Mrs. Metsola, Mrs. von der Leyen, Honourable Members, Ladies and Gentlemen,
I have come here to sound the alarm. I am following the example of President Draghi and President Macron: the European Union must change, and this is what I want to convince you of today. Hungary is holding the rotating Presidency of the Council of the European Union for the second time since 2011. This is the second time that I personally have taken on this task, and the second time that I have stood before you and presented the programme of the Hungarian Presidency. I have been a Member of Parliament for thirty-four years, so I know what an honour it is to have your attention now. As Prime Minister, it is always an honour to speak before the Parliament’s representatives. I have a basis for comparison: in 2011, during our first Presidency, we also had to deal with crises, with the consequences of the financial crisis, the consequences of the Arab Spring and the Fukushima disaster. Back then we promised a stronger Europe, and we delivered. We also adopted the first European-level Roma strategy and the Danube Strategy. It was under our Presidency that we launched the European Semester – the economic policy coordination process which back then really was what its name suggested. And to date our first Presidency was the last in which the Union successfully concluded an accession process: that of Croatia. And I remind you, all this happened in 2011. It was not easy, but our work is much more difficult today than it was then. It is more difficult because the situation in the EU is much more serious today than it was in 2011 – and perhaps more serious than at any time in the history of the Union. What do we see today? War is raging in Ukraine – in other words in Europe. Serious conflicts in the Middle East and Africa are wreaking destruction and affecting us, and each of these conflicts carries the risk of escalation. The migration crisis has reached proportions not seen since 2015. Illegal migration and security dangers now threaten to tear the Schengen Area apart. And meanwhile Europe is losing its global competitiveness: Mario Draghi says that Europe is threatened with a “slow agony”, and I can quote President Macron, who says that Europe could die because it will be squeezed out of its markets within two or three years.
Honourable Members,
It is clear that the Union is facing decisions that will determine its destiny.
Madam President,
The Presidency is, of course, also an organisational, coordination and administrative task. I can report to the Honourable Members that so far we have held 585 Council working group meetings, chaired 24 ambassadorial meetings, held 8 formal and 12 informal Council meetings, and organised 69 Presidency events in Brussels and 92 in Hungary. At our events in Hungary we have welcomed more than 10,000 guests. I can inform you that the Council’s legislative work is in full swing. We are working on 52 legislative dossiers at various levels of the Council. The Presidency is also ready to start trilogue negotiations with the European Parliament at any time. At the moment we are in trialogues with you on only two legislative dossiers, but there are 41 dossiers for which this is needed; we are waiting for this to happen. I know that there have been elections and we are going through a difficult institutional transition, but it has been four months, and we stand ready to work with you on the 41 dossiers on which consultation is due. The Hungarian Presidency will act as an honest broker and will seek constructive cooperation with all Member States and institutions, while at the same time the Hungarian Presidency will defend the Council’s treaty-based powers – for example with regard to the interinstitutional agreement between the European Parliament and the Commission.
But, Honourable Members, Madam President, the Presidency is not just about administration: the Hungarian Presidency also bears a political responsibility. I have come here to Strasbourg to present to you what the Hungarian Presidency proposes to Europe in this time of crisis. The most important point is that our Union must change. The Hungarian Presidency seeks to be the voice and the catalyst for change. The decisions must be taken not by the Hungarian Presidency, but by the Member States and the institutions of the Union. The Hungarian Presidency will raise issues and make proposals for the peace, security and prosperity of the Union. We are giving the highest priority to the problem of competitiveness. I agree almost completely with the assessment of the situation appearing in the reports of Presidents Letta and Draghi. Briefly, they are the following. Over the past two decades the EU’s economic growth has been consistently slower than that of the United States and China. EU productivity growth is slower than that of its competitors. Our share of world trade is falling. EU companies face electricity prices two to three times higher than in the US, while natural gas prices here are four to five times higher. The European Union has lost significant GDP growth as a result of its decoupling from Russian energy, and has had to reallocate significant financial resources to energy subsidies and the construction of infrastructure for the import of liquefied natural gas. Half of European companies see the cost of energy as the main barrier to investment. Energy-intensive industries, which are important to the EU economy, have seen production fall by 10–15 per cent.
