In the EU context, Hungary identifies Germany's economic downturn as a significant challenge.
Germany's struggling economic scenario, as per Hungary's Finance Minister Mihaly Varga, poses challenges for the entire EU. The shrinking of Germany's economy is a significant hurdle - it's not just an issue for Hungary, but for the entire European Union, Varga mentioned during an informal get-together with some EU peers in Budapest. "Approximately 25% to 26% of Hungary's economy is tied to Germany's. That's our predicament - the export market, the connection, the partnership, the investments in the industrial sector."
He dismissed claims that foreign and German corporations operating in Hungary are being treated unfairly. He underlined that the issue isn't with Hungary's economic or tax system. "I believe the issue right now is with Germany's economic model. Germany is currently in a slump." Previously, German companies had lodged complaints about unfair treatment and biased competition rules in Hungary.
Not many EU finance ministers turned up for the informal gathering in Budapest. Some declined attendance - partly due to provocations initiated by Hungary's Prime Minister Viktor Orban. German Finance Minister Christian Lindner was present in his stead.
This economic slump in Germany, as mentioned by Hungary's Finance Minister Varga, directly impacts Hungary since approximately 25% to 26% of its economy is tied to Germany's.Despite Varga's assertion that Hungary's economic and tax system aren't the issues, Germany's Finance Minister Lindner still attended the Budapest meeting, suggesting potential concerns stemming from Germany's economic model.
