Zalakaros: Finance Minister Mihály Varga said that with the policy of economic neutrality and the government’s strong mandate, Hungary will be able to stay out of the economic cold war despite external pressure. Speaking at an event in Zalakaros, western Hungary, the finance minister emphasized that Hungary had consciously followed the path of connectivity since 2010, which has yielded significant results by now.
According to About Hungary, thanks to the work-based and open economic model launched a decade ago, Hungary has seen the creation of one million new jobs, real wage growth of around 60 percent since 2010, and more than tripled economic growth. Minister Varga attributed these achievements to the government’s timely recognition that the Hungarian economy needed to diversify its markets, leading to the policy of opening to the East.
It is thanks to this strategic approach that Hungary’s foreign trade doubled over the past decade, with three-quarters of the country’s products being exported, as pointed
out by Minister Varga. He cautioned that trade data underscore the interdependence between the West and the East, arguing that the isolation of Europe is not only a dead end but in reality, not feasible.
On the topic of economic neutrality, Minister Varga highlighted the transformation in Hungary’s financing structure since 2010. The share of Hungarian families in state debt has increased significantly from 3 percent to over 20 percent, while the share of foreign holders has decreased from 65 percent to below 40 percent. Furthermore, Hungary has diversified its external financing sources by including countries such as China, Japan, and Qatar.
To conclude, Minister Varga expressed Hungary’s stance that cooperation should be prioritized over the formation of economic blocs, urging Europe to return to this principle as soon as possible.
