György Matolcsy, Governor of the Central Bank of Hungary, shared his projection for the future of the European Union, essentially calling for more sovereignty for European nations and a decentralized European Union.
His statement, published in the pro-government daily Magyar Nemzet, György Matolcsy argues that there are two scenarios for the future of the EU until 2030, one which leads the continent to fall behind the rest of the world, while the other allows it to regain its international relevance through approaches consistent with the Hungarian Union government’s approach.
On top of the world for 500 years
Matolcsy claims that Europe was the world winner until the 20th century. Thanks to geopolitics, political and economic power, industrial and technological revolutions, and faster development, he has controlled the world for centuries.
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“Let’s learn from the mistakes of the past so that we can all be winners,” Matolcsy said, concluding with a quote: “The good is the enemy of the best.” Continue reading
However, due to the world wars and the cold war of the 20th century, Matolcsy argues that Europe has fallen behind, to the point where its nations have become “secondary actors” in the global community. This new historical period, characterized by a digital revolution, is the one which, according to Matolcsy, will be defined by the North American and Asian powers.
American hegemony over Europe
Matolcsy maintains that since American troops set foot on European soil in 1917, the continent has been under the American sphere of influence. The world wars, the Cold War split, the reconstruction of Germany, integration, the introduction of the euro and the euro crisis have all been influenced by American foreign policy.
The governor of the National Bank argues that due to these events the EU has lost its sovereignty, claiming that “Germany – the strongest economy in the EU – is in essence an occupied nation and that the EU is not a sovereign decision maker ”.
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Matolcsy insisted that the Baltic states, Poland and Romania had handled the crisis better than others, “including us Hungarians”.
Matolcsy says that because of the failures of the European Union, such as going against American interests, creating a more centralized Europe through the dream of the “United States of Europe”, and not trying to take back its advance after falling behind. It evokes a number of solutions to various events in the history of the EU, very much in line with a less centralized Europe in favor of inter-state cooperation.
A European apocalyptic day against a new golden age
Given the United States’ rise to hegemony in the world, Matolcsy says the European Union has two options. In the first scenario, the Europeans give up their great power ambitions and align themselves with the great American strategy. In the second scenario, the European powers essentially continue on the path he says they are following, which makes them suffer the consequences of the grand American strategy throughout the 2020s.
If the EU continues its attempts to centralize against American influence, says Matolcsy, there will only be further rifts between nation states. Debt will continue to accumulate both at the national level and at the level of the European Union, as well as within the euro area. Ultimately, the European powers will fall too far behind the US, UK and Asia.
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A once centralized circle of power can be handed over to sovereign nation states. Multiple parallel monetary systems can emerge, with their own monetary policies.
It is clear that Matolcsy is in favor of an EU less centered on the institutions of the EU, such as, for example, the euro zone, and more in favor of a national agency within a union more founded on international cooperation of separate units than on common legislation.
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“Our poor economic performance relative to our competitors over the past decade is the result of poor government performance,” Matolcsy said. Continue reading
It should also be noted that the governor of the Central Bank is known to have a clear bias in favor of the Hungarian national currency against the relevance of the euro. This, coupled with the Hungarian government’s emphasis on national sovereignty instead of what Prime Minister Viktor Orbán calls the EU’s “liberal imperialism”, is of significance when examining the reflections of the EU. administration on the future of the Union.