Fidesz: NATO shifted its stance on war in Ukraine and it’s dangerous

It is “concerning” that NATO has shifted its policy direction on the war in Ukraine and is preparing “to get involved” in the conflict on Ukraine’s side, the head of the Prime Minister’s Office said on Thursday.

NATO in the Ukraine war

Gergely Gulyas told a government press briefing that NATO before had only been commenting on war-related developments in Ukraine but had not become “an active participant” in the conflict. The alliance had also rejected the possibility of intervening in the war, citing a threat of a third world war, he added.

“But there has been a sharp and negative shift taking place” in NATO’s policy, said Gulyas. He said that the draft of a planned NATO-Ukraine mission had become known to the public, suggesting that NATO would “get involved in the conflict on Ukraine’s side”. NATO plans to set up a 100 billion dollar fund for supporting military training and coordinating weapons deliveries, Gulyas said.

“Hungary, as a NATO ally, is seriously concerned over the matter because Hungary considers NATO a defence alliance,” Gulyas said.

At its meeting on Tuesday, the government analysed the international political and military situation, he said. “We are in a very dangerous moment,” said Gulyas, adding that developments in global politics in the next six months would be crucial in deciding whether the world and Europe would be heading towards war or peace.

Gulyas: EP made ‘wrong decision’ by approving new migration pact

The European Parliament has made the “wrong decision” by endorsing the new migration pact, the head of the Prime Minister’s Office said.

Gergely Gulyas told a press briefing that the fact that the legislation had passed “with only a 55-56 percent majority in the EP where 70-80 percent of lawmakers are pro-migration” showed “how extremely bad the proposal” was.

“Central Europe shouldn’t have to suffer the mistakes of western Europe’s social development,” Gulyas said, stressing that Hungary will not accept any European decision that would “shift this problem onto central Europe and Hungary”.

Hungary, he added, rejected the mandatory redistribution of migrants and the rule of having to pay compensation instead. “This decision can’t be implemented in its current form, it won’t help Europe or the societies suffering from migration,” he said.

Gulyas said Hungary would challenge any European decision in order to protect itself from the harmful effects of migration.

Nagy: Govt to introduce five-point action plan in agriculture

The government has decided to introduce a five-point action plan to handle the situation that has developed in Europe’s agricultural sector, Istvan Nagy, the minister of agriculture, said on Thursday.

Nagy told a regular government press briefing that comprehensive reporting obligation would be introduced on all products whose imports from Ukraine are banned, no matter what country they originate from. The government has also made arrangements to ensure that area- and livestock-based subsidies would be paid by the State Treasury by May 31 this year. Nagy said the government has also decided to provide by 2026 an additional up to 45 billion forints (EUR 115m) for the Agrarian Szechenyi Card scheme.

The government will increase to 90 percent the tax refund threshold on diesel fuel used in agriculture which Nagy said could leave an annual 1 billion forint extra support with farmers.

“In the current situation the role of government help will increase in the sector, in areas including increased transparency on imports, subsidies, credit financing and future developments,” he added.

Intervention is needed as a result of the serious excess supply and significant drop in prices in the sector’s market, he said. The reason is a European Union decision made in 2022, under which Ukraine is allowed to export agricultural products to the EU duty-free and without restrictions, he said.

“Ukrainian products have entered the markets of EU countries in large volume, significantly limiting the sales opportunities of the individual member states,” the minister said, adding that “it seems obvious that Brussels and the European Commission have let down European farmers and instead support the Ukrainian oligarchs”.

Varga: Hungary’s economic growth forecast at 2.5 pc this year, 4.1 pc in 2025

According to the government’s forecast, Hungary’s economy will grow by 2.5 percent this year and by 4.1 percent in 2025, the finance minister told a government press briefing on Thursday.

Given the war situation, the EU is emerging from the crisis at a slower than expected pace, the German economy has been ailing for quite a while and export markets are also weak, which is why Hungary has planned its macroeconomic path for such a situation, Mihaly Varga said. Hungary’s economy will return to a growth-path this year with the country’s GDP expected to increase by 2.5 percent, he said.

Economic growth is expected to accelerate in the second half of 2024 which will favourably impact the central budget, Varga said, adding that a 4.1 percent GPD growth projected for next year was well-based.

Gergely Gulyas, the head of the Prime Minister’s Office, told the same press briefing that the government would submit next year’s draft budget to parliament after Nov. 5.

Finance Minister Mihaly Varga said that a decision would be made when the budget is submitted in the autumn concerning the personal tax exemption of mothers with three children.

He also said the rules for the pension premium were clear, and the extra pension would only be paid out if economic growth reached 3.5 percent or above.

Concerning a meeting with central bank governor Gyorgy Matolcsy in March, he said the European Central Bank had approved the amendment of the law on the central bank, and further consultations were needed.

He also said that the net price of fuel in Hungary was mid-field in regional comparison. “Instead of discussing taxes, production costs must be reduced in order to further reduce prices,” he said. He also said that efforts were being made to help growth from the side of energy costs.

In response to a question about reducing the excise tax, he said the amendment of tax laws was not on the agenda, adding: “The government will assess all the circumstances but does not plan to change the main structure of tax regulations.”

Concerning the 15 percent increase in internet and phone fees, he said while inflation was continuing to fall, price developments also depended on market trends, but the government would continue monitoring prices.

Concerning hospital debts, he said the government was continually monitoring the issue and consultations were being held with the interior minister.

In response to additional questions, he said that VAT revenues had increased against expectations and current projections showed that household consumption would increase by 2.3 percent and overall consumption by 2.7 percent this year.

In response to a question concerning a projected rise in local government deficits to 108 billion forints overall this year, he said the government had a single task: to ensure the stability of local government finances. Any requests for loans would be assessed by the interior ministry, and the request would be supported if the local government in question were able to repay the loan, he added.