Poland

Polish-Hungarian Summer University participants adopt joint declaration on Europe’s future

Participants of the Polish-Hungarian Summer University in Krasiczyn adopted a joint declaration on the future of Europe on Wednesday, urging a fundamental reform of the European Union.

In the declaration, they emphasised their sense of responsibility for their nations, the central European region and Europe as a whole, and underscored their commitment to Europe’s Christian roots.

The participants expressed their support for fundamental values such as the importance of the family, democracy, the protection of human dignity and the freedom of expression by law and the importance of social dialogue.

The participants called for a strong Europe and a fundamental reform of the EU, which they said should take into consideration the views of young people in central Europe.

The university students vowed to work together at political and civil forums for a “free, secure, strong and fair Europe” that is focused on recognising their own interests, values and problems instead of fuelling ideological polarisation and “waging a culture war”.

Prior to signing the declaration, the university students took part in a panel discussion on the future of Europe which was also addressed by Hungarian human resources ministry deputy state secretary Zsófia Rácz and former Polish house speaker Marek Kuchcinski.

Referring to recent criticisms levelled at Poland and Hungary in the EU, Rácz said the bloc had originally been established so that its member states could engage in sensible debates when they disagree rather than “attack each other”.

The five-day event, which opened on Monday, is focused on the future of Europe and is being attended by some 150 Polish and Hungarian students.

It is being organised by the Waclaw Felczak Institute of Polish-Hungarian Cooperation.

Polish Hungarian friendship
Read alsoJustice minister: Poland, Hungary represent common sense in EU

Justice minister: Poland, Hungary represent common sense in EU

Polish Hungarian friendship

Poland and Hungary represent common sense in the European Union and the exchange of views among their youth contributes to shaping a strong Europe, Justice Minister Judit Varga said in a video message addressed to participants at the fourth summer university in Krasiczyn, in southern Poland, on Tuesday.

Young people play a key role in preserving the friendship between Poland and Hungary, Varga said, calling the two countries’ friendship “unparalleled in European history”.

The cooperation between Poland and Hungary contributes significantly to the changes taking place on the European continent and in European civilisation, the minister added.

Poland and Hungary’s common sense is desperately needed in an EU “whose institutions are flying the goal of becoming an empire on the star-studded flag”, she said.

Concerning the ongoing conference on the future of the bloc, Varga said it was an opportunity for Poland and Hungary to each represent their common sense and “say no to deepening integration” and remind the rest of the bloc that the principle of the rule of law “cannot be used as a tool for political blackmail”.

The EU is in need of constructive and sound dialogue, Varga said, underlining the importance of the Krasiczyn summer university giving young people the opportunity to exchange views on various issues.

She urged participants to “be the guardians of values” and preserve the belief in the idea of a diverse and strong Europe based on sovereign states.

The five-day event, which opened on Monday, is focused on the future of Europe and is being attended by some 150 Polish and Hungarian students. It is being organised by the Waclaw Felczak Institute of Polish-Hungarian Cooperation.

bullet-train high speed railway
Read alsoSpeed railway system to link Poland, Slovakia, the Czech Republic and Hungary

Central European nations respond to inflation, set their own tone on monetary policy 

National Bank of Hungary

By: Gerelyn Terzo of Sharemoney

The European Central Bank (ECB) may be in no hurry to raise interest rates, but some bloc member countries are starting to take matters into their own hands. Policymakers in countries where inflation has begun to rear its head are responding with central European nations out front.

The message from “mission control” is to remain calm, as inflation is just passing through. ECB President Christine Lagarde recently stated that a more aggressive monetary policy would be “premature” and would put the post-COVID-19 economic recovery at risk. ECB board member Isabel Schnabel recently stated that she is not expecting “any excessively high inflation.” Several central banks in the bloc see it differently, however.

The ECB recently revised its consumer price outlook, attaching a medium-term symmetric target for an inflation rate of 2%. It is a target that will not easily be attained, according to J.P. Morgan Asset Management strategists. The ECB’s previous goal was below but near 2%, which left policymakers wanting greater clarity.

In the interim, a handful of central European central banks are tackling inflation head-on amid clear-cut signs of rising interest rates. The region may expect a surplus of inflationary and interest rate-related information in the eurozone by raising rates as prices inch higher.

