Prime Minister Viktor Orbán said an “economic cold war” was “the worst thing that could happen” to Europe and Hungarians in a weekly interview with public radio on Friday.
Orbán said an economic cold war presented a “huge danger” to Hungary’s export-oriented economy, and that the government was adopting a policy of economic neutrality to protect families’ standard of living.
He noted that the European Union would take a decision in the course of the day on punitive tariffs on Chinese goods, a measure Hungary opposed. He warned that the measure would harm the EU’s own competitiveness, adding that even the Germans were opposed to the step.
He said a cabinet meeting earlier in the week had discussed measures to support the policy of economic neutrality.
Photo: MTI
Economic growth should be 3-6%, Orbán says
Orbán warned of attacks against the government’s policy of economic neutrality, with the aim of pushing the country down the path of blocs, “where there’s no growth, no development and no future”.
He said Hungary didn’t want to return to a time in which the world was divided into blocs, adding that a policy of economic neutrality could boost Hungary’s economic growth to 3pc-6pc. He added that decoupling the economies of the East and West would make it more difficult for Hungary to find markets for its products, and that would impact workplaces and wages.
He said Hungary wanted to trade with both blocs, without being “squeezed into” any one and would apply its policy of economic neutrality to markets, investments, financing and energy.
He added that the success of the government’s policy would be its validation.
Ambitious wage increase plans
Assessing the economy, Orban acknowledged that some sectors were in a difficult position, while others were doing well. He added that the tourism sector had finished a record year and the food industry was doing well, but the automotive industry was “sputtering” as export markets in the West stagnated.
Orbán said Hungary’s minimum wage could reach EUR 1,000 per month in the coming 2-3 years, while the average wage could rise from around HUF 600,000/month (EUR1,500) to HUF 1m (EUR 2,500).
He noted that talks were ongoing between employers and unions on an agreement on minimum wage rises. He added that the economy minister had been tasked with seeing an agreement was reached by year-end.
He said the agreement should extend for several years and result in the average wage reaching HUF 1m/month at the end of the period. He added that higher wages were the only way to manage higher prices in the long term.
He said the government faced a “dilemma” with regard to cutting taxes and the impact on public sector wages. He explained that if employers’ tax burden was reduced, they could afford to pay their workers more, but public sector wages could only rise if there was more tax revenue.
Labour shortage in Hungary
He said public sector wage growth wasn’t keeping pace with wage rises in the business sector, with the exception of sectors, such as healthcare and education, in which the government had launched wage programmes.
Orbán said there were now 60,000-70,000 unfilled positions in Hungary, more than the number of people who could and wanted to fill them, while the government had brought the unemployment rate down from 12.5pc when it came to power. That “fantastic success” is “taken for granted” today, he added.
He said the quality of Hungary’s labour force was a draw for investors.
Hungary’s EU presidency promoting peace, Orbán says
Hungary, as part of its EU presidency, is striving to promote peace, Orbán said in an interview to public radio on Friday. “We have a peace mission,” he said. If a broader war emerges in the Middle East, the effects would be felt immediately as the world economy would become cautious, putting downward pressure on the forint, Orbán said.
What happens in the world, he said, was not only an important economic consideration, and a war in the Middle East could also affect the country’s security, he said, noting the “large number of citizens of Jewish origin” in Hungary affected either directly or indirectly.
Orbán noted that he had convened the National Security Cabinet to discuss how to ensure the security of all Hungarian citizens, regardless of their origin.
Meanwhile, referring to the Friends of Peace international group established recently, Orbán said that when Hungary took over the EU presidency, promoting peace as a Christian spiritual consideration and state interest had been “unavoidable”.
Storm-like Hungarian EU presidency
“We began with a storm: Kiev, Moscow, Beijing, Donald Trump,” he said, adding that the peace strategy that then ensued was based on the understanding that the warring parties had no intention of making peace with each other.
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- Putin and Orbán in July in Moscow. Photo: FB/Orbán
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- Photo: FB/Orbán
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- Viktor Orbán and Chinese President Xi Jinping. Photo: FB/Orbán
He said that if, as it appeared, the belligerents were unwilling to make pace, then an agreement between key international forces was needed to establish a world policy that could guide the warring parties in the direction of peace.
Hence, the Friends of Peace was founded “at our initiative, alongside Brazil and China”, Orbán said.
Meanwhile, Orbán said conflicts due to migration would “tear the European Union apart” and “paralyse its operations … if Brussels does not come to its senses and changes its policy that supports and attracts migrants to a policy that … that protects the border.” He added that if Brussels carried on “tormenting Hungary with all kinds of punishments” in connection with migration, then “we’ll transport the migrants to the main square [in Brussels] by bus…”
Brussels bureaucrats destroying the life of the people
European people, he said, would no longer tolerate “Brussels bureaucrats in their protected bubble” forcing a policy on Europe “that destroys the lives of ordinary Italian, German, French and Hungarian people”.
