1

According to the generally accepted statistical indi-

cators, the European continent covers ten million

square kilometres. The Hungarian state covers

some 93,000 square kilometres of this area. There

are about fifty countries on the continent, with a

total population of more than 700 million people.

Hungary’s population is ten million, and there are

about three more million Hungarians living in the

neighbouring countries. Therefore, 1.8–1.9 percent

of the total population of the continent is Hungar-

ian. One percent of the area and about two percent

of the population – does that constitute too much

or too little? Do Hungary and Hungarians in gen-

eral mean anything in Europe and to Europeans?

The answer is clear: ever since theancient Hungarians came down theCarpathian mountains on horse-back and founded the Hungarianstate, Hungary has been a part ofEuropean history and has shapedthe fate of the continent, sometimeswith a greater, sometimes with asmaller influence. Hungary hasbeen present on the political, eco-nomic and cultural map of Europefor 1,100 years. Hungarians havebeen living here for more than athousand years, this is their home.In the course of its history, theHungarian state has been both adominant power in Europe and a

country suppressed by foreign con-querors. In today’s Europe, it can beclaimed that Hungary ranks some-where in the middle of those fiftystates – since it cannot be classifiedeither as a big, or as a small coun-try.

Of course size alone cannot betaken as a determining factor, eitherfor Europe, or for Hungary. It ismore important that Hungary – justlike any other nation – has its ownhistory, culture and traditions, aquite special language, as well ascharacteristic economic and politi-cal values. Due to its geographicalsituation in the heart of Europe,right on the borderline betweenEast and West, throughout the 1,100years of its existence, the countryhas probably endured more warsand destruction than other Euro-pean states. Hungary sufferedheavily at the time of war, while try-ing to utilize the peaceful and rela-tively calm periods for growth anddevelopment. It has safeguarded allthe values which are the mostimportant for any people: its cul-ture, its mother tongue, its nationalcharacteristics and identity. Hun-gary – as opposed to so manyoppressed nations – managed tostay on the historical scene, and didnot get lost in the giant continentalmelting pot that came to be namedEurope from the 12th - 13th cen-turies. Although it is true that this

MINISTRY OF FOREIGN AFFAIRS OF THE REPUBLIC OF HUNGARY 2004 www.kum.hu

Hungary in the European Union

melting pot was not as unifying asthe one in North America from the18th century, a large number ofpeoples, nations, empires andstates nevertheless disappearedinto the fog of European history.The Hungarians learned how toadapt to the given circumstances,and how to make progress, as wellas how to give and take. Right at thebeginning of their newly foundedstate, the Hungarians were convert-ed to Christianity, and this provid-ed a framework for the flourishingof Hungarian culture and intellec-tual life for almost a thousand years.

In Hungarian culture, which ismore than the totality of arts, theEuropean ideas, colours and formscreate a unity with the characteris-tic Hungarian spirit and motifs. Inthe field of music, the world of tra-ditional Hungarian melody is inter-twined with universal musical ele-ments, bars and intonations. FerencLiszt (1811-1886) and Béla Bartók(1881-1945) are names of interna-tional reknown, still Hungariansprimarily regard them as Hungariancomposers. Of course, the Hungar-ians are willing and proud to sharethem with the world. Thus, whileImre Kertész (1929) – the winner ofthe Nobel Prize in Literature in 2002– is regarded as a part of thenation’s heritage, Hungarians alsoconsider him as part of universalculture. The Hungarians take pridein contributing to the culturalwealth of the world in practicallyevery branch of the arts and sci-ence. Painters Victor Vasarely(1908-1997) and László Moholy-Nagy (1895-1946), film directorsIstván Szabó (1938) and MiklósJancsó (1921), nuclear physicist EdeTeller (1908-2003), János Neumann(1903-1957), the father of the com-puter, Nobel prize winner econo-mist János Harsányi (1920-2000),and Ernõ Rubik (1944), the inven-tor of the magic cube, have con-

veyed Hungarian spirit and culture,representing the Hungarian peoplein an accessible language all overthe world.

While Hungary and its represen-tatives have formed a creative partof this continent and have enrichedEurope with many different valuesfor 1,100 years, the country itself hasalso been affected: Hungarians havereceived a lot from Europe and therest of the world. The great king,Saint Stephen (975-1038), who con-verted the Hungarians to Christian-ity and directed them into the main-stream of historical and social devel-opment of the time, warned his son:„Weak is a single-language country,so you should welcome thestrangers”. Invited and uninvited,the representatives of many peoplescame to seek shelter, and later tosettle and find their home in theland that was populated mainly byHungarians. Although the over-whelming majority of Hungary’spopulation claims to be Hungariantoday, several peoples settled inHungary over the centuries and arestilling living here: French, Italians,Poles, Turks, Jews, and partly form-ing separate ethnic minorities areGermans, Slovaks, Serbs, Romani-ans, the Roma and others. The Hun-garians have never regarded thesegroups as unwelcome because –while making a living in this coun-try – they also contributed to Hun-gary’s wealth and culture. SándorPetõfi (1823-1849), one of the great-est poets and a revolutionary geniusof the 19th century, had a Serbianfather and a Slovak mother, still heregarded himself as Hungarian. Andall the craftsmen, peasants, industri-alists and traders who were „simply”doing their jobs also helped thepeople and contributed to the coun-try, which is the Hungary of today.

