#EUFridays by JEF Hungary - Guest Contribution
Sziszi Andrási
Jun-24-2022
All eyes on Brussels
After EU leaders announced their support for the Ukrainien candidacy on 17 June, all eyes and ears were on Brussels, but make it a summer edition, all sunglasses and hands holding sangrias were impatiently awaiting the results of the two-day summit in Brussels that started on 23 June. Alongside some crucial and pressing matters, such as the economic situation, inflation and the topic of the future of Europe conference, the status of Ukraine, Moldova and Georgia were discussed. However, all of Europe knew there was a heavy focus on the Russian-invaded Ukraine. The gathering on Thursday and Friday faced the question whether Ukraine should be formally announced as an EU candidate. This would, in the words of Ursula von der Leyen, bring morale boost to the war-torn country. However, the path to membership is hardly easy, especially the longer it is at war with Russia. All leaders know that more work is needed to fight corruption and loosen the grip of oligarchs on the Ukrainian economy. It will definitely not be an easy way in. However, Europe has given the second green light to Ukraine and Moldova, granting their candidacy status. Congratulations to both countries. Or shall we say congrats to three countries, as a result of agreements at the summit, Croatia will be joining the Eurozone. At the summit, the economic situation was also discussed. Due to many variables, such as the pandemic and sanctions on Russia, energy and consumer prices are rocketing sky-high. Not to mention the impact of war on global food-security. The worsening cost-of-living will have a substantial impact on millions of households and businesses (not just) in the European area, hence the council has many complications to face in the coming years. May this summit be only the beginning for EU leaders to help their economies and societies stay resilient in these challenging times.
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Macron 2.0: Legislative Elections
Last weekend was the end of the legislative elections in France, and Macron has fallen short to take an absolute majority. Hence, in his second-round presidency, he is facing the challenge of either governing through coalition-building, ruling with a minority in parliament or cohabiting with a prime minister and government from a different camp. Macron's centre-right alliance won 245 seats, 44 short of the 289 needed for an absolute majority. The pan-leftist coalition (NUPES) won 131, twice the total its individual parties had previously held separately. The far-right won 89 seats, skyrocketing from the 8 it claimed in 2017. And the conservatives, claiming to stay in opposition to Macron's centre right, won 61. Macron’s first comments after the election were an emphasis on ‘constructive solutions and compromise’, words that bring quite problematic actions considering the landscape of politics within the country. Nevertheless, all eyes will be on the finance committee, as by tradition, the largest opposition group wins the privilege of chairing. Will this set-up enable (or put a barricade before) Macron’s bold projects such as the pension reform? It is yet to be figured out and the impacts it will have on the European Union.
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Hungary’s game
Surprise, surprise, Hungary is back with its veto games again. The country has blocked a directive that would impose a minimum of 15% tax on multinational corporations with annual revenue exceeding €750 million. This tax reform was introduced as an initiative from the OECD. The deal was one of the highest priorities during the French EU Presidency, which is coming to an end with the beginning of July. The global minimum corporate tax rate, agreed by 136 countries, “is designed to ensure that large multinational enterprises pay a minimum level of tax of 15% on the income arising in each jurisdiction where they operate.” This OECD directive needed to be approved by all the EU27 in order to be effective within the EU, however, Hungary has put a stop to it at a meeting on 17 June. Their argument against the directive is based on the already existing troubles within the economy. Zoltan Kovacs claims that imposing tax would put potential risks on Hungarian companies and their competitiveness. According to Politico, the country is following the playbook of Poland, called ‘hostage-taking’. What Hungary might wish to achieve with their veto is the green pass of their recovery plan, which has been on hold due to concerns over corruption and rule of law. How the book will play itself will be left to the Czech presidency and their efforts.
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A European Summer: heatwaves and flight disruptions
It might not be so true after all, that sunglasses and hands holding sangrias impatiently awaiting the Council’s summit, since many travellers are trapped in the nightmares of heatwaves and flight delays all over Europe. Temperatures between 40 and 43 Celsius were recorded in some areas over the week. France reached historic records which has led to a cancellation of several outdoor events. The highest of them all was 42.9 Celsius in Pissos. However, if this was not good enough, delayed and cancelled flights is what travellers can face around Europe, mainly caused by staff strikes as well as the difficulty to adapt back to higher passenger numbers after Covid-19 restrictions eased across the countries in the region.
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