EU presidency – Minister Varga: Finance ministers’ decisions must contribute to building more resilient Europe

Decisions made by European Union finance ministers at Tuesday’s Ecofin meeting should contribute to building a more resilient Europe, Finance Minister Mihály Varga said in Luxembourg.

Varga told journalists ahead of the meeting that the council’s agenda includes implementing the Recovery and Resilience Facility (RRF), providing financial support for Ukraine, and fighting climate change.

Minister Varga said that regarding the RRF, Hungary has only received 8 percent of the funds it was entitled to so far.

As regards the economic impact of the war in Ukraine, the minister said the meeting will cover a 50 billion euro aid package for Ukraine.

He said the council will also reflect on the lessons of the 2024 European Semester package “to ensure a more efficient process in the future.”

Minister Varga said finance ministers are also set to discuss conclusions on climate finance in preparation for the upcoming COP29 summit and the annual meeting of the World Bank Group and the International Monetary Fund in Washington.

At a press conference after the meeting, Varga said the biggest challenge before Europe was the restoration of the EU’s competitiveness. He said member states had made progress on reaching a new European competitiveness agreement that could restart the European economy.

Varga said the EU had fallen behind other continents and the bloc’s competitiveness was at stake. He said a trade war was not the right was to improve competitiveness, adding that Hungary favoured connectivity instead.

He said that as a result of a policy leading to blocs forming in the world economy, the EU’s competitiveness has fallen to one-fifth of that of the US and a tenth of China’s.

Hungarian minister said European financial markets must be boosted to fully improve competitiveness. That will hinge on making European financial markets more effective. Resources must be channeled into economic development and investment.

Varga said that

Hungary, the European Council’s president, is working to coordinate that development.

He said Hungary had staked its bets on economic neutrality and remained open to Western and Eastern markets. “Accordingly, we are opposed to the tariffs the EU is slapping on the imports of Chinese e-cars.”

Regarding the aid for Ukraine, Varga said Hungary insisted on close supervision of those resources.

Meanwhile, Varga called on the EC to speed up the disbursement of the post-Covid Reconstruction and Resilience Facility’s resources. Four years after the pandemic, Hungary has only received 8 percent of the funds, he added.

“That shows that the EU’s lack of competitiveness is rooted in bureaucracy and sluggish Brussels administration,” he said.

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