The Hungarians are colourful, yetuniform. Over the centuries theyhave adopted foreign values, made

use of foreign knowledge andexperience, and in the meantimehave become a true Europeannation themselves. They have pre-served their Hungarian identitywhile retaining their specific andindividual features. In fact, the pre-ceding centuries have paved theway towards becoming a full mem-ber of the European community ofnations and its present organisa-tion, the EU from May 2004. And allthis required co-operation, recon-ciliation and tolerance, and later:successful integration and adapta-tion – as this is proved by Hungary’sexperience. Despite the historicalexperience gained, reintegrationinto modern Europe could not becarried out in itself. Accession to themainstream of European develop-ment, to the European Union,demanded serious studies andextensive preparations. Thisproved to be the only way for Hun-gary to preserve and strengthen itstraditions, customs and culture.

No matter how many common,connecting elements there havebeen between its states, the Euro-pean continent has never beenhomogeneous. Although it was theEuropean powers that were themotors of the development of theworld through the centuries, theydid not see the necessity to com-bine forces in order to solve theircommon problems. In a paradoxi-cal way, it was Europe’s politicaldecline – mainly as a result of WorldWar I and II – that led to the recog-nition that a united force is neededto settle the affairs of this continentpeacefully and effectively.Squeezed into the background inglobal terms, the leaders of Euro-pean states realised that without aunited front they would not be ableto make use of their economic andpolitical potential and to enforcetheir interests in the face of strongcompetition. In addition to other

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efforts, it was the awareness of thisfact, which resulted in the estab-lishment of the European Coal andSteel Community in 1952, the Euro-pean Economic Community in1957, and ultimately the EuropeanUnion in 1993. Thus, over a periodof some fifty years, the very sameEuropean nations, which had oncebeen opposed to, and competedwith one another, have achieved anunprecedented high level of co-operation. The phasing out of theircommon borders has created a uni-fied internal market for the coun-tries of the EU, organically integrat-ing and merging their economies. Aspecific everyday example of this isthe establishment of the commoncurrency, the euro, which wasintroduced in 2002 in the wake ofthe carefully planned monetaryunion.

Thus, this European co-operationhas established a strong communi-ty, which – despite its deficiencies– creates unbreakably strong tiesbetween the nations concerned. Asa consequence, the danger ofrenewed historical conflicts andfierce internal competition isdecreased to a minimum. Thisoffers a secure basis for peace anddevelopment within the continent.

Very few examples can be foundin other parts of the world of sucha voluntary integration of sovereignstates, and of a willingness to aban-don so many elements of nationalindependence. A similar processtook place in North America andSwitzerland two hundred yearsago, although, of course, the con-ditions were fundamentally differ-ent. However, the result was thesame everywhere: the birth of inter-nal peace and harmony, as well asa more effective and more power-ful protection of interests throughjoint efforts. Nevertheless, today’sEurope is different from the USA,Switzerland or other federal states

in that national independence andseparation are mixed with commu-nity (union) co-operation; thereforethese elements form a very specialunity.

As was the case with the otherCentral and Eastern Europeanstates, Hungary had no opportuni-ty for a long time to integrate intothe European scheme that evolvedand became unified after World WarII: the reason for this was the YaltaAgreement, and the oppositionbetween the East and the West inthe ideological, political, militaryand economic fields. It was notuntil the disintegration of the Sovi-et dominated eastern block (amongother things, the Warsaw Treaty, theCouncil of Mutual Economic Assis-tance, internationally known asComecon, and later the SovietUnion itself) that Central and East-ern Europe could once again jointhe community of European stateson a full and proper basis.

However, in Hungary this inte-gration was not started only uponthe breakdown of the Yalta Agree-ment. The process of restoringHungary’s co-operation with theWestern European states hadalready commenced two or threedecades before this. Following theStalinist period, and after the revo-lution in 1956, it was recognised ata relatively early stage that Hungaryis unquestionably attached toEurope through its interests. At thebeginning, amidst the dominantinternational circumstances of thattime, small steps were taken, whichinitially led to extended commercialcontacts. It is true, though, that thereal breakthrough was not trig-gered by this, nor by the fact thatHungary – criticised by the majori-ty of the other socialist countries –joined the most important interna-tional economic and financial insti-tutions (GATT in 1973, the WorldBank and the International Mone-

tary Fund in 1982) at a relativelyearly point.

