PM Orbán talks about incredible minimum wage rise, euro adoption and more helicopter money

Prime Minister Viktor Orbán, in an interview released today but recorded earlier, shared his views on Hungary’s potential euro adoption, whether Mihály Varga, the central bank governor, is right to protect the forint’s exchange rate, upcoming wallet-friendly programmes before the 2026 elections, and when the promised major economic upswing, announced last January, might finally begin.

Orbán stated that low taxes represent the best economic policy during his Monday interview on the Economx Money Talkspodcast with the president of the Hungarian Chamber of Commerce and Industry. He discussed tax cuts necessary for double-digit minimum wage increases, the possible expansion of the small taxpayers’ scheme (KATA), and addressed what he described as Brussels-driven plans for tax hikes promoted by the so-called Tisza Party.

Encouraging people to work

The Prime Minister emphasised that a nation’s future depends on whether people want to work. If the government takes away the money people have earned, they simply will not work. He insisted people should be left alone—or better yet, encouraged—to perform, benefiting themselves and the entire country. This is why, he said, low taxes are the best economic strategy.

Orbán noted that the ideal income tax rate would be zero, which Hungary cannot yet afford, but said that relief up to a zero rate is already provided for valuable groups such as families and mothers.

Housing, tax cut, and affordable loans before the 2026 general elections

Regarding recently announced measures such as the fixed 3% business loan and family support initiatives, including the Home Start Programme and tax exemptions for mothers, the Prime Minister said this year’s and next year’s budgets guarantee the financial backing for these plans.

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He warned that spending on welfare or social benefits requires careful management, but supporting the economy reduces risks. Ideally, as much money as possible should remain in the economy to boost productivity.

Incredible minimum wage rise

On the minimum wage hike, Orbán said negotiations are under way regarding next year’s salaries, with both unions and employers signalling that the government must reduce taxes on private enterprises to allow for a double-digit minimum wage increase.

When asked if a cut in social contribution tax would lead to such an increase, Orbán admitted, “It sounds harsh, but that’s roughly the situation.” Some tax reductions will definitely happen.

Discussing the KATA tax for sole traders and small businesses, he recalled that while it was initially a good idea, its expansion led to widespread abuse and tax evasion, which had to be corrected, causing political uproar. However, talks are ongoing about possibly reopening or broadening KATA with safeguards to prevent further misuse.

On VAT, Orbán said he currently does not see scope for cutting VAT beyond items already removed from the standard 27% rate. If more money were to flow through the Hungarian economy, priority would remain on income tax cuts benefiting families.

Economic flying start only delayed

Orbán called it “economic suicide” to rely on consumption for growth, insisting that the focus should instead be on technology, investment, development, and work. Consumption, he said, should remain at a level where people can enjoy life in their country and afford essentials, but it should not be treated as a primary economic tool.

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He acknowledged that the promised 2025 breakthrough did occur, but only from 1 July, not from January. He highlighted programmes such as the fixed 3% business loans, 3% housing loans for first-time buyers, a 50% increase in family tax relief, income tax exemption for mothers with three children, and tax-free maternity benefits as the real take-off initiatives, regardless of disappointing overall macroeconomic figures.

Orbán stressed that, as Prime Minister, people expect to own their own home, have rising wages, and receive pensions. Failing to satisfy these expectations would lead to economic and social instability, even upheaval. He guaranteed housing for everyone, wage increases, and a secure pension system.

Opposition tied to Brussels’ interests

On tax policy, Orbán claimed that no Hungarian opposition party, especially those on the left, represents national interests, but rather Brussels’. He called the Tisza Party a “Brussels project” destined to implement EU-demanded tax rises if Hungarians allow it.

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Unchanged stance on euro adoption

Regarding the euro, Orbán said the government has no exchange rate target. He noted that government-backed loans would be unnecessary if central bank chief Mihály Varga lowered the base interest rate, as businesses could then access cheaper market loans. However, he praised the National Bank president’s prudence and efforts to keep the forint stable.

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On adopting the euro, Orbán was clear: “It won’t happen on my watch.” He believes the EU is currently in a phase of disintegration and is “falling apart”, so he does not want to tie Hungary’s fate more tightly to the Union. Adopting the euro would do just that. Unless radical changes occur, the EU will remain merely a fleeting chapter in Hungary’s history.