Hungary And Moldova Have Fostered Excellent Relations

Hungary and Moldova are eager to deepen their collaboration, not just in diplomacy, but also at the economic level. We inquired with the senior researcher at the Hungarian Institute of Foreign Affairs regarding the progress of bilateral relations and Moldova's aspirations for European integration, particularly in the context of the talks of the Moldovan Prime Minister in Budapest.

Orbán Viktor és Moldova miniszterelnökének találkozója Fotó: Koszticsák Szilárd

– While Moldova's constitution upholds neutrality, precluding NATO integration, bilateral economic and political ties have experienced a downturn since the pandemic. Janos T. Barabas further noted that before the pandemic, annual trade between the two countries had already surpassed two hundred million euros.

He recalled that three years ago, Hungary's OTP Bank acquired Moldova's third-largest financial institution, and this collaboration, particularly the loan program for small and medium enterprises, has proven successful since then. However, he acknowledged that there have been political tensions in Moldova-Hungary relations.

Anti-Hungarian sentiment has reared is head in Moldova's public life, and this shift is a consequence of Romania's growing impact on Moldova,

– Mr Barabas noted. 

Regarding Moldova's aspirations for EU integration, the expert emphasized that the European Union harbors a strategic, long-term interest in fortifying Europe's security zone toward the East. This is not only a response to the potential Russian threat but also a consideration due to migration, Mr Barabas added. He clarified that

alongside various security interests, the EU, quite evidently, also seeks a source of inexpensive labor. The allure of the common market makes integration beneficial for all parties in the long run.

Concerning relations between Ukraine and Moldova, he highlighted notable improvements since the onset of the war. Previously, the two countries faced serious disagreements, particularly regarding the distribution of water from the Dniester River and the ownership of certain assets from the Soviet era. Since the war, however, close cooperation has emerged, primarily in the realm of security. Mr Barabas noted that at the beginning of the past year, Ukrainian intelligence services alerted Moldova about potential violent demonstrations in Chisinau, allegedly with Russian support.

The expert also highlighted that the pro-government press has been advocating for the Moldovan government to distance itself from Ukraine in the EU accession process. 

Due to its smaller size, Moldova can more swiftly align with the EU's expectations in this context. Consequently, during the Moldovan Prime Minister's visit to Budapest, he was accompanied by the Minister of Agriculture and the Minister of Interior.

Hungarian President Katalin Novak (r) and Moldovan PM Dorin Recean (l) during a meeting at Gyula Castle's Knights' Hall on January 25, 2024. To the right of Hungary's head of state is Andras Kiraly, director of planning and analysis at the presidential Sandor Palace. (Photo: MTI/Zoltan Mathe) 

The expert clarified that Moldovan agriculture shares close ties with Hungary, emphasizing that a Hungarian company is the most significant seed seller in the Republic of Moldova. Moldova aims to position itself on the European Union market with high-quality agricultural and wine products, intending to differentiate from the challenges faced by Ukrainian agriculture.

Cover photo: Hungarian PM Viktor Orban (r) and Moldovan PM Dorin Recean give a press statement following their meeting at the Carmelite Monastery on January 25, 2024 (Photo: MTI/Szilard Koszticsak)