Nagy Márton, Hungary's Minister of National Economy, addressed concerns over the European Union’s economic strategy during a conference organized by the XXI Century Institute and the Mathias Corvinus Collegium on Monday.

He referenced the Hungarian Prime Minister's previous remarks, suggesting that the EU's longstanding approach has resulted in various economic challenges.

In his presentation, Nagy cited the energy crisis as a catalyst that exposed what he described as the 'illness' within the European Union's economic framework.

While countries like China and the United States have adopted development-oriented state policies, Nagy argued that the EU adheres to strict fiscal conservatism.

He compared the budget deficits of China and the USA—which reportedly exceed 100 percent of GDP—to Germany's considerably lower figures.

Nagy underscored the importance of redirecting more financial resources into economic stimulation across the EU. He posited that addressing competitiveness requires strategic investment and questioned the EU's current fiscal rules, particularly regarding support for digital and green transitions.

Referring to infrastructure disparities within the EU, he noted the continuing market fragmentation and inefficiencies that exist between member states.

The minister articulated that the divergences between the EU, China, and the United States in handling recent economic crises have become more pronounced.

He described the EU's choice between fiscal conservatism and an incentive-driven state as a fundamental value decision impacting its economic framework.

According to Nagy, while the USA and China maintain high levels of public debt—to stimulate growth—the EU's lower figures, including Germany’s, reflect a different economic philosophy.

Addressing Hungary's economic strategy, Nagy expressed support for a developer state model and suggested that overemphasis on fiscal conservatism has led to stagnation in places like Germany.

He expressed optimism that engaging private sectors could resolve Germany’s economic issues and stated that a protectionist approach, through tariffs, could safeguard the domestic market but warned of its limitations without active support programs.

He further questioned why the EU has not established directives for the electric vehicle industry despite its significance to competitiveness and noted that recent policy changes, such as Germany’s withdrawal of related subsidies, have hindered progress in this area.

Nagy concluded by emphasizing the need for nations like Germany to invest in their economies to spark a competitiveness turnaround at the EU level, noting the upcoming months as crucial for Hungarian economic alignment with broader international shifts.