Budapest (MTI) – If Hungary wants a competitive economy and society, it is essential that the government increase wages, and they should begin with the public sector, Jozsef Tobias, leader of the opposition Socialist Party said on Thursday.
Speaking at a party meeting centered on wage hikes, Tobias criticised the government for sticking to “neoliberal economic policies supported by the Socialists over the past 20 years”. He said that “the world has changed” and failure to invest in human capital “will once again lead us into a trap”.
“Wage hikes generate an increase in performance and quality, and, in turn, economic growth,” Tobias said, adding that his party would continue to campaign for wage hikes.
Hungary is falling behind Europe and the policies of the last five years have only led to a rise in the working poor, Tobias said. Gone are the days when low wages boost a country’s competitiveness in Europe, the Socialist leader added.