EU vows stronger economy, defense at Hungary summit

European leaders have pledged to boost the bloc’s competitiveness following an informal European Council summit in Budapest.

The meeting was hosted by Hungarian Prime Minister Viktor Orban, who told a press briefing that he believed the common aim of the leaders assembled was "to make Europe great again," in a nod to the slogan of recently elected US President Donald Trump.

The specter of an upcoming Trump presidency loomed large over the summit, where leaders discussed how the bloc can move politically with Trump going forward and how the European economy can compete with the US.

Orban, an ally of Trump, said measures laid out in the Budapest declaration included urgent steps to reduce high energy prices across the bloc.

Orban: Europe must 'move from war to peace'

The Hungarian prime minister told fellow Europeans on Friday that Donald Trump's reelection will change the game regarding Russia's war in Ukraine, and urged the EU to "move from war to peace."

"The situation at the front is obvious, there is a military defeat" for Ukraine, Orban said separately in a radio interview.

Meanwhile, French President Emmanuel Macron and Polish Prime Minister Donald Tusk issued a joint statement in Budapest reaffirming their "determination to provide unwavering support to Ukraine and the Ukrainian people."

They reiterated their resolve to "maintain and reinforce their support" for Kyiv with the aim of repelling Russia’s aggression.

Scholz: Europe to 'work well with Trump'

On the topic of Trump, German Chancellor Olaf Scholz reaffirmed his willingness to work with the future US president.

But he emphasized that Europe must also look out for its own security.

"We must work together as the European Union, as Europeans, to do what is necessary for our own security," he said.

"This will be successful if everyone plays their part," he added.

In Budapest, Scholz said Europe would "continue to work well with the future American president."

On the potential for Trump's tariffs and their effect on the EU economy, Scholz said the bloc was prepared to take it on.

"I don't think we should speculate too much on this issue with the US. The EU has the competencies to do what is necessary. But we should all very clearly seek talks," Scholz added.

Von der Leyen: EU must make economic reforms

On the topic of the EU's economy, Commission Chief Ursula von der Leyen said on Friday that the bloc needed to implement economic reforms quickly.

Ex-European Central Bank head Mario Draghi released a sweeping report that raised the alarm over Europe's failure to keep up with the US, underlining the EU's low productivity and economic slowdown.

"The recommendations in this report are already urgent, given the economic situation we are in today. They have become even more urgent after the US elections," Draghi said.

Von der Leyen also promised on Friday to propose a "clean industrial deal" to support the decarbonization of the European economy in "the first 100 days" of her new European Commission set to start work in December.

She also put forth cutting red tape for businesses as well as the creation of a savings and investments union to help companies access capital to flow into research for innovation.

jcg/lo (AFP, Reuters, AP, dpa)