Positive prospects? This is what Hungary could look like in 2030

The Equilibrium Institute (Egyensúly Intézet), Hungary’s independent think-tank, organised a conference entitled “Hungary 2030”. Among other issues, they discussed Hungarian policy, the future of the economy, energy policy and digital infrastructure.

A place for public policy in Hungary

The opening speech was given by Tamás Boros, Director of the Institute, Index reports. It was followed by speeches by Tibor Navracsics, Minister for the Use of EU Funds and Spatial Development, and Gergely Karácsony, Mayor of Budapest. The event was attended by embassy staff from more than thirty countries and more than eighty business leaders.

Mr Boros stressed that they at the Institute believe that “there is a place for public policy alongside power politics, and there is a chance for political and professional dialogue in Hungary alongside power competition”.

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“International champions”

Tamás Boros also pointed out that international champions play an important role in strengthening the Hungarian economy. International champions are those Hungarian, privately-owned companies that are able to strengthen their position in a competitive environment abroad. In some cases, they can become regional market leaders.

“Hungary cannot permanently break out of the middle-income trap if it does not have many of these international champions,” the analyst pointed out. He added that 64 of the 500 largest Central and Eastern European companies are Hungarian.

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Energy and climate-focused transition

On the energy transition, Tamás Boros said, “[t]here are few issues more complex than energy policy. It is often simplified into political slogans, but it is also a security policy, security of supply, sovereignty, climate policy and social policy issue.”

He also stressed that the cheapest energy is energy that is not consumed. Thus, we need to talk not only about where we get our energy from, but also about how to consume less. In his view, it is inevitable that an iron curtain will once again descend on Europe: an energy iron curtain. On digitalisation, Mr Boros said that the country is doing well, especially in terms of digital infrastructure, internet access and internet speed.

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Budapest is the engine of the country

Tibor Navracsics said that although Hungary does not have the highest catching-up rate, the country is slowly catching up in terms of GDP statistics. He said that if Budapest can succeed, the whole country can succeed. Mr Navracsics also mentioned the employment rate, saying that after 2010, Hungary has been able to improve its position a lot. However, “the picture is not so good in terms of average gross earnings”.

There is also variation in average earnings across the country, with higher average earnings in the central and north-western parts of the country. However, there is a trend for earnings to rise in the east and south.

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The happiness index is highly important

According to Tibor Navracsics, one of the most important data for 2030 is the happiness index: “If we really want to be among the five most liveable Member States of the European Union by 2030, only part of the task is to achieve improvements in material goods and indicators. Perhaps one of the riskiest undertakings is to achieve improvements in the happiness index.”

According to Mr Navracsics, all Hungary has to do is to follow the seventeen UN Sustainable Development Goals (SDGs). These include the eradication of poverty and hunger, health and well-being, quality education, decent work and economic growth, and responsible consumption and production.