Hungarian Minister of Finance, csárdás to Russian music: “EU

The European Union, in essence, is weakened by its own sanctions. The question is whether it can survive these sanctions measures applied to Russia, Mihály Varga, the Hungarian Minister of Finance, said at Băile Tuşnad.

The politician spoke about these issues at the debate entitled “Before the storm or after the storm? – Inflation, the price of energy, recession”. Mihály Varga stated that Europe needs Russian energy for now, but the transition will require a lot of time and resources, according to MTI.

The sanctions that have been imposed do not work, there is no international cooperation on this subject, and the EU is very concerned about the change in the exchange rate between the euro and the dollar. In this regard, Europe is “deep in the corner of the losers”, said the Hungarian Minister of Finance, adding that the sanctions policy is more of a problem for Europe than for the country against which it was imposed.

He stated that the rising inflation, the increase in energy and food prices, the increase in interest rates and thus the increase in loans, are clear signs that the world, including Hungary, is heading towards an economic slowdown.

Whether it will really be a recession or a very sharp slowdown is still unknown at this point, but there is currently no analysis that predicts a radical improvement in the situation, added Mihály Varga.

The politician veiledly attacked America’s position on this global problem of recession, recalling that the US Federal Reserve was the first to react to the crisis, being willing to accept the recession to eliminate inflation from the economy, but this strategy takes less into account unemployment, subsistence and social problems.

This pushes the global economy towards recession, and from this point of view the current situation is only the calm before the storm, compared to what will follow in the economies of the states, said Mihály Varga.

The Hungarian government tried to limit inflation by freezing prices, but this is not sustainable in the long term, the politician added, stating that this measure gives Hungarian businesses the opportunity to prepare for a more difficult economic environment and adapt.

The Minister of Development from Romania, urging investment

Attila Cseke, the Minister of Development, Public Works and Administration, declared that, in the current economic situation, the way forward for Romania is not to impose austerity, but to promote development and investments.

This year, the Ministry of Development will finance investments worth approximately 20 billion euros and will be able to launch tenders from the recovery fund worth approximately 6 billion euros, the minister also declared.