‘Stubbornly High Inflation’

Capital Economics characterized inflation in the Central European region (including Austria, Croatia, Germany, and others) as “stubbornly high,” a situation that has only been exacerbated by pricing pressures that continue to increase. As a result, economists at the firm are predicting a one-two punch of persistently higher inflation and hawkish monetary policy.

Inflation in Hungary and Poland, in particular, has already surpassed each of these two country’s target rates of 3% and 2.5%, respectively. Meanwhile, central bankers and the governments are, in some cases, finding themselves at odds when it comes to interest rates, inflation, and monetary policy.

Hungary Breaks With Tradition

In June 2021, Hungary took an action they have not made since 2011: The central bank raised the economy’s benchmark rate by 0.9% to 0.6%. However, the rate hike was expected and was made to combat inflation in the euro area. While consumer price increases persist, Hungarians will have to get used to tightening monetary policy in the country as policymakers plan to continue on this path for the foreseeable future.

Hungary’s central bank was a trailblazer for raising rates in a post-pandemic world in the eurozone. Policymakers have tipped their hand and may continue to increase rates on a monthly basis rather than the usual quarterly pace.

Economist Natalia Gurushina of VanEck said on Twitter that rate hikes could come sooner than later after the Consumer Price Index (CPI) for June increased from 5.1% to a higher-than-expected 5.3%, versus estimates of 4.9%. Prices on everything from groceries to accessing public toilets have skyrocketed by double-digit percentages.

Meanwhile, all is not well between central bankers and the administration. Gyorgy Matolcsy, who is at the helm of the Hungarian National Bank, recently urged lawmakers to rein in fiscal measures, with an eye toward slashing the country’s deficit by more than half, to 3% of GDP in 2022, from an anticipated 7.5% in 2021. Matolcsy believes the government’s spending intentions are a “mistake.”

Meanwhile, Prime Minister Viktor Orban is on the other side of the spectrum and has his sights set on lowering taxes for households with kids to prepare for next year’s election. He has not minced words about monetary policy and has called for “cautious and measured” interest rate hikes should they occur.

Poland an Outlier in the Region

Poland was thought to be on the cusp of raising interest rates, though it has yet to pull the trigger. Nonetheless, Poland’s inflation is hovering higher than the central bank’s target range. Headline inflation in the country has been on the rise, having climbed 0.4 percentage points to 4.7% in May vs. April levels. In June, inflation declined modestly to 4.4%. The National Bank of Poland (NBP), the country’s central bank, has attached a medium-term inflation target of 2.5% based on the middle of the range. 

At its July meeting, the NBP left the main interest rate alone at 0.1%. Meanwhile, borrowing costs remain at all-time lows as policymakers attempt to get the economy back on track after the pandemic.

Despite rising inflation, NBP Governor Adam Glapinski maintains that inflation in the country won’t last. According to Glapinski cited by the Financial Times, rising inflation is being fueled by regulatory and supply dynamics. On the other hand, Capital Economics sees it differently and forecasts that Poland’s central bank will turn more hawkish next year and begin to raise rates in mid-2022.

Czech Republic Not Wasting Any Time

The Czech Republic is less sanguine about the state of inflation and decided to raise its key interest rate in June. The central bank in the country raised the two-week repo rate from 0.25% to 0.50% and increased the Lombard rate to 1.25% from 1%.

The country’s GDP narrowed less than expected in Q1 2021 even though lockdown measures were still in place due to the pandemic. Pricing pressure also played into the rate decision, and policymakers revealed that they will increase rates further two more times or more before year-end. The central bank is being cautious amid a more robust economic recovery than predicted coupled with too few workers to fill the demand. Policymakers are looking to thwart the spread of inflation, fueled by rising commodity costs and supply chain constraints, to consumers.

Central European Outlook

Central European countries are clearly battling rising consumer prices, which is something that families will have to deal with. Central banks are starting to respond to the conditions with higher interest rates in an attempt to entice savers, fuel cheaper borrowing and thwart a red-hot economy, but it is a precarious situation.

Meanwhile, central banks in the region look to tighten monetary policy, something that could derail those plans is the spread of the highly contagious COVID-19 Delta variant. The Delta variant is already triggering further lockdown measures in southern Europe in countries such as Spain so far. It is up to the governments and civilians to toe the line between bolstering the economy while maintaining proper social distancing guidelines. 

