Horváth Gábor: EU Membership a great opportunity, but a great temptation for elites

10.04.2023 0 By NS.Writer

Horváth Gábor

In view of the Euro-Atlantic course of Ukraine, the Newssky correspondent asked the deputy editor in chief of «Népszava» (Voice of the People) Horváth Gábor to comment on what Hungary gained as a nation by becoming a member of the EU.

It’s better to start with what – in the example of Hungary – the EU membership wouldn’t guarantee to Ukraine. These are quick improvements in the standard of living and 100% foolproof protection from backsliding in democracy and human rights. As for the latter in particular, because of its experience with Hungary, the EU is going to make sure that any future member countries provide built-in constitutional and other guarantees to stay adherent to the common principles. Hungary joined the EU in 2004 and its per capita GDP, which started at about 60 percent of the EU’s average, was last year at 77 percent. (According to Eurostat.) It is true that most countries in the region have performed much better, but it’s worth keeping in mind that the EU is not necessarily a panacea for all the structural weaknesses of the economy and the political mistakes of incompetent governments. It’s essential to manage expectations well, as real or perceived negative turns can undermine the support of both the EU and the given government. The enthusiasm would probably be strong for a few years until the recognition of the above strikes. Also, there is a significant part of the population that would not see a change for the better in their lives.

On the other hand, EU membership provides huge political, economic, cultural, and other opportunities on the level of the country, regions, cities, towns, and individuals. Let’s start with the feeling of belonging to a powerful and established alliance, instead of individual countries trying to fend for themselves. In the case of Hungary, there was a mistaken political slogan: «You’ll be able to open your coffeehouse in Vienna». For most of us, it proved to be essentially untrue an₽d still describes the feeling when only the sky is the limit. In the EU, Ukrainian companies would get access to a vast market, would get easier and more favorable loans – and Western companies would be encouraged to do business with them more freely. There would be an influx of new companies investing in the country – meaning more and better-paying jobs, new industries, and technologies. In our case, it was mostly related to but not limited to car manufacturing.

Old member countries opened their labor markets to Hungarians after different waiting periods, but when they did, there was an ever-increasing flow of both blue and white-collar workers to mostly Austria, Germany, and the United Kingdom. Not all, but many Hungarians started to feel and behave like citizens of Europe. Especially after joining the Schengen treaty in 2007, people were able to cross borders without stopping, students gained access to foreign universities. By now, about 700–900 thousand Hungarians work and study in other EU countries.

Lastly, the EU provides significant funds and subsidies for projects, structural reforms – and agricultural production. If used wisely, these can significantly faster growth. Unfortunately, the Hungarian experience also shows the dark sides: the ruling elites might be tempted to channel these funds into their own pockets using the reminder for unproductive but spectacular, thus popular prestige projects. The EU has no effective control mechanism to make sure that countries don’t misuse these financial opportunities, which in the case of Hungary usually provides 3–4 percent of the GDP and in the last decade almost all the economic growth. (These funds are currently suspended due to Hungarian abuse of the EU system and the multiple infringement procedures started against the Orbán government.

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