Has the Hungarian government entered an austerity spiral?

The Hungarian government has “entered a spiral of austerity “, the spokesman of the opposition Democratic Coalition (DK) said on Monday, in response to measures announced by the head of the Prime Minister’s Office.

The Hungarian government has announced “yet another austerity package”, Balázs Barkóczi told an online press conference, commenting on announcements in today’s government press briefing. He insisted that a new tax dubbed “defence contribution” was an old form of tax under a new name.

He said that the government was “pretending” to levy a tax on banks and multinational companies while knowing that they would pass that new burden on to clients — “as they always do”.

“Only the left wing can provide a way out of this situation, by increasing wages and pensions, pursuing a predictable economic policy, wiping out corruption and introducing the euro,” Barkóczi added.

Ruling Fidesz said in a statement in response that forces on the left disliked multinationals and banks “being made to pay” as they represented the interests of their foreign sponsors. “The pro-war left has been stuffed with foreign money for years. They represent the interests of their sponsors, not those of the Hungarian people,” said Fidesz.

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