A Polish driver has been living in his truck fallen into a ditch in N Hungary for a week! – UPDATED

He fell into a ditch one week ago, but nobody could help him. Therefore, he has spent the last seven days in the cab of his truck. Locals bring him food and drinks, and a movement started to help him.

According to index.hu, the Polish truck fell into a ditch near road Nr. 3 last Sunday. Since then, the driver has been waiting to be rescued, but it seems that nobody will come to his aid. According to Népszava, the driver would have transported tomatoes from Poland to Bulgaria.

But how can Hungarian authorities leave him there? Why do they not help?

In short, there is no Hungarian rule stating what to do in such situations with a vehicle that suffered an accident. Police and emergency services highlighted to Index that they must interfere if the truck blocks traffic or is in a place where it might cause accidents.

In those situations, they ask the owner whether they can move the vehicle or not. If not, they do the job but charge the cost of the operation to the owner.

However, in the case of the Polish citizen, he is not the driver of a company. Moreover, the vehicle ended up in a ditch

probably because of the malfunction of the brake system.

The truck belongs to the driver, so he did not have anybody who could help him. Furthermore, he did not have assistance and did not have enough money to pay the cost of the rescue, which could reach millions of forints (EUR 3-5 thousand).

Today, the firefighters turned off all the power in the vehicle. The owners already took the cargo and transported it with another vehicle. Since the truck does not block traffic,

a Hungarian company will take it out from the ditch.

The story of the Polish driver spread fast in many local Facebook groups; a lot of people offered money to him. Moreover, the Magyar Rescue 4×4 already arrived there.

However, the Polish driver nearly gave up. He suffered severe injuries in the accident, and

he was also at a low point mentally.

Two of his driver friends came to help him and provided first aid for his injured hand. However, they said to RTL Klub that their colleague’s state is more severe than previously thought. Therefore, an ambulance took him to the Miskolc hospital on Saturday morning, from where he already left.

 

UPDATE (08. 08. 2021, 8 pm)

Two Hungarian truck rescue companies joinded together and took out the lorry for free, 444.hu reported.

Featured image: illustration

Official highlights Budapest-Warsaw high-speed railway project

railway frankfurt high speed

Integrating Hungary in a European high-speed railway network will be “the grandest railway project of our life”, State Secretary László Mosoczi told an online conference on the Budapest-Warsaw railway development project aimed at connecting the Visegrad countries and Austria.

Once the new service is complete within the next 10 years, Vienna and Bratislava will be accessible from Budapest in less than 2 hours, Prague in 3.5 hours, and Warsaw in 5.5 hours, the state secretary said.

The project, he insisted, will guarantee a sustainable future for Hungarian railways.

Hungary has spent over 2,000 billion forints (EUR 5.6bn) on domestic railway developments in the past 15 years, while the government could spend “several times as much” in future to increase the competitiveness of the railway, Mosoczi said.

The state secretary noted the European Union’s directive of reducing greenhouse gas emissions by 90 percent before 2050, and said that

“the real solution” could be switching over from cars and aircraft to trains, which “could even ensure full emissions-free operations”.

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Read alsoEUR 12.5m allocated to connecting Budapest metro, suburban rail – VIDEO

Hungary builds new nuclear reactors but is committed to green transition, too

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Governors of the central banks of the Visegrád Group countries and the region’s leading financial experts on Thursday held a conference on green transition in the region, organised by the National Bank of Hungary (NBH). The Gradual Transition into a Greener Economy – Challenges and Opportunities conference was opened by NBH governor György Matolcsy, NBH said.

The alliance of the Czech Republic, Hungary, Poland and Slovakia is prevalent in several policy areas, including cooperation between the countries’ central banks, the statement said. NBH is committed to supporting regional cooperation and strengthening ties within the group, it said.

The coronavirus pandemic has thrown into relief the importance of the green transition,

a task seen as a priority by the region’s central banks, the statement said.

Matolcsy said in his address that gradual transition to a green economy was key to a successful Visegrád Group. While the pandemic has opened new opportunities to such a transition, the process is most effective in international cooperation, the panelists said.

