions that had not yet been in focus.

Overall, the Hungarian presidency ended on a positive note. Results were achieved in all areas of the priorities set, with the competitiveness declaration being especially noteworthy. However, in a number of cases, political interests hindered the development of further cooperation, which limited the interests of the EU as a whole rather than the Hungarian presidency. As of 1 January, Poland has continued the presidential cycle along the following priorities: