On July 1, 2024, Hungary succeeded Belgium as the six-monthly Presidency of the European Union Council. At a press conference on June 18 ,2024 Hungary's Minister for the EU, János Bóka, presented Hungary's policies during its presidency under the slogan “Make Europe Great Again”. The Hungarian Presidency of the Council of the EU coincides with a transitional period in which a new EP and Commission structure is being created. Although the main rhetoric of the presidency is “guaranteeing peace and security in Europe”, the most important priority seems to be “increasing the continent's competitiveness”.

Country Profile: Hungary

Hungary, under communist rule from the end of the Second World War until 1990, when the first democratic elections were held, became an EU member on May 1, 2004. Hungary has been part of the Schengen Area since December 21, 2007 but is not in the Euro Area, and it uses the Forint (HUF) as its currency.

Located in Central Europe and landlocked, Hungary shares borders with Slovakia and Austria to the north, Ukraine and Romania to the east, Slovenia to the west, and Croatia and Serbia to the south. With a population of 10 million, Hungary is predominantly Catholic (60%), followed by Protestant (25%) and Orthodox (3%) communities. Additionally, there are small communities of Muslims and Jews in the country.

Hungary has an export-oriented economy that is highly integrated into European supply chains. The country specialises in the production of vehicles, electronics, and machinery. A significant portion of Hungary's imports (68.4%) and exports (78.4%) are conducted with EU member states. Russia is a notable source of Hungary's imports, particularly in the energy sector. China also is increasingly becoming an important trading partner for Hungary.

The Main Priorities Set Out by the Hungarian EU Presidency

1) New European Competitiveness Deal

The priority in the programme for the Hungarian Presidency of the Council of the EU is to increase the competitiveness of the EU. In the current international system, where Europe is lagging its global competitors and facing multiple crises, it is recognised that it is in the common interest of all Member States to address the effects of high inflation, rising public debt, high energy prices, fragmentation of international supply chains, low productivity, and slow economic growth. The goal is to put the EU economy back on an upward trajectory. In this context, it is emphasised that increasing the productivity and competitiveness of the EU and its Member States and stimulating growth is vital for the future of Europe.

The main objective of the Hungarian Presidency is to contribute to developing of a technology-independent industrial strategy, a system for increasing productivity in Europe, an open economy and international economic cooperation, and a flexible labour market in Europe that creates secure jobs and offers rising wages. In this direction, the adoption of a New European Competitiveness Deal, which aims to restore economic development, create conditions for sustainable growth, deepen the Single Market, support SMEs, promote twin transformation, and increase employment stability, will be the main priority of the Hungarian Presidency.

2) The reinforcement of European defence policy

It is underlined in the programme that conflicts in Europe and around the world have demonstrated that the EU needs to seriously improve its defence capability and international crisis management capacity. It is stressed that the defence policy should go beyond “alliances and cooperation” and guarantee the EU's security by strengthening its "resilience" and “capacity to act”. In this context, the Hungarian Presidency, beyond implementing the Strategic Compass outlining the EU defence policy, will pay special attention to strengthening the “European Defence Technological and Industrial Base,” including defence innovation and developing defence procurement cooperation among Member States.

3) A consistent and merit-based enlargement policy

Admitting that enlargement is one of the EU's most successful policies, the programme underlines that to maintain this success, it is necessary to ensure that the enlargement policy is merit-based, balanced, and credible. Under this heading, countries such as Ukraine, Georgia, and Moldova, which have been at the top of the EU enlargement agenda since the outbreak of the Russian-Ukrainian war, are not included. Instead, it is stated that the integration of the Western Balkan countries will bring economic, security, and geopolitical benefits to the EU. Hungary will invite these countries for consultations under the framework of the EU-Western Balkans Summit and the European Political Community.

4) Stemming illegal migration

In the programme, it is pointed out that the “migration pressure” that Europe has been facing in recent years has put a huge burden not only on the EU but also on the Member States located on the external borders of the Union. It is emphasised that to find a solution to this problem, it will be necessary to develop closer cooperation with the countries bordering the EU as well as with the transit countries. In this context, it is underlined that the Hungarian Presidency will pay special attention to the external dimension of migration, including greater cooperation with relevant third countries, more efficient return processes, and innovative solutions to asylum rules.

5) Shaping the future of cohesion policy

Admitting that more than a quarter of EU citizens live in regions that do not reach 75% of the Union's average level of development, the programme underlines that this problem hinders the EU from reaching its full competitiveness potential and the proper functioning of the Single Market. Accordingly, the Hungarian Presidency will aim for a high-level strategic debate on the future of cohesion policy, including its role in addressing demographic challenges as well as in promoting competitiveness and employment.

6) A farmer-oriented EU agricultural policy

In the programme, it is acknowledged that extreme weather conditions caused by climate change, rising input costs, increased imports from third countries and tough production rules have reduced the competitiveness of the agricultural sector. It is emphasised that the long-term guarantee of food sovereignty and food security should be part of the EU's strategic autonomy. Accordingly, the Hungarian Presidency will guide the new Commission in setting the rules for the EU's post-2027 agricultural policy for a competitive, crisis-resilient and farmer-friendly agrarian sector.

7) Addressing demographic challenges

In the programme, Europe's rapid ageing, unsustainable social welfare systems and labour shortages are highlighted as a long-standing and intensifying priority problem that needs to be addressed urgently and effectively across Europe. A direct link is set between these problems and the competitiveness of the EU and the sustainability of public finances. In this context, the Hungarian Presidency will put forward proposals to solve these problems with “full respect” for the competencies of the Member States.

Special Paragraph for Türkiye

Hungary's programme for the Hungarian Presidency of the Council of the EU includes a special paragraph about Türkiye. It is emphasised that Türkiye is an indispensable partner of the EU in many areas, such as energy security, regional security and the fight against illegal migration. It is recognised that the EU has a strategic interest in a stable and secure environment in the Eastern Mediterranean as well as a cooperative and mutually beneficial relationship with Türkiye. It is underlined that Hungary pays great attention to the resumption and progress of comprehensive settlement negotiations with the GCASC. Stating that its aims to support Türkiye's rapprochement to the EU, Hungary stresses the need for the resumption of Association Council meetings and high-level negotiations to promote dialogue. The most important statement in the paragraph is Hungary's declaration that it will “seek to advance the EU-Türkiye political dialogue on Türkiye's status as a candidate country”.

Further information on the programme and the priorities of the Hungarian Presidency of the Council of the EU is available here.