Hungary has fallen into a three-sided trap, but Europe may still be able to save itself.
More than four-fifths of the European Union’s imports are low-risk, but certain energy carriers, electronic components, and raw materials can lead to geopolitical conflicts. A Carnegie Europe analysis shows that Brussels should not withdraw from globalization, but rather recognize the potential for trade relationships to become politically sensitive. This is particularly difficult for Hungary, as it has close ties to Russian energy, the German automotive industry, and Asian battery supply chains.
More than four-fifths of the European Union’s imports are low-risk, yet certain energy carriers, electronic components, and raw materials could sustain a geopolitical conflict throughout the entire economy. According to a new analysis by Carnegie Europe, Brussels does not necessarily need to withdraw from globalization, but rather identify where a trade relationship can become a political weapon. This is a particularly sensitive issue for Hungary: the country is simultaneously dependent on Russian energy, the German automotive industry, and Asian battery supply chains.
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