This project has received funding from the European Research Council under the European Union’s Horizon 2020 research and innovation programme
(Grant Agreement n. 669194)
During the 1960s and 1970s, the coordination of Hungary’s policy towards the European Economic Community (EEC) was exclusively managed by the Ministry of Foreign Trade, since gaining access to the EEC market was envisioned primarily as a tariff and commercial issue. Therefore, the Ministry was an active and independent agent in foreign economy policy. Compared to the Ministry of Foreign Affairs, it formulated necessary state measures more boldly. In August 1965 it proposed a partial re-evaluation of Hungary’s EEC policy for the first time. Minister József Bíró and Deputy Minister Béla Szalai urged for coordinated negotiations of the Council for Mutual Economic Assistance (CMEA) with the EEC and measures to create a new situation in which Hungary would gain advantages in exchange for diplomatic recognition of the Community. The ministry also argued that Hungary should concurrently build its own discrete ties with the EEC.
After the launch of the New Economic Mechanism, the Ministry of Foreign Trade went a step further when it called the CMEA position an outdated perspective and argued that the CMEA member states should consider official diplomatic recognition of the EEC. At the same time, the ministry prepared a detour with the purpose of gaining access to the EEC market. In June 1968, it argued for Hungary’s accession to the General Agreement on Tariffs and Trade (GATT), where Hungary could directly negotiate with the EEC without diplomatically recognising it. The Hungarian application was submitted the following year. However, the GATT accession in 1973 did not fulfil the hopes placed in it. For the next fifteen years, Hungary was still classified as a state-trading country, and the EEC’s specific quantitative restrictions remained in force.
Hungarian aspirations to find supporters within the CMEA also remained unsuccessful, since in December 1969 the CMEA confirmed its refusal to give the EEC diplomatic recognition or seek a trade agreement. Facing firm Soviet resistance to adopting a new line, Hungarian diplomacy attempted to avoid the issue of diplomatic recognition by proposing ways to encourage direct ties between the CMEA and the EEC. In February 1972, for example, a Hungarian proposal envisaged preparatory talks between the CMEA and the EEC on possible forms of contact or agreements on certain economic policy issues, possibly selected sectoral issues.
Hungary also presented several remarkable initiatives to encourage wider pan-European cooperation. In October 1969, the Ministry of Foreign Affairs drew up a detailed memorandum which suggested adding economic topics to questions of security on the proposed agenda for a Conference on Security and Co-operation in Europe. In June 1973, the Hungarian leadership also put more emphasis on cultural and economic cooperation, requesting the elimination of discriminatory trade barriers and highlighting the importance of pan-European collaboration. The signing of the Helsinki Final Act in 1975 gave fresh impetus to Hungarian diplomacy to launch new cooperation with Western countries in order to develop bilateral political, economic and cultural relations.
The CMEA-EEC negotiations reached a stalemate in October 1980 and there was no hope of reviving them in the short term. In this delicate situation, the reformist circles in the party (for example, Ferenc Havasi, the economic secretary of the HSWP Central Committee) envisaged the possibility of concluding a free trade agreement with Brussels, but the Ministry of Foreign Trade deemed this idea “economic naivety.” From spring 1981 onwards, a latent discord emerged between the state and the party apparatuses. The Ministry of Foreign Trade (Minister Péter Veress and Deputy Minister Tibor Melega) and the Ministry of Foreign Affairs (Minister Péter Várkonyi) shared the viewpoint that Hungary could not accept any EEC discriminatory measures and practices, and any kind of agreement with the EEC should improve the conditions for Hungarian exports to the Community. In November 1982 on the occasion of a GATT ministerial meeting in Geneva, as a tactical move the Hungarian delegation suggested to the EEC representatives that they should examine the possibility of concluding a bilateral agreement. Behind closed doors, the Ministry of Foreign Trade and the close circle of Vice Prime Minister Marjai showed a positive attitude towards the EEC while keeping a watchful eye on Moscow’s reactions, and in fact they intended to avoid a compromise with the EEC. Following a change in the international climate (new initiatives by Mikhail Gorbachev), the younger generation in the Ministry of Foreign Trade (Tibor Antalpéter, János Martonyi, Péter Balázs) more genuinely supported a rapprochement with the EEC, and finally Vice Prime Minister József Marjai himself conducted the negotiations with the EEC in 1987-88.
* This text summarises some of the research findings of PanEur1970s team member Pàl Germuska, which are published as a chapter in PanEur1970s’ academic edited book. For a link to the e-book, please see Hungary’s “Overview” webpage of this map.
