Hungarian Prime Minister Viktor Orban attends a news conference in Budapest, Hungary, October 4, 2016. REUTERS/Laszlo Balogh BUDAPEST (Reuters) - The European Union should seek a new deal with the United States as the free trade agreement has failed, Hungarian Prime Minister Viktor Orban said on Monday.

Orban also told an economic conference that Europe should let go of the "illusion of federalism."

He said seeking new agreements would be a milestone on Europe's path to improved competitiveness.

(Reporting by Krisztina Than and Gergely Szakacs; Editing by Dominic Evans)