Hungarian Prime Minister Viktor Orbán has issued a stark warning regarding the European Union's (EU) economic performance, stating that Europe risks becoming a 'second-tier economy' as it falls behind rising economic powers in Asia. In a recent speech at Ludovika University in Budapest, Orbán criticized the EU's growth trajectory, citing a report by former European Central Bank (ECB) president Mario Draghi. According to this report, the EU's economic growth has been 'constantly lower' than that of the United States for the past two decades. Orbán compared GDP growth rates, highlighting that the U.S. economy has nearly doubled its initial investment compared to the EU's performance. He emphasized the necessity for European leaders to acknowledge these economic realities to implement effective political strategies. [1475e405]
On October 10, 2024, Orbán further elaborated on the EU's economic struggles, attributing them to the bloc's refusal to purchase Russian energy. He stated that this decision is crippling economic growth, with productivity increasing at a slower rate than competitors and a declining share of world trade. Orbán pointed out that electricity prices in the EU are 2-3 times higher than in the U.S., while natural gas prices are 4-5 times higher. He noted that half of European companies view energy costs as the main obstacle to investment, leading to a 10-15% decline in production within energy-intensive industries. He warned that moving away from Russian energy has endangered GDP growth and that the green transition will not significantly alter fossil fuel reliance until 2030. Since the Ukraine conflict began in February 2022, Russian gas imports have plummeted from 40% in 2021 to over 16% in Q1 2024. [1418fbc1]
In a radio interview on October 18, 2024, Orbán discussed the upcoming Europe Summit in Budapest and emphasized the importance of the U.S. presidential election for Europe. He suggested that if Donald Trump returns to office, it could lead to an end to the Russo-Ukrainian war. Orbán highlighted Hungary's economic strategies and the need for a unique approach to prosperity, warning against Brussels' demands that could harm Hungarian citizens. He noted a prior national consultation where citizens urged the government to curb migration and predicted economic growth of over 3% in 2025, with an average salary of one million forints. [47d6d832]
In addition to his economic critique, Orbán has also advocated for the EU to support Ukraine's peace plan, urging the bloc to engage in direct diplomatic communication with Russia and high-level negotiations with China. This call follows his discussions with former US President Donald Trump, who suggested that if re-elected, he would promote peace talks between Russia and Ukraine. Orbán indicated that the intensity of the military conflict is likely to escalate soon, based on his conversations with leaders from Russia, Ukraine, and China. His diplomatic efforts have drawn criticism from EU allies and NATO, particularly as Hungary currently holds the rotating presidency of the EU Council. [1c0c0d87] [9e14cdda]
Furthermore, Orbán has expressed concerns about the EU's inclination towards forming economic blocs to enhance competitiveness in the global market. He warned that such formations could be detrimental to Hungary, advocating instead for a unified global economy. He stressed the importance of cooperation with like-minded countries to influence EU policy, particularly regarding punitive tariffs on Chinese electric cars, which he noted are opposed by European car manufacturers. [2350f233]