PM Orban: We Want to Make Europe Great Again

At Friday's informal meeting of EU heads of state and government, leaders accepted a competitiveness pact - known as the Budapest Declaration - put forward by the Hungarian presidency. Following the discussions, PM Viktor Orban announced at a press conference that "we want to make Europe great again."

EC President Ursula von der Leyen, Hungarian PM Viktor Orban and Charles Michel, President of the European Council, in Budapest (Photo: PM's Press Office, Benko Vivien Cher)

Detailing parts of the declaration, he explained that they decided to launch a “simplification revolution” to ease administrative burdens, pledging to drastically reduce reporting obligations by the first half of 2025, as these obligations place a heavy burden on European companies.

He emphasized that urgent measures will be implemented to alleviate high energy prices, adding that they will also define a real industrial policy for the coming period. All participants agreed that by 2030, three percent of Europe’s GDP should be allocated to research and development, PM Orban said.

We will fully realize the capital markets union,

– he stated.

Szólt arról is, hogy az európai emberek megtakarításának összege magasabb, mint az amerikaiak megtakarítása, de az európaiak a pénzüket a bankokban tartják, a bankok pedig „genetikailag” nem alkalmasak arra, hogy a különböző kockázatos high-tech befektetéseket finanszírozzák.

Mr. Orban mentioned that Europeans’ savings exceed those of Americans, but Europeans keep their money in banks, which are “genetically unsuitable” to fund high-risk, high-tech investments. 

So, bank deposits should be shifted to financial funds, he argued, adding that Europeans must be convinced and encouraged to do that, as this would allow for the utilization of these sums to support innovative economic solutions. Steps will be taken in this direction, he indicated.

PM Orban also announced that a decision has been made to establish a European defense industry base.

Hungary's prime minister shared that they also agreed that each new legislative proposal would undergo an assessment, or a “competitiveness test”, to evaluate its impact on the bloc's competitiveness.

He noted that Ms. von der Leyen, along with the members of the Council, also agreed that the European Council would regularly revisit the issue of competitiveness at its meetings.

Mr. Orban expressed optimism about the discussions, saying, “No one here is interested in managing decline; we all want to make Europe great again.”

Now that the Americans have decided to make America great again, there is only one possible European answer: we will make Europe great again,

– he concluded.

Responding to why competitiveness improvements and bureaucracy reduction had not yet been achieved despite being goals under the Lisbon Treaty, Ms. von der Leyen recalled that significant transformations in competitiveness, especially in research and development, have occurred since then. She added that the discussions included an assessment of how various European sectors are performing, considering both strengths and weaknesses. The prime minister emphasized that 

they would simultaneously reduce bureaucracy and reporting requirements and present a joint proposal on this to both the Parliament and the Council.

Regarding future trade discussions with the new American president, Mr. Orban stated that they aim to maintain communication and coordinate on common interests, such as purchasing liquefied natural gas. Ms. von der Leyen emphasized that Europe still imports a considerable amount from Russia, which could be replaced by U.S. supplies. This shift could help in lowering Europe's energy prices, she noted, suggesting that it would be worth discussing this topic, as well as the trade balance issue.

In response to a question, European Council President Charles Michel emphasized that while energy policy remains a national competence within the EU, member states must still collaborate with a view to bringing down prices. He remarked that energy is a tool of sovereignty, and also a strategic issue.

The same goes for financial markets,” he continued, emphasizing that this is also a tool to direct investments toward European innovation. He highlighted the need to free up capacity for economic growth and alluded to Mr. Orban's remarks, who demonstrated with examples that the EU is indeed lagging behind its competitors.

In terms of competitiveness, Mr. Michel argued that the current situation calls for urgent action. Regarding the proposed new financial instruments, he emphasized the importance of solidarity. He noted that mutual trust relies not only on financial aid but also on each country’s commitment to internal reforms.

Ms. von der Leyen emphasized that there's a clear need for more private and public investments, noting that the priorities must first be established.

– There are two ways to fund something at the European level: through new, own resources or contributions to the common budget,” she explained, adding that 

both of these require capital increases.

Commenting on the newly adopted agreement, Mr. Orban remarked that reaching consensus on competitiveness was rather straightforward, because it was a pragmatic issue, not an ideological one. In response to a question, he stated that the goals set in Lisbon are no longer realistic due to the substantial changes that have taken place since then. He framed these goals as leadership issues, asserting that with good leadership, Europe could achieve them, whereas weak leadership would lead to failure.

He also addressed the prior rumors about Hungary’s isolation, alleged unpopularity, the anticipated failure of the summit, and predictions that European leaders would not attend. “The outcome is that they are here, we had good cooperation, and the summit was a success,” he said. The competitiveness pact was adopted, despite earlier skepticism. “We trust each other, and as good leaders, we will achieve the competitiveness goals we have set today,” he declared.

Regarding future ties with the United States, PM Orban predicted tough negotiations. He noted that Donald Trump will surely have specific ideas about how trade should proceed, “obviously guided by American interests.” Europe must stand up for itself, negotiate, and ultimately reach an agreement,

– he stated.

To another question, PM Orban replied that with two months remaining of the Hungarian presidency, this meeting had been a “productive gathering with good results”, adding that that he still has “a few surprises up his sleeve.”

Discussing Ukraine’s financial support, Ms. von der Leyen stated that, in addition to the 50 billion euro fund, G7 loans will also significantly assist Ukraine until 2026. She declared that Russia poses a threat not only to Europe, but also to the global security, aligning increasingly with Iran, North Korea, and China to “fuel this war.” She pointed out that Russia is using Chinese and Iranian technology on the battlefield, which shows that the security of the Pacific region and that of Europe is linked.

Staying on this issue, Mr. Michel stressed that actions must be taken to achieve a just peace, adding that “nothing can be decided about Ukraine without Ukraine.” He warned that signaling weakness to the Kremlin would encourage other regimes to disregard international law, rendering Europe vulnerable.

Addressing the issue of the war, Mr. Orban reiterated Hungary’s position, which has remained unchanged since he first articulated it in March 2022: “Hungary’s stance is clearly pro-peace and pro-Hungarian,” he stated. He recalled that Hungary provided the greatest humanitarian assistance to Ukrainians at the outbreak of the war, providing shelters to hundreds of thousands of refugees, while refusing any involvement in the military conflict.

He emphasized that holding a dissenting opinion “is not isolation; it’s simply a debate.” He added, “Being politically opposed is part of my DNA.” He pointed out that Hungary was initially alone in proposing border security measures to curb migration in 2015. “We were alone, but not isolated, as we were part of the debate,” he stressed.

On a further question about the war, Mr. Orban stated that Ukraine is a sovereign country, and it is up to the Ukrainians to decide if they want to continue the fight.

I'm never trying to dictate to the Ukrainians; it’s their country, their future, their lives. (…) But I am always ready to help them,

– he said. He also recalled that during his visits to Kyiv and Moscow, it became evident that neither side is prepared for a ceasefire, and each believes that time is on their side. The prime minister noted that he has been working to foster an international pro-peace environment, hoping for a ceasefire between the warring sides.