Strengthening unity for the common prosperity of the EU

Hungary has officially assumed the rotating presidency of the Council of the European Union (EU), for a term that extends until December 31 of this year. With priorities focused on areas that Budapest deems in dire need of significant change, Hungary faces the opportunity to enhance cooperation with fellow member states and international partners, to boost the EU's competitiveness. However, amidst the many EU challenges, Hungary will encounter considerable obstacles during its presidency.

Taking over this position from Belgium, Prime Minister Viktor Orbán’s government will set the weekly agenda and chair ministerial meetings in Budapest. With the slogan "Make Europe Great Again", Hungary bears a significant responsibility in the latter half of this year, as it presides over the EU Council during a time of common challenges.

Hungarian Minister for European Union Affairs János Bóka emphasised, that Hungary's major goal during its EU presidency is to enhance the EU's competitiveness. Budapest aims to establish a new European Competitiveness Pact, within the framework of the European Council. This pact will focus on increasing Europe's competitiveness while also identifying areas needing proactive policies, such as simplifying EU legislation, reducing administrative burdens, reporting obligations affecting European businesses, and perfecting the internal market. According to Minister Bóka, Hungary seeks to establish a truly European Capital Markets Union, strengthen infrastructure and energy connectivity, and create a European industrial policy to achieve the bloc's key goals, such as the green transition.

Challenges Ahead

Assuming the role of presidency, when the bloc faces a series of challenges such as the conflict in Ukraine, the refugee crisis, and the resurgence of far-right movements, following the recent European Parliament elections that could potentially undermine the bloc's strength, Hungary, known for its differences from other EU members, is expected to face difficulties in finding common ground and maintaining a strong commitment to the EU's shared values.

Hungary's relationship with other EU members has experienced ups and downs, exemplified by the EU's decision to withhold approximately 30 billion EUR in funds for Budapest. This action was due to concerns over Hungary's “interference with judicial independence and widespread corruption issues”. In response, Prime Minister Viktor Orbán’s government has vetoed crucial decisions and processes, including negotiations regarding Ukraine and Moldova's accession to the bloc, a 50 billion EUR aid package for Ukraine, and sanctions against Russia. Recently, Budapest has continued obstructing significant EU policies, prompting strong reactions from other member states and even discussions about suspending Hungary's voting rights.

Regarding immigration issues, Hungary has implemented strict policies, leading the European Commission (EC) to take legal action against Hungary at the European Court of Justice (ECJ). The ECJ ruled that Hungary must pay a fine of 200 million EUR for failing to comply with EU asylum regulations, with an additional daily penalty of 1 million EUR for delayed compliance.

Meanwhile, Hungary has taken over the presidency of the EU Council following the EP elections, during which EU institutions are focused on allocating political positions and structuring the new European Commission (EC). Péter Krekó the executive director of Political Capital, a Budapest-based independent think tank, assessed that Hungary's presidency is unlikely to significantly impact the bloc's overall agenda, even amidst escalating disagreements between Hungary and EU institutions. There is also concern that Prime Minister Viktor Orbán's centre-right government could seize the opportunity to influence efforts to unite the right wing, following their increased strength in the recent European Parliament elections. Hungarian Prime Minister Viktor Orbán has intended to establish a new alliance within the EP, alongside Austria's far-right Freedom Party (FPOe) and the centrist ANO of former Czech Republic Prime Minister Andrej Babis. When discussing this idea, Viktor Orbán mentioned three things Europeans desire: peace, order, and development, yet they received war, migration issues, and stagnation from Brussels politics.

Belief in the ability to navigate change

Despite doubts about Hungary's role, the country declares its commitment to serve peace and security, and to seek genuine solutions for EU issues. However, this has been controversial, as EU member states have not agreed on funding methods for joint defence projects. EC’s President Ursula von der Leyen proposed increased investment in development and joint procurement of military equipment to reduce the EU's dependence on US weapons and create an internal market for the European defence industry. While France supports using Eurobonds to finance defence investments, some countries, including Germany, oppose this notion. Meanwhile, Estonian Prime Minister Kaja Kallas has suggested a plan to invest 100 billion EUR in defence, funded through common debt. European Commissioner Thierry Breton also supported this plan.

With its presidential logo symbolised by a stylised Rubik's cube formed by 27 elements representing the EU's member states, the EU Council Presidency aims to demonstrate Hungary's ability to navigate consensus in this pivotal role to strengthen unity for the bloc's common development.

Despite concerns, international analysts believe Hungary's tenure may not face too many hurdles with the EU, as Prime Minister Viktor Orbán understands that Hungary's actions could determine the fate of the EU's 19 billion EUR fund earmarked for Budapest, currently frozen due to issues related to immigration policy, corruption in public procurement, etc. In the abnormal conditions as Europe confronts shared challenges, such as ongoing conflicts in Hungary's neighbouring area, the separation from global competitors, vulnerable security situations, illegal migration, natural disasters, climate change impacts, and demographic issues, Hungary must make greater efforts to improve relations with member states and enhance its reputation and role within the bloc. Hungary has identified seven priorities, including enhancing EU competitiveness, developing the European defence industry, promoting defence procurement cooperation among EU member states, protecting the EU's external borders, supporting the EU’s farmer-centred agricultural policies, resolving future EU expansion issues, and addressing demographic challenges in Europe.

NDO