Hungary & Slovakia – a Media Briefing
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Policy Area: Hungary and Slovakia European Union Center of North Carolina EU Briefings – Media Hungary & Slovakia – A Media Briefing THE EUROPEAN UNION AND EAST CENTRAL EUROPE: A DECADE OF ACTIVE PROMOTION OF DEMOCRACY AND ECONOMIC DEVELOPMENT The Cases of Hungary and Slovakia Summary: During the past decade of transition from communism, the European Union (EU) has been actively involved in stabilizing and consolidating the new democracies in East Central Europe. In the case of Hungary, one of the region’s frontrunners in meeting the Union’s pre-accession requirements, EU pressures and domestic developments were reinforcing each other. By contrast, Slovakia was slower in transitioning from communist rule. In this case, EU pressures have been crucial in order to change the authoritarian leadership and promote reform. During the past decade of transition from communism, the European Union (EU) has been actively involved in stabilizing and consolidating the new democracies in East Central Europe. Over time, the EU has developed a comprehensive approach to mentor and evaluate these countries on their way to liberal democracy. The evolving EU relationship with the aspiring members from East Central Europe (ECE) provides a valuable lesson that can be applied by governments and international actors in the on-going effort to promote democracy worldwide. In order to join the Union, a country must meet the following three conditions known as the “Copenhagen criteria:” 1) be a stable democracy respecting human rights; 2) be a functioning market economy; 3) harmonize its domestic laws with the body of EU law – the acquis communautaire. This pre-accession conditionality has been the essence of the EU’s comprehensive strategy toward the aspiring ECE countries. In March 1998, the EU formally opened accession negotiations with the ECE candidates, which made the 2004 round of Enlargement possible. The negotiations determined the conditions under which the applicants had to adopt, implement, and enforce the body of EU law. Each aspiring member had to draw up its position on 31 accession negotiation chapters, which covered diverse areas such as competition policy, the internal market, the environment, agriculture, taxation, energy, and science and research. Although most candidate countries had to implement painful reforms with high social costs in order to fulfill the EU membership criteria, the anticipated economic and geopolitical benefits of being part of the Union made compliance very attractive.1 Some ECE countries, such as Hungary, have accomplished the required economic and social reforms faster and with greater ease. Other countries, such as Slovakia, have been slower in meeting the EU’s demands. While the EU has undoubtedly bolstered Hungary’s transition to liberal democracy, culminating with the country’s accession to the Union in 2004, in this case the international pressures and the domestic developments were reinforcing each other. By contrast, in Slovakia, pressures to reform in order to join the Union helped marginalize domestic authoritarian politicians who were stalling change, and helped promote moderate politicians who were committed to finishing the painful economic and political restructuring of the country. 1 For a more developed version of this argument see Milada Anna Vachudova. Europe Undivided: Revolution, Democracy and Integration after Communism. Oxford: Oxford University Press, 2004. ___________________________________________________________________________________ The European Union Center of the University of North Carolina at Chapel Hill is funded by the European Union to advance knowledge and understanding of the EU and its member countries. Policy Area: Hungary and Slovakia European Union Center of North Carolina EU Briefings - Media HUNGARY SLOVAKIA Historical background: Hungary was part of the Historical background: In 1918, the Czechs and the Austro-Hungarian Empire, which collapsed during Slovaks formed Czechoslovakia. After the end of World War I. After World War II, the country fell World War II, Czechoslovakia became part of the within the Soviet Union’s sphere of influence. In 1956, Soviet Union’s sphere of influence in East Central a popular revolt calling for more political freedoms, Europe. In 1968, Soviet Union troops intervened to stall economic reform, and withdrawal from the Warsaw the liberalizing reforms known as “Prague Spring.” Pact was suppressed by Soviet troops. As early as the Upon the collapse of the communist regimes across the 1970s, Hungary began attempts to liberalize its region in 1989, Czechoslovakia gained independence. economy. In 1990, after the collapse of the communist The Czechs and the Slovaks agreed to separate regime, the first multiparty elections were held and the peacefully on January 1, 1993 into two countries – the country transitioned to democracy and free market Czech Republic and Slovakia. Slovakia joined both economy. Hungary joined NATO in 1999 and the EU in NATO and the EU in the spring of 2004. 