Dr Krisztina Lakos on expanding Cyprus and Hungary's ties - and the EU's need to boost competitiveness

Hungary’s Ambassador to Cyprus, Dr Krisztina Lakos, talks about expanding relations with Cyprus in areas like tourism, the results of Hungary’s recent six-month Presidency of the Council of the European Union, the need for the EU to remain competitive and the significance of the Budapest Declaration.

The Embassy of Hungary reopened in Nicosia last year. Why did it close in 2014?

2014 was the year when our diplomatic mission in Athens was also accredited to Nicosia. However, given that Cyprus has always been an extremely popular destination for Hungarian tourists, our government decided to open a so-called ‘non-independent representation’ in Nicosia, primarily with a consular focus, under the professional guidance of the Embassy in Athens. The operation of this office, as well as our active bilateral political, cultural and economic relations in recent years, showed that an Embassy would have the authority to further develop these relations and explore new areas of cooperation, for example in the areas of agriculture, innovation and investment promotion. The official reopening and inauguration of the Embassy took place on April 2, 2024, with the participation of H.E. Péter Szijjártó, the Hungarian Minister of Foreign Affairs and Trade and H.E. Dr Constantinos Kombos, the Cypriot Minister of Foreign Affairs.

Since then, our staff has been growing continuously. In addition to my Deputy, and the Consul, our Economic Attaché has also started work – an indication that we wish to strengthen our economic and trade relations and expand the opportunities inherent in investments.

A good number of young Cypriots choose to study in Hungary. Are there plans to expand the educational relationship between the two countries?

Hungary and Cyprus do indeed have a very strong relationship in the field of education – primarily in higher education – and several universities in Hungary are ranked high internationally, especially in the fields of medicine and technology. Over the years, many Cypriot students have graduated from Hungarian universities and then returned to Cyprus to apply the knowledge they gained at home. We try to systematically inform Cypriot students about the universities and scholarship opportunities that exist in Hungary, for example, in the framework of a Higher Education Information Day.

Our main partner in this work is the University of Cyprus. As an expression of this excellent cooperation, our Embassy recently donated a renowned Hungarian invention – a Gömböc (a 3D closed surface with one stable and one unstable point of equilibrium) – with a unique serial number to the University of Cyprus. Our plans also include bringing these former students together in the framework of an alumni meeting. In October we organised such a meeting for former medical students, in cooperation with the University of Cyprus and Semmelweis University in Budapest.

As you have already noted, Cyprus is a popular holiday destination for Hungarian visitors. Do you see the numbers increasing in the future?

Hungary and Cyprus have a strong tourism connection, supported by direct flights operated by Wizz Air and Ryanair, which makes travel between the two countries convenient for Hungarians and Cypriots alike. Wizz Air inaugurated its base at Larnaca International Airport on 1 July 2020 with two aircraft and that number has now doubled, highlighting the airline’s commitment to strengthening connectivity not only between our countries but across Europe and beyond. In 2023, Cyprus welcomed more than 66,000 tourists from Hungary, marking a significant increase on previous years. In 2024, visitor numbers had already exceeded 57,000 by October. On the other hand, in 2023, close to 36,000 Cypriot residents visited Hungary, while by October 2024, the figure stood at 25,500, indicating a slight decline.

Are there any indications as to why the numbers fell last year?

This decreasing trend can partly be attributed to the fact that, in the past, travel agents and airline consolidators would negotiate contracts with major airlines, a practice that is no longer adopted by many low-cost carriers. Positively, there is an effort to enhance group booking options at Wizz Air, which could significantly help Cypriot travel organisers promote trips to Hungary. By offering group booking services for 16 or more passengers, Wizz Air provides fixed pricing and flexibility in changing passenger names up to 72 hours before departure, which reduces financial risk and allows for easier coordination of group travel. Such practices enable travel agencies to plan and market group tours more effectively, potentially making Hungary an increasingly attractive destination for Cypriot travellers.

Both Hungary and Cyprus are endeavouring to promote themselves as year-round tourist destinations, leveraging their diverse offerings to appeal to visitors in every season. How well is Hungary succeeding in its efforts?

Hungary’s tourism sector is currently experiencing remarkable growth. In the first ten months of 2024, 15.5 million guests used Hungarian accommodation, representing a 10.2% increase on the same period last year. Moreover, the number of guest nights increased by 5.3% and approached 38.5 million. This upward trend is expected to continue, as the holiday season and festive programmes traditionally drive significant tourism activity in the last months of the year, further enhancing the country’s reputation as a vibrant, all-season destination.

Current Cypriot travel packages often include Budapest together with cities like Prague, Bratislava and Vienna. However, Budapest’s unique offering positions it as a compelling standalone destination and by promoting Hungary’s diverse attractions its status on the tourism map will be elevated, encouraging travellers to explore the whole country’s rich heritage and natural beauty independently. Additionally, as mentioned before, many Cypriots have pursued higher education in Hungary and they have become familiar with Hungarian traditions and culture, so this educational bond also serves as a solid foundation for expanding tourism, highlighting the potential for deeper collaboration between our nations.

What is Hungary’s stance as regards the Cyprus problem?

Hungary’s position on the issue is clear and unchanged. Hungary fully supports the Republic of Cyprus, stands up for the country’s sovereignty and territorial integrity and is committed to ensuring that a solution must be within the agreed framework defined by the resolutions of the UN Security Council, in the framework of a bizonal, bicommunal federation with political equality. Personally, I hope that the negotiations on the Cyprus settlement will resume soon and lead to results. Hungary also contributes to ensuring peace in Cyprus, through a Hungarian contingent that has served in the UNFICYP mission since 1993.