Visegrád Group to set up a joint digital knowledge centre

Children’s programmes, folk dance, concerts, bike competition today in the Várkert Bazár, Budapest!

rsz_hungary_budapest_v4

Hungary’s presidency of the Visegrád Group will feature several cultural events, programmes and campaigns, the Hungarian Tourism Agency (MTÜ) said on Friday.

Hungary officially took over the V4 presidency for twelve months on July 1 with the formal opening event of the presidency taking place in Budapest’s Várkert Bazár on July 10.

The schedule on Saturday includes children’s programmes beginning at 10am to be followed by

folk dance performances, a BMX competition and meeting with the winner of 2020 Tour de Hongrie, and a pop concert,

MTÜ told MTI in a statement.

Hungary, holding the V4 rotating presidency for the sixth time, has set the goal to successfully relaunch Central Europe, and the whole of the EU, in the economic, social and diplomatic sectors. The presidency also aims to intensify cooperation and partnership among the four member states.

Wall painting marking 30th anniversary of Visegrád Group inaugurated in Budapest

V4 to speed up development plans, says foreign minister

visegrád four meeting

The Visegrád Group countries plan to further and speed up their development plans, Foreign Minister Péter Szijjártó said in Ljubljana on Friday, after a meeting of the heads of government of the Czech Republic, Hungary, Poland, Slovakia and Slovenia.

One key development is a high-speed railway between the Visegrád countries, he said, adding that such railways are scarce commodities in central Europe.

The new railway line is planned to link Warsaw and Budapest via the Czech Republic and Bratislava, Szijjártó said.

The feasibility study for the Hungarian section has already been completed, and the V4 working group for transport issues is convening in September, he added.

The 170-kilometre section will mostly follow a new route, south of the Vertes Hills, to keep environmental stress the lowest possible, and will have a direct link to the western European high-speed railway network near the triple boundary of Hungary, Austria and Slovakia, Szijjártó said.

The track will be suitable for maximum speeds ranging from 230 to 320km/h pending the terrain, he said, adding that travel time from Budapest to Bratislava will be reduced by an hour and a half, to Prague by three and a half hours and to Warsaw by five and a half hours.

Once completed, the high-speed railway will have a capacity to carry 20 million passengers a year, Szijjártó said. Further, it may help reduce annual carbon emission by 400,000 tonnes in central Europe, he said.

visegrád four
Read alsoWall painting marking 30th anniversary of Visegrad Group inaugurated in Budapest

Polish activist put an LGBT-free zone sign on the Hungarian Parliament

Hungary Poland LGBTQ

Police officers tried to fine Polish activist Bart Staszewski after he hung a sign on the gate of the main entrance of the Parliament on Saturday. As there was no basis for police intervention, authorities let him go after an hour.

The sign captioned “LGBT-free zone” and was a form of protest against the recent politics of the Hungarian government deemed by some as homophobic and transphobic. You can read more about this topic HERE. The activist wrote the text on the board in four languages: Hungarian, English, French, and Russian, writes Index. Also on Saturday, the former bishop of Vác, Miklós Beer, talked about the current situation to hvg.hu.

“We need to acknowledge the condition of those who are struggling with sexual identity problems and the fact that they are not the cause of this situation. We have to accept them and help them find their place, but it bothers us when we come across the propaganda of LGBTQ mindset as if it was the ideal situation of human life,” the former bishop said.

Ha added that homosexuals were severely judged in the Old Testament; however, in the past years, there has been a change of perspective, and the church community became more accepting. However, he said that the church cannot accept to look at homosexual couples as married or accept the fact that they adopt children. He referred to heterosexual relationships as having marriage and starting a family as their goal. He also mentioned that homosexuals are welcomed with love at church.

Beer said that it is not a lucky situation when politicians make decisions with reference to the Christian faith. Christianity continuously has to reflect on the changing world and reconsider if its practices are in accordance with Christian doctrine.

Fidesz to create a new European political power centre with Polish PiS?

Hungary Poland European Union

Hungary’s ruling Fidesz party has signed a declaration on the future of Europe drawn up by Poland’s Law and Justice (PiS) party chief Jaroslaw Kaczynski, Prime Minister Viktor Orbán, Fidesz’s leader, said on Friday.