It actually became possible torestore Hungarian and WesternEuropean relations when – in thesecond half of the 1980s – the influ-ence of the Soviet Union graduallydiminished, and steps were takento restore the independence of theEastern European countries, and inparallel with this the social andpolitical system was changed. Hun-gary was one of the leaders of thistransformation. Being the first topull down the „iron curtain” and tosign the Hungary-EC AssociationTreaty, which placed economicand commercial co-operation ontoa new basis, Hungary, togetherwith Poland and the then Czecho-slovakia provided an example tothe other Central and EasternEuropean countries. By the early1990s Hungary had establishedclose political relations with all ofthe western democratic states,encouraging the other countries inthis region to accelerate the transi-tion process.

From the 1950s all the way untilthe 1990s, Hungary’s foreign traderelations were dominated by theSoviet Union and the other socialistcountries. Up to 70-75 percent ofthe country’s foreign trade turnoveroriginated from and was oriented tothese relations. However, as a resultof the changes from the end of the1980s, a complete geographicalrearrangement of these took place:the nations of Western Europejumped to the top, and, by now,their participation in Hungary’s for-eign trade, as compared to the pre-vious 15-20 percent, is around two-thirds. The sudden change was notrestricted to the shift in the orienta-tion of the turnover. Besides therapid increase of trade, new formsof economic cooperation wereestablished. In the one and a halfdecades that have passed since the

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Breakdown of the acquis communautaire according to chapters, and the major transitional exemptions granted to Hungary

Title of the Acquis chapter Area of transitional exemption

1 Free movement of goods –

2 Free movement of persons –

3 Free movement of services Investment protection, the level of the startup capital of cooperative credit institutions

4 Free movement of capital Limitations on the acquisition of property in Hungary; limitation on the purchase of arable land

5 Company law –

6 Competition policy Preserving tax preferences for large-scale investors; tax preferences for local governments

7 Agriculture Preparation of slaughterhouses; protection of winegrowing areas;standardisation for the cages of egg-laying hens

8 Fishing –

9 Transport policy Cabotage limitation; restrictions on overfreight vehicles; exemptions for MÁV (Hungarian State Railways) and MALÉV (Hungarian Airline Company)

10 Taxation Preference VAT rates in certain sectors; keeping the VAT rates of small and medium enterprises at a low level; excise taxation

11 Economic and monetary union –

12 Statistics –

13 Social policy, employment –

14 Energy –

15 Industrial policy –

16 Small and medium enterprises –

17 Science and research –

18 Education and training –

19 Telecommunication and information technologies –

20 Culture and audiovisual policy –

21 Regional policy –

22 Environment protection Packaging waste management; incineration of hazardous waste;conducting sewage water from settlements; air pollutant emission of large heating equipment

23 Consumer protection –

24 Co-operation in justice and home affairs –

25 Customs union Raw aluminium import; relief from customs payment obligations;managing customs free zones

26 External economic relations –

27 Common foreign and security policy –

28 Financial control –

29 Financial and budgetary provisions –

30 Institutional issues –

31 Other items –

Table 1

beginning of the transition, a com-plex system of relations, similar tothose existing between the mem-bers of the Union, was established,with Western participation in for-eign direct investments, privatisa-tion, and production co-operation.In this process, a significant rolewas played by the already men-tioned Association Agreement – ineveryday usage: European Agree-ment – signed in December 1991,which ensured further assets for thedevelopment of financial, legal andpolitical co-operation. Hungarygained a possibility to begin andaccelerate the process of closing upto its Western European partners, inthe context of settled conditions,and utilising the more and morecomplex forms and means of co-operation.

Already prior to the signing theEuropean Agreement, Hungary hadmade it clear that its main objectivewas accession to the Euro-Atlanticorganisations, i.e. NATO and theEuropean integration. Although theaccession to the two organisationsimplied different processes, therewas nevertheless a strong relation-ship between them, since bothrequired, as a basic condition, thecreation of the social, political andeconomic conditions of democra-cy, and later the consolidation ofdemocracy itself. Hungary – as wellas the other countries that set simi-lar targets – had to lead separatenegotiations with these two organ-isations, and had to certify to bothNATO and the European Union thatit met their respective expectations.The process was somewhat quick-er in the case of NATO, as Hungary– together with Poland and theCzech Republic – became membersof the North Atlantic Treaty Organi-zation in March 1999.

The time lag between gainingmembership of the two organisa-tions can be explained by the fact

that in the case of the EuropeanUnion it was not only in the rela-tively narrow sphere of politicaland military terms that the candi-date countries’ level of prepared-ness and conformity had to beproved, but, because of accessionconditions, the whole of the nation-al economy had to be brought intoharmony with the structures of theUnion. This implied special anddeep-rooted social and economictransformation measures, effortsand tasks.

