Today’s European Union faces a challenge that threatens its very survival – the erosion of competitiveness. As Hungary takes on the rotating presidency of the Council of the European Union for the second time, it is crucial to address this pressing issue and pave the way for a more competitive Europe.
- Misguided Decisions in Brussels:
The decline in the EU’s competitiveness can be attributed to decisions made in Brussels that do not align with the realities of the global economy. For instance, the green transition has been imposed without sufficient consultation with industry stakeholders. This has led to higher energy prices and a loss of competitive edge for European companies. - Economic Challenges Across Sectors:
From farmers facing rising production costs due to complex green obligations to businesses burdened by heavy tax regulations, various sectors are feeling the impact of the EU’s misguided policies. Additionally, the OECD’s global minimum corporate tax has not been fully adopted by key competitors like the US, China, and India, further hindering Europe’s attractiveness as an investment destination. -
The Path to Economic Success:
Hungary’s experience highlights the importance of competition and a business-friendly environment in achieving economic success. By implementing policies like a flat personal income tax and maintaining a low corporate tax rate, Hungary has attracted record FDI inflow. Diversifying trade relationships and focusing on partnership with industrial players in the Asia-Pacific region have also contributed to Hungary’s economic growth. -
Collaborative Strategies for Competitiveness:
The key to restoring Europe’s competitiveness lies in collaboration and innovation. By working with industrial stakeholders on a new green industrial strategy and negotiating a new competitiveness deal, Europe can relaunch economic expansion. Ensuring a business-friendly environment, protecting external borders, and shaping the future of cohesion policy are crucial steps towards achieving greater convergence among regions and establishing a farmer-oriented EU agricultural policy.
Let’s Make Europe Competitive Again:
It is time to set aside ideological differences and prioritize Europe’s competitiveness. By focusing on fostering competition, innovation, and collaboration, we can ensure a brighter economic future for all member states. As Hungary gears up for an active EU presidency, let us join hands in making Europe competitive once more.
