22 Feb

Under the traditional competitiveness checkup agenda item, the Council focused on the impact of European sectoral value chains on competitiveness and growth. Member States stressed the need for a holistic approach involving all common union policy and the importance of abolishing the existing fragmentation and barriers in the Single Market. László GYÖRGY Minister of State for Economic Strategy and Regulation acknowledged that the internal market facilitates the integration of EU companies into European and global value chains. The role of regional value chains has been recently increased in Hungary. For Hungary the industrial innovation value chains have an outstanding role, driven especially by the strong automotive industry, where the degree of integration of market services into European industrial value chains is relatively high.

Concerning the Commission’s long-term climate strategy Ministers stressed that the EU’s industry continues to contribute actively to the reduction of greenhouse gas emissions, however, the balanced combination and combination of sectoral policies is necessary in order to avoid excessive burden to the most exposed industries, regions. László György welcomed the initiation of the discussions of the 2050 EU strategy as well, and went further to emphasize the need for a thorough, detailed and extensive consultation, including the Heads of States or Governments, allowing them to take the final decision on any new commitments. Instead of determining quantified targets, we should decide on a policy mix, along which the 2050 results can be reached, he added.

Ministers discussed the main challenges member states face when designing national artificial intelligence strategies and expressed their strong support for the European coordinated plan. László György informed the Council that an AI coalition has been recently set up in Hungary. The preparatory works of the Hungarian AI strategy have been started recently in close cooperation with the AI Coalition by identifying the most relevant pilot projects.

While welcoming the discussions on the competitiveness aspects of the European Semester process, Mr György pointed some of the controversies relating to it, especially its linkages to cohesion policy, as suggested by the Commission; we do not accept that the way we utilise funds for cohesion purposes would be decided in Brussels.  Furthermore he pointed out that had we complied with all recommendations stemming from the Semester process the Hungarian economy would likely have performed less successfully during the last several years. The economic performance of recent years shows that the government had chosen the right strategy, as the economy continues to grow well above the EU average. The achievements have also been acknowledged by the recent upgrade of sovereign credit rating by S&P.

A number of Members States, including Hungary, requested the Commission to give information about the follow-up to the annulment of its regulation relating to the NOX emission limits by the General Court of the EU. Several delegations expressed their concerns about the legal uncertainty it cased, and voiced their fears about the eventual negative impact it would have on the industry. The State Secretary agreed that the EU must continue the support of the reduction of nitrogen-oxides and other pollutants and the development and dissemination of new technologies, however an appropriate and sufficient preparatory period should be assured for the car industry to comply with the new regulation.

On the margins of the Council Hungary joined to the European Blockchain Partnership. At the occasion of signing the joint Declaration, László György emphasized that blockchain technology does not only open up new business opportunities, but can make public services more efficient and secure for European citizens.