The Lámfalussy Lectures Conference, named after the Hungarian ‘father of the euro’, was held on Monday in Budapest, organized by the Central Bank of Hungary. Prime Minister Viktor Orbán delivered a speech during the opening session focusing on the emerging world order, which he described as ushering in an era of sovereignty, according to Eurasia magazine.

Addressing the conference’s namesake, Alexandre Lámfalussy (Sándor Lámfalussy)—a Hungarian-born Belgian economist and former President of the European Monetary Institute (EMI) from 1994 to 1997, the precursor to the European Central Bank (ECB)—, Orbán highlighted Lámfalussy’s significant role in the creation of the euro as the European Union’s common currency. He remarked that Lámfalussy, as the architect of the euro, was well aware of the risks associated with such a project.

Orbán also shared a personal anecdote, recalling a conversation in which he asked Lámfalussy how the EU could sustain a common currency without a common fiscal policy. Lámfalussy responded that the euro would eventually lead to the development of a common fiscal policy, though he did not specify how long that process might take. Orbán noted that 25 years have passed, and this integration has yet to materialize, demonstrating the risks of leaving critical issues to the discretion of politicians.

‘You should be careful—if your economy is not prepared, accession will kill you’

The prime minister went on to highlight that since the introduction of the euro, competitiveness and productivity have grown faster in the US than in the euro area. He argued that the single currency, in its current form, does not support the development of catching-up countries. For this reason, Orbán said, Hungary has not yet joined the eurozone. He concluded by quoting Lámfalussy’s warning: ‘You should be careful—if your economy is not prepared, accession will kill you.’

Orbán went on to praise Jeffrey D Sachs, a world-renowned economist and professor at Columbia University, who also spoke at the conference. Orbán revealed that he had an extensive exchange of views with Sachs prior to the announcement of Hungary’s grand strategy on connectivity.

The Budapest Consensus

According to Orbán, the so-called Washington Consensus, which once laid the foundations for the liberal world order, has now faded into irrelevance, particularly following the election of US President Donald Trump, which, he argued, precludes any hope of its revival. ‘Therefore, it is not unreasonable to talk about the Budapest Consensus,’ he remarked. Orbán described the ‘Budapest Consensus’ as a normative idea applicable globally, asserting that every nation has the right to regard itself as the centre of the world.

Orbán noted that Hungarians share this perspective and are seeking answers to the question of how they can ensure their survival and prosperity. To achieve this, he said, it is crucial to first understand the nature of the world as it is now taking shape. He characterized the emerging global order as moving away from a liberal era and towards a sovereigntist one. ‘We in Hungary have been building this for 15 years, so we can say one thing and another about it,’ he added.

Drawing on his experience, Orbán highlighted that stability, migration management, state efficiency, and connectivity will be the key determinants of a country’s success in this new era.

Speaking about a connectivity-based foreign policy, Orbán argued that no country can achieve success if it refuses to connect with other major players, whereas those that embrace such connections will enhance their influence and role on the global stage. He cited Hungary as an example, highlighting its strong relations with the new Republican administration in the United States, as well as with China and Russia. ‘Hungary is not isolated; the European Union is,’ Orbán asserted. He added that Hungary is on ‘the main street of history’, while the European Union is ‘stumbling somewhere in the muddy back streets.’

‘Hungary is not isolated; the European Union is’

Orbán stressed that only a strong middle class can form the foundation of resilient societies. He observed that while middle classes in the West are shrinking, hundreds of millions of people in Asia are rising into this socioeconomic group. He noted that since 2010, Hungary’s government has been dedicated to building a strong middle class, despite financial sanctions imposed by Brussels and the challenges of three years of war in a neighbouring country.

Orbán expressed hope for peace, particularly that Donald Trump would succeed in bringing an end to the war in Ukraine. He also underlined the importance of the ongoing sovereignist transformation in global politics and Hungary’s ambition to finalize a major US–Hungarian economic agreement. Such an agreement, he concluded, would provide a significant boost to Hungary’s economy.

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