Although Europe and Asia mutually depend on each other from an economic point of view, in the current situation Europe probably needs Asia more, Minister for National Economy Mihály Varga said. He represented Hungary at the 11th Asia-Europe Meeting (ASEM) in Milan.

At the event, at which 49 countries and several international financial institutions participated, topics related to trade, investment and economic-financial developments -- besides issues on partnership -- were on the agenda. Following this meeting, the finance ministers of the eurozone and after that the finance ministers of the EU28 held informal sessions.

In a telephone interview to Hungary’s official news agency MTI the Minister pointed out that since the onset of the global economic crisis the countries of Europe and Asia have taken different paths: Europe has opted for austerity policy, while Asia has focused on economic stimulus. Data show that the Asian crisis management policy has been more successful, he added.

The Minister stated that due to measures boosting employment and investment the Hungarian Government has been more productive than the majority of EU member states. In the second quarter GDP was up by 3.9 percent year-on-year, while it increased by 0.8 percent compared to the previous quarter. In light of these data, he said, regarding economic output growth Hungary has joined the best performers in the European Union.

He also called attention to the fact that although several EU enterprises have outsourced some activities to Asia, goods produced there tend to return to Europe in the form of imports. However, in order to maintain a balance between production and demand, employment should improve and wages should increase, he stressed.

The “Opening to the East and Keeping with the West” policy of the Government has been proven right, especially as other countries are also reaching out to Asia, he said.

(Ministry for National Economy)