Page 38 - RusRPTAug24

38 I Central Europe bne August 2024
nationalist-conservative government, but it is unclear how this problem affecting most European countries could be addressed at a supranational level.
The Orban government has mainly
used the issue as an argument against migration, while it is now facing an insurmountable challenge in addressing labour shortage at home which requires the inflow of foreign workers.
Promoting sustainable agriculture is a key priority to finding a rational balance regarding the strategic objectives of the European Green Deal, the stabilisation of agricultural markets, and a decent standard of living for farmers, according to the programme.
Hungary, which has been one of the biggest beneficiaries of the EU’s cohesion policy, will aim for a high-level strategic debate on the future of the policy, which plays a key role in promoting competi- tiveness and employment, as well as in addressing demographic challenges.
According to comments by Hungarian government officials over the past few months, economic development and GDP per capita should remain an important criterion in the allocation of resources.
The reinforcement of the European Defence Policy is one of the few areas
where the Hungarian government’s actions have aligned smoothly with the EU’s goals and targets. Budapest has embarked on massive development of its armed forces and increased its GDP spending to over 2% of the GDP.
The European Union must play a greater role in guaranteeing its security by strengthening its resilience and capacity to act, the detailed document reads.
Hungarian-China ties
Hungary's EU presidency will also be a critical period for China's influence in Europe, according to observers.
Beijing views this period as a strategic window to reinforce its economic and political ties. Budapest has increasingly aligned itself with Beijing, raising questions about the future of EU-China relations.
The Orban government’s inclination
to support China is not solely based on ideological alignment but has major economic foundations as the country has become the top trading and investment partner of the Asian superpower in recent years.
Bilateral trade had exceeded $17bn last year, while China accounted for the largest volume of FDI in the country. In 2023, Hungary received 44% of all
Chinese FDI in Europe, overtaking
the "big three", France, Germany, and Italy, benefitting from the surge in electric vehicle (EV) investments. Over two-thirds (69%) of Chinese FDI was made in the EV sector in 2023, up from 41% in 2022.
The upsurge in Chinese economic activity in Hungary has coincided with the freezing of EU funds to Hungary.
The two countries elevated their strategic partnership during Chinese President Xi Jinping's visit to Budapest in May.
In a recent phone conversation, Hungar- ian Foreign Minister Peter Szijjarto assured his Chinese counterpart, Wang Yi, that Budapest would leverage its EU presidency to foster mutual understand- ing and cooperation between Europe and China. One of the immediate economic concerns is the EU’s planned tariffs
on Chinese electric vehicles, set to go into effect next month. Hungary as a key supplier of EV batteries to Western Europe has vehemently opposed the move, saying the protection measure could trigger a trade war.
Hungarian diplomacy has sought dialogue-based solutions to trade conflicts, but this stance is expected to conflict with efforts by Washington to build a united Western front.
Estonian Prime Minister Kaja Kallas resigns Linas Jegelevicius in Vilnius
After securing the nomination
as the European Union's high representative for foreign affairs and security policy, Estonian Prime Minister Kaja Kallas on July 15 submitted her resignation to President Alar Karis, a statement from the presidency said.
Kallas has been the country’s prime minister since 2021, heading three consecutive governments. However, after winning re-election last March,
www.bne.eu
Kallas’ popularity has swiftly tumbled after she belatedly announced she was planning tax rises to bring down the country’s budget deficit, even though the economy was still struggling to emerge from recession.
Kallas has also appeared hypocritical
in her hawkish stance on sanctions against Moscow after it was revealed that her husband’s logistics company had continued to operate in Russia after the invasion.
Karis thanked Kallas, who led the government for three and a half years.
"It has been a time of crisis, with the coronavirus, the recession, and the war in Europe, when Russia's aggression in Ukraine shattered our security picture," the president said, according to the statement from the presidency.
Attention now turns to the formation of a new government. The current coalition partners – Reform, SDE and Eesti 200