2004. Political profile: During the first five years after the Political profile: Hungary was one of the first East “Velvet divorce” from the Czech Republic, Slovakia Central European countries to attempt economic and received growing international criticism regarding the political reforms under communist rule. These reforms lack of respect for minority rights and democracy did not work at the time, but they produced a lasting shown by the authoritarian prime minister Vladimir desire for change and a vision for the country’s future. Meciar. Under prime minister Mikulas Dzurinda, who Demographically, Hungary is characterized by won a second term in the elections of September 2002, significant ethnic homogeneity. While there are large Slovakia forged ahead with reforms. The Dzurinda Hungarian minorities in neighboring Romania, Slovakia governments have embarked on measures to improve and Serbia, only the Roma stand out as a sizeable the treatment of minorities, including the granting of minority within Hungary. This ethnic configuration has greater educational and cultural autonomy to ethnic contributed to marginalizing extremist politicians from Hungarians. Slovakia also has a sizeable Roma the beginning of the transition process. minority, which suffers disproportionately high levels of poverty and social deprivation. Population:2 10,032,375 Population: 5,423,567 Ethnic groups: Religions: Ethnic groups: Religions: Hungarian 89.9% Roman Catholic 67.5% Slovak 85.7% Roman Catholic 60.3% Roma 4% Calvinist 20% Hungarian 10.6% atheist 9.7% German 2.6% Lutheran 5% Roma 1.6% Protestant 8.4% Serb 2% Atheist and other 7.5% (underreported) Orthodox 4.1% Slovak 0.8% Czech, Moravian, other 17.5% Romanian 0.7% and Silesian 1.1% Ruthenian and Ukrainian 0.6% 2 Source of all data and maps on this page: CIA World German 0.1% Factbook 2004. Polish 0.1% ___________________________________________________________________________________ The European Union Center of the University of North Carolina at Chapel Hill is funded by the European Union to advance knowledge and understanding of the EU and its member countries. 2 Policy Area: Hungary and Slovakia European Union Center of North Carolina EU Briefings - Media HUNGARY SLOVAKIA Economy: Hungary has made the transition from a Economy: After a sluggish first five years of reforms centrally planned to a market economy with a per capita upon separating from the Czech Republic, during 2001- income roughly one-half that of the large European 2003 Slovakia made excellent progress in countries. Since 1989, the country has consistently macroeconomic stabilization and structural reform. demonstrated capacity for sustained economic growth. Major privatizations are nearly complete and foreign The private sector accounts for over 80 per cent of investment has picked up. Slovakia's economy GDP. Foreign ownership of and investment in exceeded expectations in 2001-03, despite the general Hungarian firms are widespread, with cumulative European slowdown. Yet, the current government faces foreign direct investment totaling more than $23 billion strong challenges in 2004, such as cutting the budget since 1989. Inflation has declined substantially, from 14 deficit, containing inflation, strengthening the health per cent in 1998 to 4.7 per cent in 2003. Hungary’s care system, and lowering unemployment from the biggest trade partners, such as Germany, Austria, and current 15 per cent. Slovakia’s biggest trade partners, Italy, are all part of the EU.3 such as Germany, the Czech Republic, Austria, and Italy, are all part of the EU. EU aid programs: In order to bolster the economic EU aid programs: Enormous investment is needed to and political transitions of the ECE candidates, the EU ensure that the applicant countries will be able to has launched major financial aid programs in areas such upgrade their standards, especially their industrial and as transportation infrastructure, technological environmental norms, in order to be able to comply modernization, agriculture, and cross-border with European Community legislation when they join cooperation. For all programs, disbursement of aid is the Union. The 2000-2006 pre-accession aid for the conditional upon making solid progress toward meeting countries of East Central Europe is another key element the EU’s accession criteria. In addition, the ECE of the European Union's strategy to support the reform applicants participate in a range of European efforts of the applicants. community programs in spheres