Orbán opts for ‘economic neutrality’
Viktor Orbán wants Hungary to pursue a 'strategy of economic neutrality', rejecting the formation of the bloc envisaged by the West in response to the economic rise of eastern states. He said that economic relations should not be based on ideological considerations. Hungary's press weighs up the implications.
Diversified trade flows create stability
One-sided dependence makes a country vulnerable, writes Index, in an article co-written with the pro-government Oeconomus Economic Research Foundation:
“By participating more actively in international trade, a country exposes itself to more shocks over which it has relatively little control. However, the problem becomes even more pressing when a country is linked to global trade unilaterally and with a strong geographic concentration of exports. Limiting vulnerability can be achieved by diversifying the range of products and services that are exported and reducing geographic concentration. ... It is in any case a rational assumption that if a country is somewhat dependent in all directions, it is not unilaterally dependent on anyone.”
Unsuccessful so far
The facts so far don't support Budapest's arguments, Magyar Hang comments:
“Take, for example, the Russian gas that we bought in July - at a 12 percent markup over the stock exchange price, according to Eurostat data. ... Our estimated losses due to our connection with Russia since the new contract took effect in October 2021 stand at around 253 billion forints [roughly 630 million euros] - according to calculations made by Népszava. In this case, Hungary made its own choice about whom it does business with, but it clearly didn't opt for the better deal. ... This 'economic neutrality' may be a good thing, but the reality of the situation doesn't seem to indicate that.”
Hopefully pure fiction
Victor Orbán's plan would mean Hungary leaving the EU, writes hvg:
“Hopefully the prime minister realises that 'economic independence' in the form he described is not feasible within the EU and that there is no life for Hungary outside it. ... In this case, the 'economic independence' he described is pure fiction, an ideological framework designed to explain the government's controversial measures at home and abroad (thedismantling the rule of law, constant confrontation with Hungary's allies, rubbing shoulders with all kinds of dictators) and its economic policies, which has not been very successful.”