In the spirit of the above, Hun-gary submitted its application forEU membership on 1st April 1994.While the preparations and thenegotiations for NATO membershipwere on-going, the Hungarian gov-ernment took extraordinary meas-ures in order to accelerate the clos-ing up to the European Union. Thedirection and development strate-gies of national economic policywere defined in keeping with thisobjective. Therefore, the dominantelements of the 1990s were theapproximation, the adaptation toHungary’s future European part-ners, as well as gradual political,legal harmonisation and economicclosing up. The aim was to preparethe Hungarian society and econo-my to meet the membershiprequirements of the EuropeanUnion, and to make the countryactually ready for membership inthe European Union.

Of course, the last decade of the20th century was not only charac-terised by the efforts of Hungary –and the other Central and EasternEuropean states – to adapt them-selves to the Union, but the Euro-pean organisation itself also had toprepare itself to absorb the newmembers. It has always been abasic idea of the European cooper-ation that integration into it shouldbe open to any European country.Any state is welcome that meets the

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conditions which guaranteesmooth co-operation. Earlier theEuropean Communities and laterthe European Union were enlargedon several instances in harmonywith this approach.

The adoption of the new mem-bers in 2004 has its own character-istic features just like any earlierenlargement. This time, the largenumber of the candidates is excep-tional, and their economies are rel-atively poor compared to the major-ity of the Member States. The EU’spopulation is going to increase byabout 80 million people, and theextension involves certain econom-ic and financial tasks for the Union,and there are some sensitive politi-cal problems, such as the case ofthe divided Cyprus. However, theMember States recognised thatthese challenges are appropriatelycounter-balanced by the advan-tages that will emerge for the EU:the internal market will be consid-erably extended, the EuropeanUnion and its global position willbe stronger, and – above all – thesecurity and political situation ofthis continent will be further sta-bilised.

The EU accession is a longprocess in terms of time, andrequires preparation, adjustmentsand efforts on both sides. Ofcourse, it is the candidate countriesthat need to undertake the longerway and the – at times only seem-ingly - heavier burden. This was thecase in the past and it remains thecase at present. However, it is clearthat none of the new members willhave to go through such funda-mental changes and to make suchpainful efforts as the ex-socialistcountries had to in the course oftheir transformation, because thesecountries had about one and a halfdecades to meet the conditions thattheir partners in the Union estab-lished and achieved over a half a

century, and under much morefavourable circumstances.

This dynamic adaptation repre-sents a special challenge not only interms of its political and economic-financial impact but also in itshuman aspects. Whole societies,ways of thinking and the mentalityof the peoples concerned had to beintegrated into the new systems.Although this switch-over broughtalong grave burdens, the candidatestates nevertheless uniformlyrecognised that the changes, theadaptation and the integration intoEurope are not measures enforcedby external powers but are ratheran essential interest of the countriesconcerned. After all – while thisround of enlargement seemed to bea „simple” political, economic andlegal harmonisation practice for theMember States – for Hungary andthe other new members it was stillan event with a serious intellectualand emotional content: the com-pletion of their social and econom-ic transition, and the arrival into theEuropean home.

The enlargement of Europeanintegration always depends on apolitical decision made by theMember States. However, in orderto make such a decision, the can-didate(s) has (have) to meet a suit-able level of political, economicand legal maturity. In fact, Hungaryhas made efforts to meet thisexpectation ever since the changeof regime was started. The recog-nition and the appreciation of thiswork was indicated by the fact thatthe European Union decided inDecember 1997 to begin accessiontalks with Hungary, as well as withsome other candidate countries.The negotiations launched on 31March 1998 were successfully com-pleted in December 2002. Each ofthe candidate countries had tocarry a double load during the spanof the almost 5-year negotiation

period. On the one hand, they hadto continuously fulfil the member-ship-related requirements, and, onthe other hand, they were forced tocarry out hard bargaining with theMember States with regard to theconditions for accession. In themeantime, the European Unionwas not idle either: parallel withthe accession dialogue, steps weretaken to meet the conditions ofaccession within the Union, as theNice Treaty – worked out in 2000and entered into force on 1 Febru-ary 2003 –determined the furtherdirections of integration and of thereform of community institutions.

Joining the European Union isseemingly a unilateral process: thecandidate countries have to acceptthe contents of the community’slegal order and to provide the basisfor applying the community’s rules,the acquis communautaire. It hasnever been the integration itselfwhich was adjusted to the newmembers, but rather the latter oneshave had to adapt to the communi-ty. This is exactly what happenedthis time as well. Hungary and theother candidates, in harmony withtheir national interests, have gradu-ally adjusted to community prac-tices and to the acquis communau-taire, and have developed theireconomy and political system inkeeping with the expectations ofthe future membership. By the timethe specific issues of the accessionwere actually put to the agenda,Hungarian practice was alreadyidentical with, or similar to the EUpractice in many areas.