The prime minister said this is why Andrej Babis won in Czechia, why the Freedom Party in Austria, and why the AfD was performing well, why Marine Le Pen was “at the front gate”, and why the Italian prime minister had won.
On the domestic front, Orbán announced that families with children would see their situation improve noticeably in the next two years as the government planned to double tax relief for children in 2025. He said the measure was planned to be phased in two steps next year. “I’m not going to compromise on this,” he added.
Read also:
- Hungarian forint doing something unprecedented: further slip expected – read more HERE
- Orbán cabinet would build new dormitories, boost economy, review rental and Airbnb regulations in Hungary
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5 Comments
Well at least the EU hasn’t been in the way of the enrichment of his own family and friends!
The Real Person!
The Real Person!
If Orban had promised “incredible inflation” in 2020 it would have been one promise that he actually could keep. This government is the purveyor of empty promises counting on propaganda and a nation of sheep to keep it in power.
The Real Person!
The Real Person!
Where is the lie?
The E.U. was supposed to be a machine to facilitate FREEDOM: freedom to trade and freedom to work.
Instead, people unelected even by the voters of the countries they come from, let alone any others, are ordering sovereign nations to allow millions of hostile invaders to live in them because those are the orders of Soros, the W.E.F., etc. as well as to attach bottle caps to bottles because some sea turtle somewhere choked on a cap.
It would be laughable if it was not so sad and dangerous.
The Real Person!
The Real Person!
Victor Mihaly. Orban – the inflexibility, through the WRONGFULNESS of Economic & Financial Policy’s, undertaken, set in place pre the outbreak of Covid, by design of the “Dud” – Finance Minister – Mihaly Varga and the Prime Minister – the Orban – Fidesz Government of Hungary, the WORSENING position on-going of the Hungarian economy, this PROMISE of Orban, again an absolute “torrent” of propaganda CRAP.
Orban – his Finance Minister – Mihaly Varga, that have DRIVEN the Economy of Hungary to a position resembling a CHAOTIC Disaster. There is no flexibility – no room for a positive movement in the DESTROYED fabric of the Hungarian Economy, no logical Economic and Financial theory’s that will ALLOW the “infamous” Prime Minister – Victor Mihaly. Orban, nor his “ill fated” Disaster of a Finance Minister – Mihaly Varga, to meet the PROMISES of Orban.
Orban & Varga, to achieve the PROMISES – in Hungary, which is a HIGH taxing country, in it’s tax process – personal and company, through the “double dipping” tax system – of VAT at 27% the highest of the European Union, and then personal tax – this PROMISE is an absolute example again, of propaganda FALSENESS out of the Orban – Fidesz Government of Hungary.
Orban – his RISING Government Debt in Borrowings from China and Russia – HORRENDOUS.
Orban – his DEBT’s growing HUMONGOUSLY – through Fine’s to the European Union, which give STRONG indication more are to come – HORRENDOUS.
The DEBT servicing FACTOR of the Orban – Varga – “Stuff up” of the Hungarian Economy, that GROWS daily, the “other side” – the revenue side, what’s coming into the Orban – Fidesz Governments – Bank Acount, is HUMONGOUSLY under in amount – revenue received, what is factually required to service pay these Government Debts.
Debt of the Orban – Fidesz Government, and they can’t BORROW – if they are of “Sound Mind” – additional funds, which would be a PERILOUS cataclysmic “Final” curtain to Hungary, there options ARE extremely LIMITED near of non existence, other than “hitting” the population of Hungary, through increase of personal and company taxes.
Orban – Varga – the PICTURE is CLEAR – that the growing worsening state position of the Hungarian Economy, the word INVESTMENT – into the needs, the DAILY needs of life in Hungary, has been eradicated, by the STUPIDITY of Economic & Financial Policy’s – of Victor Mihaly. Orban and his “Dud” of a Finance Minister – Mihaly Varga and the entire “Heinous” Fidesz Government of Hungary, that have delivered us to the SHAMBLES, the MESS worsening – we find our country Hungary.
Darken skies grow over Hungary, through the name Victor Mihaly. Orban and his Fidesz Government.
NOTHING is GOING to get CHEAPER in Hungary.
The Real Person!
The Real Person!
Hungary sneezes, the EU yells pneumonia. Data can be manipulated. The EU is so power hungry that it will do everything and say everything to hurt the country. Hungary’s friends are Russia and China and US republicans headed by former President Trump.
It is time to put the brilliant Hungarian minds to solve Hungary’s economy without EU companies’ participation and exit the evil dictatorship.
By the way, all pro-EU and anti-Hungarians should continue to enjoy socialism, illegal migration by being migrants under EU dictatorship in countries like Belgium, Denmark, Luxemburg.