In twenty years, Hungary received EU funds equivalent to one year’s GDP

Katalin Halmai (Strasbourg);

European Union;

2024-04-24 17:42:00

According to former prime minister Péter Medgyessy, who signed Hungary’s accession treaty in 2004, the two decades of EU membership brought one year of Hungarian GDP.

The largest expansion in the history of the European Union was celebrated on Wednesday by the European Parliament, which is holding its last plenary session this week in Strasbourg. In addition to the current and former leaders of the EU institutions, the then leaders of the countries that joined on May 1, 2004, including Hungarian Prime Minister Péter Medgyessy, took part in the commemoration.

Ten young people born on May 1, 2004 took their seats in the meeting room, who could ask the guests one question each. Péter Medgyessy was asked: what was the most important reason why Hungary became a member of the Union? The former prime minister cited two reasons: on the one hand, Hungarians have always felt that they belong in Europe, and that the leaders fulfilled the will of the people. – We thought that the strengthening of sovereignty could take place within the European Union. A country that is strong is sovereign, and the EU makes Hungary strong – the politician explained the other reason.

After the commemoration, we asked Péter Medgyessy to explain in more detail what he meant by the strengthening of sovereignty within the EU.

– Hungary’s sovereignty can be strengthened through the European Union because stronger and richer countries are better able to protect their sovereignty. It is not very debatable that in the last twenty years Hungary has become richer and people live better, even if we have not used all the opportunities in the Union.

– What did EU membership bring to Hungary?

– We tend to consider only economic aspects. But in addition, enormous opportunities have opened up for young people, who can study abroad, or for employees, who can choose whether to work in Hungary or, for example, Austria. Thanks to the Schengen agreement, the internal borders were opened, helping the free flow of not only people, but also technologies and products. EU membership also brought a lot of money. According to my very approximate calculations, in twenty years, Hungary received EU funds equivalent to one year’s GDP. In other words, if we were outside the Union, people would have had to work a year more to achieve the same result as the current one.

– Has EU membership fulfilled the hopes of twenty years ago?

– Before marriage, one always has dreams and illusions. Then he faces the reality that there are family disputes and, where appropriate, fights.

One year’s GDP came into Hungary, for example. And EU member Hungary attracts foreign investors, which, even if fluctuating, represents a serious force. Opportunities opened up in learning and culture. You can always say that it could have been much better. As in any marriage.

– What didn’t work, for example? The introduction of the euro?

– I was a supporter of the introduction of the euro then, and I still am today. Belonging to the Eurozone disciplines economic policy. The principles and rules are well established, even if they need to be adjusted sometimes. It was a political decision that it didn’t work out. In a country prone to autocracy, the leadership does not always like to be controlled. The euro represents this kind of control. At the same time, quite excellent economists, such as former Central Bank Governor György Surányi, were of the opinion that we should not rush the common currency. And he certainly did not claim this based on political, but economic considerations.

– How does it affect the Hungarian economy if Hungary does not receive a significant part of EU subsidies?

– I consider this a big mistake.

Hungary needs financial support, so it is necessary to agree with the leaders of the European Union on what we can undertake and what we consider to be legitimate intentions, and what we cannot proceed with. Based on this agreement, we should have access to the resources. If we had this money in our pockets, it would be much easier for us to make improvements. See how long you had to wait for teachers’ salaries! This is sinful delay.

– Do you think one of the main reasons for the current problems of the Hungarian economy is that we do not receive EU funds?

– This is a mistake, but the weaknesses of the Hungarian economy are caused by structural problems, economic policy and national banking errors, and competitiveness deficiencies, which could only be mitigated by EU financial resources.