Although it is always the candi-date state that has to seek con-formity with the community condi-tions, this does not mean that thecandidate state concerned is notgiven a chance to protect its inter-ests and to shape the agreementthat specifies the concrete condi-tions of accession. Since the candi-

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environmental, transport, agricul-tural and food industrial rules andregulations concerning financialservices that involve heavy finan-cial costs.

Both the candidates and theMember States were allowed torequest such „exemptions”, andthey made use of this opportunity.For example, the EU is delaying theintroduction of the enforcement ofthe free movement of persons andthe Common Agricultural Policy. Ofcourse, on the whole, the candidatecountries were given more, and theMember States were given less tran-sitional exemptions.

Apart from the exemptions for adefinite period of time, the negoti-ations also covered the clarificationof some other issues. For example,Hungary and the EU had to agreeon how to take into account thefacilities and performances that canbe measured and that can beexpressed in numerical terms.Thus, an agreement had to be

reached on the size of agriculturalland cultivated, on permitted pro-duction quantities (quotas), and onthe volume of community supportgranted to Hungary. Agreementwas reached with regard to certaininstitutional questions that stipulatee.g. the voting weight and the rep-resentation of Hungary in variousinstitutions (the European UnionCouncil, the European Parliamentand elsewhere). Table 2 shows thatin the major community institutionsthe direct influence and the repre-sentation of Hungary – twelvecouncil votes, 24 parliamentaryseats etc. – is identical with that ofthe states with a similar population,irrespective of the fact whether itconcerns the founders of the inte-gration or states that integrate at alater stage. This fact also indicatesthat – as far as it is possible in inter-national contacts – equality andequal rights are enforced in thisintegration.

International talks never bring

dates have to fully adapt them-selves to the Union – and thisrequires major intellectual andmaterial efforts –, the countries thatare about to join the EU may askfor certain transitional exemptionsin specific areas. For example,Hungary managed to achieve thatcertain community rules do nothave to be met immediately – i.e.from the first day of membership–but with some delay only. Table 1shows that Hungary made use ofthe opportunity to apply a transi-tional period in certain areas and inthe case of legal rules where theabsence of prompt implementationdoes not disturb the operation ofthe internal market, but the accel-erated implementation had thepotential to impose an especiallyheavy burden both on the popula-tion and on the economic players.The transitional measures adoptedby the negotiating Parties enableHungary to perform or to intro-duce, in a gradual way, some of the

Distribution of the votes of the EU Member States in the Council and their mandates in the European Parliament

Votes Seat Votes SeatMember states in the in the Member states in the in the

Council EP Council EP

Austria 10 18 Latvia 4 9

Belgium 12 24 Lithuania 7 13

Cyprus 4 6 Luxemburg 4 6

Czech Republic 12 24 Hungary 12 24

Denmark 7 14 Malta 3 5

United Kingdom 29 78 Germany 29 99

Estonia 4 6 Italy 29 78

Finland 7 14 Portugal 12 24

France 29 78 Spain 27 54

Greece 12 24 Sweden 10 19

Holland 13 27 Slovakia 7 14

Ireland 7 13 Slovenia 4 7

Poland 27 54

The 25 countries altogether: 321 732

Table 2

maximum results. The negotiatingparties – even in the case of thefriendliest relations – necessarilyhave to reconcile their interests inorder to find a compromise. This iswhat happened at the accessiontalks as well. No party achieved allthat it had intended to achieve atthe beginning, but no party was aloser either. In fact, European co-operation is not based on gaining agreat deal to the detriment of theothers. Here, the objective is tomeet every country’s requirementsto as great a degree as possible. Theabove mentioned principle of theequality of the Member States isalso enforced: countries with a sim-ilar population are given the sameconsideration – irrespective of theirlevel of development and econom-ic position.

In the EU the principle and thepractice of positive discrimination isstrongly enforced – which isunprecedented compared to otherinternational organisations. There-fore, the small Member States caninfluence the decisions to a greaterextent than their proportionate pop-ulation. However, the situation isreversed in the case of larger ones:within the Council their voting rateis lower than their proportionatepopulation, and they also have a rel-atively small representation in thecommunity institutions. This princi-ple serves the purpose for one ormore large countries not to gain toomuch influence, not to take advan-tage of their power and not toenforce their dominance, so that thesmaller countries could also exertan acceptable level of influence onthe decision-making processes.

The mutual respect of interestsand the principle of equality werealso enforced at the latest accessiontalks. This, however, did not meanthat the two negotiating sides hadthe same power position and inter-est enforcing ability. Those who

are already in the European inte-gration are always in a morefavourable position than the candi-dates. At any rate, even despite thenumerous disputes, it is hard toquestion that once again realisticresults were reached and mutuallyfavourable agreements were madeunder the given circumstances.The resulting tasks for the newmembers are tough but not impos-sible to carry out, and they providethe opportunity to get prepared tofulfil the membership-related obli-gations as well as the enforcementof the membership-related rights.