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The Eighties and Hungarian Foreign Policy
MNL OL M-KS 288. f. 32/b cs. 105. ő. e. 66-87. | 10/83
The document highlighted new opportunities for Hungarian foreign policy. It supposed that Budapest would have real a chance to prepare a proper framework agreement with the EEC. Moreover, it stated that Hungarian foreign policy could prepare the ground for Hungary’s accession to EFTA. - Available here. |
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Engere Zusammenarbeit zwischen Ungarn und den Europäische Gemeinschaften. 18. Dezember 1981,” (letter from Helmut Schmidt to János Kádár)
MNL OL M-KS 288. f. 47. cs. 765. ő. e. 210–214 | 12-18
Schmidt stated that the political risks of Hungary’s stronger attachment to the European Community were evident. He argued that any attempt to establish closer links with the EEC would have far-reaching implications of high political importance. - Available here. |
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A shortened report on conversation between Marjai and Talyzin on 23 January [1984]
MNL OL XIX-A-2-af 187. d. | 01-23
József Marjai reported about the EEC negotiations to Nikolai Talyzin, Soviet Deputy Chairman of the Council of Ministers, who commended and thanked the continuous Hungarian information on Budapest’s talks with Brussels. - Available here. |
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Recent developments in relations with the EEC – evaluation and proposal
MNL OL XIX-A-2-af 187. d. | 820/Me
Melega suggested to József Marjai the following tactic: Hungary would send its representatives to the expert level negotiations, but maintain its position concerning discontinuation of the discrimination, refusal of the effective reciprocity. - Available here. |
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A letter to Péter Balázs commercial councillor: Answer to Vice President Haferkamp
MNL OL XIX-A-2-af 187. d. | 185/Ap
The ministry ordered its commercial councillor to inform Haferkamp on the Hungarian standpoint in a "non paper paper". This “non paper” claimed that a desirable agreement should resulted in a substantial improvement in export conditions for Hungarian goods. - Available here. |
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Standpoint to negotiations with the ECC
MNL OL XIX-A-2-af 187. d. | M-273/8/984
The deputy minister of foreign trade suggested to launch the talks with Brussels, but intended to submit the issue to the top leadership solely at the last moment: when an agreement would be close to conclude three aspects should take into consideration – whether the contract guarantees Hungary’s commercial rights (in accordance with the GATT). - Available here. |
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Our economic and trade policy towards the Common Market, options to develop it
MNL OL XIX-A-2-af 40. d. | 00951/3/82, Ma-004/94/82
The Ministry of Foreign Trade urged Hungarian leadership to conclude a bilateral arrangement with the EEC as soon as possible, and pointed out that diplomatic recognition was inevitable sooner or later. - Available here. |
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No. 10 129/1982 resolution of the Economic Committee: Our economic and trade policy towards the Common Market, options to develop it
MNL OL XIX-A-39-b 25. d. | 10129/1982
The resolution gave permission for launching talks with the EEC and negotiating a comprehensive agricultural agreement, but also explicitly claimed that these negotiations would be solely an exchange of views of technical nature. - Available here. |
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Proposal to the Economic Committee: Our economic and trade policy towards the Common Market, options to develop it
MNL OL XIX-A-39-b 37. d. | 00941/45/1982
The new, modificated version of the proposal on relations with the EEC stated that diplomatic recognition was ‘no longer relevant’. This change showed that the time had not yet come to shift towards a new approach. - Available here. |
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No. 20 022/1968 resolution on our relations with the Common Market
MNL OL XIX-A-90-a 83. d. | 20022/1968
The Committee for International Economic Relations passed a resolution requiring Hungary to initiate, within CMEA, a re-evaluation and better coordination regarding CMEA–EEC relations. - Available here. |
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Proposal to the Ministerial Board. Our links with the Common Market
MNL OL XIX-A-90-c 165. d. | 2-002/19/1968
The ministry called the CMEA position an outdated perspective, claiming that, based on the current realities and possible advantages, CMEA member states should consider official diplomatic recognition of the Common Market. - Available here. |
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Our relations with the Common Market
MNL OL XIX-A-90-c 165. d. | 2-0041/101/1965
The report suggested a modified political line, which would boost concrete economic profit without abandoning the conceptual integrity of CMEA’s non-recognition policy. - Available here. |
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Hungarian concepts on the issues of building contacts between the CMEA and the EEC
MNL OL XIX-A-90-c 166. d. | 00217/NGKT/72
Hungarian diplomacy attempted to avoid the issue of diplomatic recognition by proposing ways to make direct ties between the two main economic groups, i.e. CMEA and EEC. - Available here. |
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Proposal to the Ministerial Advisory Board: Our links with the organs of the Common Market and the further tasks
MNL OL XIX-A-90-c 166. d. | 2-004/35/1970
The Inter-State Department of European Non-Socialist Countries of the Foreign Trade Ministry summarized the new tasks of the Hungarian policy towards the EEC. Hungary should conclude agreements on certain products; initiate negotiations with EEC candidate countries; and attempt to sign long-term trade agreements with actual member states before 1974. - Available here. |
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The CMEA as an organization, and the relations of countries gathered together into the CMEA with the EEC - multilateral issues
MNL OL XIX-A-90-c 166. d. | 4-0016/68/1974
The document compares the legal status of the CMEA and the EEC, discusses how should Hungary handle an agreement offer from the EEC, and what kind of strategy would be desirable on behalf of the CMEA states. - Available here. |
