During the 1920s Varga would emerge as the Comintern’s leading economist, authoring all reports on the international economic situation and participating in all debates on the Comintern’s strategy. In the meantime, he developed the theory of the general decline of capitalism and the imminent breakdown of the

capitalist system. Varga’s expertise was widely acknowledged. He reported to the Third (1921), Fourth (1922), Fifth (1924), Sixth (1928) and Seventh Congress (1935) of the Comintern. Apart from Lenin’s imperialism theory, he remained profoundly influenced by Rudolf Hilferding and Rosa Luxemburg as well. Finally, he succeeded in staying out of all factional struggles.