It is worth pointing out this dou-ble feature: the Union membershipis not only a set of obligations, butit also offers rights, as well as assis-tance programmes for the lessdeveloped members. As a result,the countries that are underdevel-oped in certain areas compared tothe community average, mayreceive special support. In order tomake use of the rights and oppor-tunities it is indispensable that theparties concerned fully understandhow the system and the communi-ty mechanisms operate. It is notenough if only the governmentsare aware of these opportunities.The citizens, and especially thosewho are running businesses, mustunderstand the consequences ofmembership. This is so mainlybecause Union membership doesnot bring automatic prosperity,either for the individual or for thecountry. Accession means theunlimited extension of internalmarket competition to the newmembers, and – due to the natureof the market - this competition willactually bring results to those whoreally got prepared and have acompetitive edge. The governmentand the economic players have tomake serious efforts in order towork out the most favourable con-ditions for accession, guaranteeing

s

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for the whole of Hungary and forthe majority of the social and eco-nomic players to be winners withtheir EU membership.

Through integration into the EU,Hungary will be the part of anorganisation that radiates power,and of a market that contains hun-dreds of millions of people, oper-ating according to unified internalrules. The uniform system and thephased out borders increase prof-itability and decrease costs. Inaddition, the new members willalso have a share in the prefer-ences, protection and rights thatthe older members are entitled to.As has been mentioned above, theprinciple of equality between theMember States will only be violat-ed where the new members aregiven transitional exemptionssince the community regulationsare compulsory for the old mem-bers. In certain areas, however, wemay not speak of total equalitybecause the older members alsorequested exemptions for a limitedperiod of time. Some EU countries,for example, temporarily limit theemployment facilities of the newmembers, and in the common agri-cultural and regional policy thenew members do not receive thesame level of support as the old EUmembers.

Despite this, Budapest is count-ing on considerable support andadditional financial resources fromthe Union budget in order to accel-erate the development and the mar-ket integration of the Hungarianbusiness entities, since Hungarianentrepreneurs will encounterstricter competition in the Unionmarket than they are accustomedto. At the same time, competitionalso has the advantage that marketplayers can reach beyond the limit-ed Hungarian national market,gaining access to the whole internalmarket of the Union, moreover, it

will be easier to reach the worldmarket as well.

The benefits of the legal har-monisation related to EU accessioncannot be quantified, neverthelessit is of primary importance. Byadopting the acquis communau-taire, Hungary has not only beenintegrated into the European socialand economic environment, buthas also created the conditions thatare indispensable anyway for theoperation of a modern marketeconomy that is in conformity withthe challenges of globalisation andinternational competition.

The participants of the world’sbiggest and fast developing marketaccess opportunities – that wouldbe hard to substitute with othermeans – to promote their econom-ic development. Probably this is thereason why the public opinion insome countries believes that theEuropean co-operation primarilycovers economic and commercialco-operation, and less attention ispaid to other forms of collabora-tion. As a matter of fact, the Euro-pean Union is not exclusively aneconomic organisation, and thesuccess of membership cannot bejudged purely on the basis of eco-nomic figures. For example, mem-bership offers increased internaland external security for the mem-ber countries. It is a fundamentalaspect for internal security that thebasic community principles, normsand the stipulations of basic treatiesrepresent a legal and moral forcetowards respecting and enforcingdemocracy, law and order, as wellas human rights. Belonging to awider circle of nations, organic inte-gration, and even mutual interde-pendence obviously play a role instrengthening the external sense ofsecurity of the Member States.

New members are becomingmore and more aware of increasedsecurity, but the coin has two sides.

This means that not only the newmembers are winners of the inte-gration but the current EU membersalso benefit from the values and thefacilities that the candidates bringwith them. Hungary’s ten-millionconsumers’ market is not very sig-nificant, although it should not bediscounted. However, it can beregarded as a considerable markettogether with the other newcomers.The EU is also enriched by eco-nomic and social values and factorssuch as the highly qualified Centraland Eastern European labour force,or the intellectual and cultural„value added” of the new members.Beside the economic-commercial,intellectual and cultural assets, it isalso an aspect to be appreciated inEurope that, over the past one anda half decades this group of coun-tries, including Hungary, hasenhanced security and political sta-bility in a region near the crisis zoneof former Yugoslavia, where thebloody conflict at the end of the20th century implied real danger topan-European peace and security.

The enlargement in 2004 is givenspecial importance by the fact thatthis will be a giant step towards uni-fying the whole of the continent.Never before have the peoples ofEurope worked in such numbers,scope and unity in order to createprosperity, and to solve commonproblems. The common problemsare: employment, ageing popula-tions, technical and technologicalchallenges, as well as today’s mostcritical issue – terrorism. Theseproblems can be effectively solvedonly by a united Europe, ratherthan by a Europe that is divided intoregional groups and separate coun-tries.

