Speeches

Dear Mr President, The Competitiveness Compass presented by the Commission is a major step forward in the history of European economic policy. This comprehensive package is a clear sign that the European Union has recognised that competitiveness is the foundation of our economic, environmental security and prosperity. However, the document needs to be further developed and refined in a number of areas. The impact of energy prices on competitiveness is a key issue. We have a significant competitive disadvantage in this area. In 2024, European industrial companies operated at two and a half times higher electricity costs than their US competitors. As an example, my country, Hungary, is in a particularly vulnerable situation. Hungarian SMEs are paying the third highest electricity price in the European Union, which severely limits their growth potential. Moreover, the situation is worsened by the fact that the diversification of the Hungarian economy is not satisfactory. In recent years, instead of encouraging innovative investments, the government has unilaterally focused on mega-investments in the automotive and battery industries. This not only poses environmental risks, but also makes the country extremely vulnerable economically. The stagnant Hungarian economy since 2020 is a warning example. It shows the consequences of a country's neglect of energy modernisation and economic diversity. Therefore, it is crucial for Hungary to channel EU funds as soon as possible to improve the business environment of Hungarian small and medium-sized enterprises. The freezing of EU funds further increases the vulnerability of our businesses.

This measure was indeed taken by the Biden government, but what I have referred to is Hungary's separate policy. He hopes for privileged relations with the Hungarian government, the Trump administration, and, for example, the introduction of a possible tariff would affect Hungary as well as the entire European Union. Given that we are part of a customs union, and you are very well aware of that.

Dear Madam President, US AI chip export restrictions could fundamentally jeopardise the functioning of the European single market and the EU's technological sovereignty. The new rules do not treat the European Union as a single market. France, Belgium and Spain will have unrestricted access to U.S. chips, while Poland, Portugal and Greece will only be able to import 50,000 of these vital components per year. This discrimination is particularly acute in Central and Eastern Europe, including my home country, Hungary, where the digital transition and the adaptation of artificial intelligence are already lagging far behind. According to Eurostat data from 2024, the share of enterprises using AI technologies is particularly low in our region, which could further deteriorate due to restrictions and even widen the innovation gap. It is particularly worrying that while the Hungarian government is primarily ideological in its approach to U.S. relations, it is ignoring real economic challenges. This approach is dangerous. The new restrictions raise further concerns about the technological development of Hungarian businesses, which is taking place at a time when our economy is already facing serious challenges. The situation shows that separate travel policy is a dead end in the global technology race. If we want to defend our economic interests in this fragmented world order, we must act together with our European partners. The EU must speak with the US in unison about lifting restrictions, while also developing our own chip production capacities to reduce our external dependence.

Dear Mr President, Our relationship with the United States is a century-old partnership. Together we are the bulwarks of the democratic world and, by the way, we are facing a number of similar challenges. Trump's recipe for America's future is crude, but the problems are real. The world is in transition. While the new US administration aims to strengthen America's global leadership, voices in Europe, especially from the government of Hungary, have intensified, calling for the end of Western-style democracies. This is a good time to look inside and renew our democratic institutions. The EU and the US should strengthen their cooperation. Our interests in joint defence industrial developments, cybersecurity and new technologies coincide. The development of European defence capabilities and a stand-alone European defence industry will benefit both continents. Together, we can also ensure affordable energy for European citizens. In transatlantic economic relations, the emphasis should also be on cooperation and not on trade war. The latter would only strengthen our rivals. The self-renewal capacity of American politics is strengthened by challenges. This is true for Europe and transatlantic relations. And we need to address the challenges in a way that is mutually beneficial for both the EU and the US.

Dear Mr President, I want to show you a hand sign. Why is this important? In August, a special case occurred in Hungary that sheds light on how a simple gesture can save a life. A young woman asked for help from a clothing store salesman with a hand sign suggesting abuse, and the attentive salesman recognized the hand sign. She gathered the courage to signal in silence while the man who had abused her was present. The hand sign consisted of only three simple moves, and it was enough for the shop's seller to notify the authorities, who rescued the woman from her distressed situation. This case underlines that prevention and sensitisation are key. In 2024, the EU adopted new legislation to strengthen gender-based violence both online and offline. This regulation is an important step, but the real change can come from everyday attention and support. Home should be a place of love, care and security, and we are all responsible for ensuring that.

Dear Mr President, The rise of electric cars is an opportunity for the automotive industry to secure Europe's leading innovation potential. However, the rise of Chinese competitors presents a new challenge. While Europe must remain open to fair cooperation with China, the transition must not increase our excessive economic exposure. By contrast, the Hungarian government, which so proudly defends national sovereignty, supports the giant investments of Chinese car and battery factories instead of European companies. These factories often provide worse working conditions than European competitors, the workforce is not local, but mainly Asian, and they put an extreme strain on our environment. Moreover, these so-called "greenfield" investments divert valuable agricultural land from production, which also harms the interests of local farmers. BYD's new Hungarian car factory provides a loophole to circumvent European import duties on Chinese electric cars. However, this economic policy failed despite the investment subsidies of around HUF 1000 billion. Battery production fell 32 percent in one year by the summer of 2024. Instead of polluting and uneconomical factories in China, it is necessary to support investments that increase the added value of the domestic automotive industry and create quality jobs. That is why I am asking the European Commission to use the tools at its disposal to monitor compliance with the environmental standards that apply to them, in order to ensure genuinely sustainable development for Europe and Hungary.