From 1 July to 31 December 2024, Hungary held the Presidency of the Council of the European Union. How do you assess its results?

Hungary assumed the Presidency of the Council of the European Union at a pivotal time, characterised by institutional transitions and a complex regional and global environment. The Council made significant progress on each of the seven priorities set out in the Hungarian Presidency’s programme. One of the most important priorities was to ensure a consistent, merit-based enlargement policy. We strongly support the enlargement of the European Union and we firmly believe that enlargement is the most effective instrument for promoting stability in both the region and the EU itself.

Strengthening the credibility of the EU’s enlargement process is, therefore, of paramount importance. Moreover, we advocate that countries which successfully implement the required reforms should be allowed to advance on their path toward accession. A key achievement of the Hungarian EU Presidency was the intergovernmental conference with Albania on 15 October 2024, which led to the opening of Cluster 1 negotiating chapters. Another important development was the launch of the implementation of the new Western Balkans Growth Plan and Facility: the EU’s adoption of the reform programmes of five Western Balkan countries has opened the way for them to benefit from the Reform and Growth Facility.

This assistance will support the integration process of Albania, North Macedonia, Serbia, Montenegro and Kosovo (and, hopefully in the near future, Bosnia and Herzegovina). Montenegro and Albania became members of the Single Euro Payments Area (SEPA) on 21 November 2024. This was a significant milestone as these two countries were the first in the region to join the SEPA.

What other highlights would you note?

Under our Presidency, the EU-Turkey High Level Trade Dialogue took place on 8 July and, on 29 August, for the first time in five years, the Turkish Foreign Minister attended an informal Foreign Affairs Council (FAC) meeting. On 4 November, Coreper Ambassadors held a discussion on Turkey and the EU–Turkey Customs Union Joint Committee (CUJC) took place on 4-5 December 2024. Regarding Romania and Bulgaria, land border controls were lifted on 1 January, 2025, making them full members of the Schengen Area.

This is a result of historical significance, which was already a priority during our previous Presidency in 2011. Another notable event was the 5th Summit of the European Political Community, which took place on 7 November in Budapest and was the largest diplomatic event in Hungary’s history. It was attended by 42 states, the European Council, the European Commission and the European Parliament as well as the Council of Europe, the OSCE and NATO. The main themes of the meeting were economic security (including connectivity) and migration. And last but not least of the achievements of the Hungarian EU Presidency was our hosting of an Informal European Council Summit on 8 November, focused on enhancing European competitiveness.

The Summit concluded with the adoption of the Budapest Declaration, sending a signal to EU institutions that member states view competitiveness as an urgent, overarching priority for the next five years. The meeting was a notable success, as competitiveness is a shared concern for all member states. By tackling this topic, we initiated a discussion that received strong and unanimous support across the Union.

On the subject of European competitiveness, can you elaborate on how Europe can become more attractive, especially in comparison with the US and other international powerhouses?

As I have just noted, one of the most significant milestones of our Presidency was the adoption of the Budapest Declaration. The purpose of the declaration is to set out the main guidelines for strengthening European competitiveness during the next institutional cycle. It reflects a political commitment at the highest level to take decisive measures to address this critical issue. In the Budapest Declaration – as a result of the debate on the new European Competitiveness Deal – the Heads of State and Government identified 12 key areas of action, including the strengthening of the Single Market, the renewal of industrial policy, innovation, and the financial aspects of competitiveness challenges.

The adoption of the Declaration clearly demonstrates that there is consensus among Member States on the necessity of strengthening European competitiveness. The significance of the Budapest Declaration lies in its horizontal approach, as it requires the integration of competitiveness considerations across all EU policy areas. Additionally, it sets specific deadlines for EU institutions (primarily the European Commission) and establishes a framework for regular follow-up by the European Council. It’s important to see that the leaders of the European Union are determined to ensure our common economic prosperity, boost our competitiveness, making the EU the first climate-neutral continent in the world and ensuring the EU’s sovereignty, security, resilience and global influence.

The aim is to make the Union more competitive, productive, innovative and sustainable, building on economic, social and territorial cohesion, and ensuring convergence and a level playing field both within the Union and globally. The Draghi and Letta reports provide a solid foundation on which we will ambitiously advance our work. It is imperative that we urgently close the innovation and productivity gap with our global competitors, as the United States.

What other specific measures are required?

To boost our competitiveness, all instruments and policies must be harnessed in a comprehensive and coherent manner at both EU and Member State level. We need to intensify our efforts to ensure a fully functioning Single Market and unlock its full potential as a key driver for innovation, investment, convergence, growth, connectivity and economic resilience. In this regard, we have to take decisive steps towards a Savings and Investments Union by 2026 and make urgent progress on the Capital Markets Union. Further progress is also needed to complete the Banking Union. We have to ensure our industrial renewal and decarbonisation, allowing the EU to remain an industrial and technological powerhouse.

Also, the EU has to increase its defence readiness and capabilities, in particular by strengthening our defence technological and industrial base accordingly. In this respect, the High Representative and the Commission will present without delay developed options for public and private funding. Europe is lagging behind its global competitors and it is vital to improve the productivity – and thus the competitiveness – of the Union and its Member States, and to stimulate growth. It is in our common interest to address the effects of the difficult economic circumstances of the recent years, such as high inflation, increased public debt, high energy prices, the fragmentation of international supply chains, lower European productivity and slower economic growth compared to our competitors, and to put the EU economy back on an upward trajectory.

(Photo by TASPHO)

This interview first appeared in the January edition of GOLD magazine. Click here to view it.