Madam President,
The Hungarian Presidency recommends that we should not delude ourselves into believing that a solution to this problem is offered by the green transition alone. This is not the case. Even if we adopt a positive attitude and start from the assumption that the targets for the deployment of renewable energy sources are met, all analyses show that the proportion of operating hours in which fossil fuels determine energy prices will not fall significantly before 2030. We have to face up to this fact. The European Green Deal was based on creating new green jobs. But the meaning of the initiative will be called into question if decarbonisation leads to a decline in European production and job losses. The automotive industry is one of the most glaring examples of the EU’s lack of planning, an area in which we are applying climate policy without an industrial policy. We are implementing climate policy while we have no industrial policy. Yet the EU has not pursued climate ambitions by encouraging the transformation of the European supply chain, and European companies are therefore losing significant market share. And believe me, if we move towards trade restrictions – and I see plans to do so – we will lose even more market share.
Honourable Members,
I think the main reason for the productivity gap between the European Union and the United States has been digital technology; and it seems that this gap – the distance by which Europe is lagging behind – is growing. As a proportion of GDP, our companies spend half as much on research and development as US companies do. This is accompanied by adverse demographic trends. The figures show that the natural decline in the EU’s population is not being compensated for by migration. In other words, this means that for the first time in Europe’s modern history we are entering a period in which our GDP growth in output will not be supported by a continuous increase in the labour force. This is a huge challenge! Together with Presidents Draghi and Macron, I say that the situation is serious, and demands immediate action. We are in the eleventh hour. In those technologies that are currently considered to be pioneering, it will take a few more years before we see who can survive. Please consider that it is much harder to revive diminishing industrial capacity than it is to preserve it. Lost skills, experience and expertise are very difficult or impossible to replace. I will not try to lull you into thinking that there is an easy or simple solution. These are serious challenges and serious problems. But at the beginning of the institutional cycle I would like to make it clear that in this area Member States expect swift and decisive action from the European institutions. We expect, Member States expect, a reduction in administrative burdens. We expect a reduction in over-regulation. We expect affordable energy. We expect a green industrial policy. We expect the internal market to be strengthened. We expect the Capital Markets Union. And Member States expect broader trade policy: trade policy that, instead of the formation of blocs, increases connectivity.
Madam President,
We have some successes to build on. The European Union’s dynamically developing battery industry is one such success – or so says President Draghi. Public funding for battery technology has increased by an average of 18 per cent over the last decade, and this has been key to strengthening Europe’s position. In terms of patent applications for battery storage technologies, today Europe ranks third behind Japan and South Korea. This is a great improvement. It seems that targeted and strategic intervention can be successful and beneficial for Europe.
Honourable House, Honourable Members,
At an informal sitting of the European Council in Budapest on 8 November, the Hungarian Presidency will seek to adopt a new European competitiveness agreement, a new competitiveness pact. I am convinced that political commitment at the highest level will lend impetus to the turnaround in European competitiveness that we need. I recommend putting this at the heart of the action plan for the institutional cycle ahead.
After competitiveness, allow me to say a few words about the migration crisis. For years Europe has been under migration pressure, which has placed a huge burden on Member States – particularly those on the Union’s external borders. The external borders of the Union must be defended! Defence of the external borders is in the interest of the Union as a whole, and should therefore be supported by the Union. This is not the first time that I have stood here before you, and this is not the first time that I have said this. You have seen that since 2015, Hungary and I personally have been engaged in major political debates on the issue of migration. I have seen many things; I have seen initiatives, packages and proposals that have been received with great hopes, and that have all proved to be unsuccessful. There is a single reason for this. Believe me, we cannot protect Europeans from illegal migration without setting up external hotspots. Once we have let someone in, we will never be able to send that person home again – whether or not they have a legal right to stay. There is only one solution: only those who have been granted prior permission should be allowed to enter the EU, and entry should only be possible with this permission. I am convinced that any other solution is an illusion. Let us not delude ourselves: today the EU asylum system is not working. Illegal migration in Europe has resulted in rising anti-Semitism, violence against women and homophobia. There are many people who protest against this, but I would like to repeat that the facts speak for themselves: illegal migration in Europe has resulted in rising anti-Semitism, violence against women and homophobia. Whether you like it or not, these are the facts. The consequences of a failed migration policy are also clear, with many Member States seeking to create opportunities to opt out of the asylum system.