The enlargement of the EuropeanUnion is not only a European mat-ter. In a multi-polar world economyand amidst continuously changingglobal power and political rela-

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In 1993, when the European Unionwas established – by virtue of theMaastricht Treaty – a decision wasmade on co-operation in foreignand security policy as well as con-cerning justice and home affairs.Although the joint efforts of theEuropean states did not start at thisdate in any of the fields, it was theMaastricht Treaty that brought co-operation in these issues up to thelevel of the Union. Overall co-oper-ation and unified actions form anindispensable prerequisite forenforcing the power and influenceof the community. Still, progress isslower than expected. Although theharmonisation of the foreign policyactivities of the Member States hasimproved over the past few years,the institutional background hasbeen strengthened, and the issuesof joint defence policy have alsobeen put on the agenda, many peo-ple find that the progress to datehas been unacceptably slow andlimited, and undoubtedly a „uni-form European voice” is still lack-ing. However, it would be a mistaketo underestimate the results thathave been achieved, since manag-ing the most sophisticated elementsof national sovereignty at the levelof the Union is a unique andunprecedented practice.

Hungary is encouraging efforts tostrengthen common foreign policyand defence. Hungary recognisesthat the power positions of theMember States are not identical, butreckons with the consideration ofthe bigger countries because it isHungary’s standpoint that - in theunified Europe - small countriescannot be excluded from theresolving of political, security poli-cy and military issues. Hungarydeems it important that the EUmembers still maintain their deci-sion-making independence indefence policy that is being shapednow, and that they can freely

decide which common actions theywish to join.

Hungary continues to regardNATO as the basic pillar of Euro-pean security, but also encouragesthe establishment of the EUdefence dimension. Therefore, theEU should be able to settle its owncontinental matters, to solve theincurring problems and to inde-pendently assume humanitarian orconflict preventive measures. Theobjective is that the EU, in meetingglobal security political challenges,should play a role which is con-form with its economic and politi-cal weight. Hungary is ready tocontribute to creating the requiredeconomic and military capacities asfar as the country’s resources per-mit this.

Hungary emphasises that nation-al and international security shouldbe undivided in common foreignand security policy, and that anti-terrorist actions should be a com-mon task, and urges suitable EUresponses to global challenges. Inthe Accession Treaty Budapestundertook to meet the communityexpectations and to strengthen itsborders, where a long section hasbecome the external border of theEU. Hungary provides for the set-ting up of the institutional back-ground and enactment of the relat-ed legal regulations that arerequired for border protection.

Hungary also has its own specialviews and interests in the field ofthe foreign and security policy, andin common defence. It is in Hun-gary’s interests that the commonpolicies result in stabilised politicalrelations in the Carpathian basinand lead to stronger regional co-operation. Hungary has always laidgreat emphasis on maintaininggood relations with its neighbours.Within the framework of commonforeign policy, Budapest wishes tocontinue to be an active player in

tions, a strong and unified Europeis not only a competitor to, but alsoa cooperating partner of the UnitedStates, Russia, Japan, China andothers. Hungary supports andencourages the principle that theEuropean Union should share theresponsibilities and have a part insolving global issues in proportionto its economic weight and politicalinfluence. Hungary is ready to co-operate in this field, although itsscope is naturally limited due to thecountry’s size and internationalrole. There are, however, areaswhere Hungary can actually exert arelatively significant impact onevents. Thus, for example, the EUcan well utilise the Hungarianexperience in the Balkans, in itsrelations with Russia, and withregard to some developing coun-tries, as well as with the states thatare interested in social and eco-nomic transformation.

The enlargement in 2004 and theaccession of the new membersbring along deeper co-operationand wider integration. Economicco-operation needs to be furtherstrengthened because certain areasare still not within the scope of co-operation. A series of social andemployment problems also requiresolutions. The European countrieshave to take more determined stepsin the field of research and devel-opment despite the joint large-scaleefforts and the EU’s scientific frame-work programmes. This is the onlyway to implement the effort –which is also backed by Hungary –that the European Union shouldbecome the world’s strongestknowledge-based economy by the2010s.

The co-operation of the Euro-pean states also needs to bestrengthened in areas that are notrelated to the economy and com-merce but are related to the sensi-tive areas of national sovereignty.

strengthening the security and thestability of the Central and EasternEuropean region. Hungary is deep-ening and broadening its co-opera-tion with the neighbouring statesthat have already become EU mem-bers, and would also like to assistthe partners who have been – forthe time being – left out of the Euro-pean Union. For Hungary, its ownaccession does not mean the end of„Eastern enlargement”. The coun-try’s own security and economicinterests – and last but not least theneed to maintain contacts with theHungarians living outside Hungaryaccording to European norms –imply that Hungary should supportthe development, the social andeconomic transformation and theEU accession of all of its neigh-bours. This is so because Europeanunity is simultaneously a Hungari-an and a pan-European interest forHungary.

Hungary – similarly to the otherearlier candidates – participated inthe work of the European Conven-tion, which in 2002 and 2003 wasseeking answers to the most impor-tant questions faced by the integra-tion, and which prepared the draftEU constitution.

Hungary played an active part inthe work of the Convention and theInter-Governmental Conference inthe years 2003 and 2004. It agreedthat the constitutional agreementshould define the major rights andobligations of the members, andshould clearly define the compe-tences provided by the MemberStates to the European Union, aswell as strengthen the role of thenational parliaments and of basichuman rights. Budapest alsoencouraged all ideas that facilitatedthe strengthening of the democrat-ic features of the integration andrendered the better organisationand greater transparency of thecommunity institutions.

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Hungary took the initiative inseveral issues in the course of thenegotiations. For example, therights of the ethnic minorities wereworked out in a very emphasisedmanner upon a Hungarian propos-al. Hungary also intended, togetherwith some other countries, toachieve that enhanced co-opera-tion be more open and inclusive.Thus, more intensive co-operationby a certain group of Member Statesmay continue to be in harmonywith the community objectives, andit may not lead to sharply segregat-ed groups within the integration.This is so chiefly because a differ-entiation within the integration mayresult in new borders and in theperpetuation of different levels ofdevelopment.

Hungarian „integration” policywill remain characterised by con-structive conduct in the future.Hungary is aware of the fact thatpermanent development is onlypossible within the framework ofthe EU. Budapest agrees to contin-uously strengthen integration inareas where respective interests canbe best enforced on a communitylevel.

Hungary’s citizens also carry theresponsibility towards the future ofEurope. The ties with Europe andthe acceptance of the integration–which represents the closest co-operation – was reflected by thefact that the overwhelming majori-ty of the voters agreed to the acces-sion upon the referendum held in2003.

Hungary and nine other Euro-pean states have become full mem-bers of the European Union on 1May 2004. Although this date is ofhistorical importance, it does notimply either a closing or an open-ing point because, from a historicalperspective, this event „only” rep-resents one given stage in a longprocess. Membership does not

mean the end of the integrationprocess either. Although Hungaryhas reached the level indispensablefor becoming a member in everysphere, there are still numeroustasks and work to be done in orderto catch up with the former EUstates.

In October 2003, the EuropeanCommission – which evaluates theperformance of the Member Statesand the candidates as well as theireventual breaches of law – pub-lished a report on the achievementsof the then candidates, includingHungary. This report, which dealtwith the countries joining the EU in2004 for the last time in their capac-ity as candidates, recognised Hun-gary’s state of preparedness and theprogress it had made. At the sametime, numerous deficiencies werepointed out. The report claimedthat it is necessary to accelerate thedevelopment of the Hungarianinstitutional system, with specialregard to the bodies that arerequired for implementing thecommunity regulations and forcontrolling the implementation. It isimportant for Hungary, and espe-cially for the business associationsand business people who arecounting on community support, toprepare the institutions that co-operate in acquiring and using theinstruments of the EU support pol-icy. These institutions will be need-ed in order to apply for communi-ty resources, to distribute and toallocate the resources granted, aswell as to monitor the utilisation ofthe resources.

The membership-related obliga-tions cannot be simply fulfilled byenacting decrees, guidelines andother rules of law. The communi-ty regulations must also be applied.No Member State – either old ornew - is able to meet all of theexpectations perfectly and flaw-lessly, and observe every legal stip-

ulation. This, however, does notallow anyone to disregard the reg-ulations. It is especially in the inter-est of the new Member States toobserve the legal stipulationsbecause this is the safest waytowards making use of the advan-tages from their membership.

Hungary is continuing its inte-gration into the community workand is adopting the mechanism andthe practice of co-operation. Sincethe signature of the AccessionTreaty, the European Union hasbeen treating the new members asfull members almost in every field.The candidates had been officiallyinvited to all events where commu-nity issues were discussed, evenbefore May 2004. Hungary and theother new members had the oppor-tunity to express their opinions andto protect their standpoints, and atthe same time were able to have aninsight as to how interests are safe-guarded on a national and commu-nity level. The new skills and expe-riences facilitate the new members’ability to become integrated intothe European co-operation systemand to find their respective placesthere.

Hungary had observed the co-operation of other countries as wellas the development, the prosperityand the advance of the WesternEuropean countries from theperiphery of European develop-ment over several decades, buttoday Hungary is already a fullmember of this co-operation. Thesimple outside observer hasbecome a partner inside the deci-sion-making circle, with respectand authority, and has been givenagain the historical opportunity toexert a direct influence on Euro-pean development.

Márta KonrádJános Vándor