Honourable Members,
Illegal migration and security fears have led to the sustained and extensive reintroduction of border controls. I think it is time to address this issue at the highest political level, and to discuss whether it is possible to revive the political will to make the Schengen Area really work. The Hungarian Presidency is making this proposal: let us create a system of Schengen summits. Let us convene regular Schengen summits involving the heads of state and government of the Schengen Area. This has already worked once. I remember that an important part of our response to the economic crisis in 2008 was the summit of euro area leaders. It was a successful coordination system, as is also shown by the fact that we institutionalised it in 2012 with an international treaty: this is the Euro Summit. As I see it, the Schengen Area is in a similar crisis today, so we need a similar political commitment here: a Schengen Summit, and then its institutionalisation through an international treaty. Madam President, the Hungarian Presidency is not only proposing that the Schengen Area be strengthened and extended; the Hungarian Presidency is also proposing that Bulgaria and Romania be granted full membership before the end of the year.
Ladies and Gentlemen of the European Parliament,
In addition to migration, Europe is also facing a number of other security challenges, and the appropriate forum to discuss these will be the European Political Community Summit in Budapest on 7 November, two days after the US presidential election.
Madam President,
We must face the fact that, when we talk about European security, today the Union is incapable of guaranteeing its own peace and security. We need the political institutionalisation of European security and defence. The Hungarian Presidency sees strengthening the European defence industry and technology base as one of the best ways of doing this – perhaps the best way. Therefore the Hungarian Presidency is focusing on the European Defence Industrial Strategy and the Defence Industrial Plan. But the challenge is more complex than this, because it involves Member State and EU competences, and even international alliance structures. The Hungarian Presidency can offer its own example, the example of Hungary. We spend around 2.5 per cent of our total national product on defence, a large part of which is development. The vast majority of our defence procurement comes from European defence industry sources, and industrial investments are being made in Hungary in all segments of the defence industry with the participation of European players. If this is possible in Hungary, it is possible throughout the European Union.
Madam President,
Another highlighted theme of the Hungarian Presidency is enlargement. There is agreement that the EU’s enlargement policy must remain merit-based, balanced and credible. The Hungarian Presidency is convinced that a key issue for European security is accelerating the accession of the Western Balkans. The EU benefits from the integration of the region in economic, security and geopolitical terms. We must pay particular attention to Serbia. Without Serbia’s accession, the Balkans cannot be stabilised. Until Serbia is a member of the European Union, the Balkans will remain an unstable region. I would like to inform you, Ladies and Gentlemen, that several candidate countries fulfil the technical conditions for further accession, but among Member States there is a lack of political consensus. Please recall that more than twenty years ago the Union made a promise: we offered the Western Balkan countries the promise of a European future. The Hungarian Presidency believes that it is time to deliver on that promise. What we can do – and have done – is convene the European Union–Western Balkans Summit, at which we would like to make progress.
Allow me to make a comment on European agriculture. We all know that the competitiveness of European agriculture has been severely damaged by extreme climatic conditions, increased costs, imports from third countries, and excessive regulation. Today it is no exaggeration to say that all this is threatening the livelihoods of European farmers. Food production and food security is a strategic issue for all countries, and for the Union. This is why the Hungarian Presidency would like to provide political direction to the incoming European Commission in order to create a competitive, crisis-resistant and farmer-friendly European agricultural sector.
Honourable Members,
In addition to agriculture, the Hungarian Presidency has also initiated a strategic debate on the future of cohesion policy. The discussions are ongoing. As you are no doubt aware, around a quarter of the EU’s population lives in regions with a level of development under 75 per cent of the EU average. It is therefore essential for Europe to reduce the development gap between regions. Cohesion policy is not charity or a hand-out, but is in fact the EU’s biggest investment policy, and a prerequisite for the balanced functioning of the internal market. The Hungarian Presidency believes that its continuation is crucial for preserving the European Union’s competitiveness potential.
Honourable Members, Madam President,
For collective European problems the Hungarian Presidency is seeking solutions that are based on common sense. But we are not only looking for solutions. We Hungarians continue to seek our dreams in the European Union, as a community of free and equal nations, a homeland of nations, a democracy of democracies. We strive for a Europe that fears God and defends people’s dignity, a Europe that aspires to reach the summits of culture, science and the spirit. We are members of the European Union not because of what it is, but because of what it could be. And as long as we believe that we can make Europe what it could be, as long as there is the ghost of a chance of that happening, we will fight for it. We in the Hungarian Presidency have an interest in a successful European Union, and I am convinced that success for our Presidency will be success for the entire European Union. Let’s make Europe great again!
Thank you for your attention.