In a video posted on Fidesz’s Facebook page, Orbán said Kaczynski had called on parties with similar positions to PiS to sign the declaration issued after months of planning as a contribution to the ongoing debate on the future of the European Union.

The declaration concerns the protection of nations, families and traditional Christian values,

Orbán said.

“Fidesz answered the call, because as the declaration states, we want this joint document to form the basis of our cultural and political work,” the prime minister said. “This is how we wish to take part in the debate on the future of the European Union.”

PM Orbán: imperialists always exploited the Czech Republic, Hungary, Poland and Slovakia

visegrád four

It is important that the Visegrád Group (V4) countries get to know each other’s culture as much as possible, Bence Rétvári, parliamentary state secretary of the Ministry of Human Resources, said in Nagymaros on Thursday.

Rétvári addressed a cultural event celebrating Hungary’s taking over the presidency of the Visegrad Group from Poland for the next year. Rétvári told journalists that besides political and economic cooperation, cultural ties were also important.

He said that historically imperialists entering the region, whether from the west, east or south, had

exploited the culture of all four Visegrád countries

— Czech Republic, Hungary, Poland and Slovakia — for their own purposes while attempting to impose their own cultures.

V4 cultural cooperation, however, was all about mutual respect and striving to become deeply familiar with each other’s culture.

PM Orbán: V4 countries should become winners of global economic transformation

visegrád four

The Hungarian presidency of the Visegrád Group will promote the member countries’ efforts to become winners of global economic changes, Prime Minister Viktor Orbán said in Katowice on Wednesday.

Orbán told a press conference marking the end of the Polish presidency of the V4 that the Hungarian presidency, to start on July 1, will help the Visegrád Group members (Czech Republic, Hungary, Poland, Slovakia) restart their economies through boosting investments.

As taxes need to be kept low to attract investments, Hungary does not support international initiatives for tax hikes, he added.

Orbán named security as another important aim, adding that this was tightly connected to migration. Hungary does not support the mandatory distribution of migrants, he said, adding that migration posed an especially great risk in the current health situation.

Further, Hungary advocates the soonest possible European integration of Western Balkans countries, the prime minister said.

Orbán stressed the need of a restart in intellectual terms as well. He said the Visegrád Group countries, both individually and as a group, will participate in the debates about the EU’s future.

Orbán congratulated Poland on its performance as V4 president in what he called the most difficult year of recent decades. Nevertheless, cooperation continued among the four members and none of them were left alone in trouble, he added. The Visegrád Group members cooperated in transporting citizens home when Covid restrictions made travel difficult, distributing equipment, sending doctors to each other and also in access to vaccines, he said.

Orbán said that after the coronavirus pandemic, the global economic and world politics status quo has changed.

The world’s largest free trade area has been established in Asia and the United Kingdom quitted the European Union, he said. The prime minister said that good relations with Britain should be maintained even after Brexit.

Orbán said that if the V4 countries were considered a single entity today, they would represent the world’s 17th largest economy, with economic growth twice as fast as the EU’s and public debt representing only 4 percent of that in the EU. After Germany, the V4 countries include the highest number of workers in the EU, he said.

In response to a question, Orbán said that overcoming the area’s lag in infrastructure development was a priority. During the Cold War, connections were established in east-west direction and the situation has not changed since, he said. However, building north-south links have now become vitally important for the V4 countries. It remains to be seen, however, how much EU funding can be involved in this programme, he said.

Orbán said central Europe represented considerable economic weight in the EU economy. The central European nations are full members of the European Union with major contributions to its overall performance that help the bloc keep pace with other regions. Accordingly, they demand due respect, he said.

The prime minister said Hungarians will never accept other EU members telling them how to raise their children. Nor will they accept anyone saying that a central European nation should be brought to its knees, he said.

visegrád four
Read alsoWall painting marking 30th anniversary of Visegrad Group inaugurated in Budapest

Wall painting marking 30th anniversary of Visegrad Group inaugurated in Budapest

visegrád four

A government official on Wednesday inaugurated a wall painting in downtown Budapest, marking the 30th anniversary of the Visegrád Group, and praised the group as Europe’s strongest political alliance, which is gaining economic weight, too.

The alliance comprising the Czech Republic, Hungary, Poland and Slovakia is “synonymous with common sense, cooperation and strength, and the restart after the pandemic” in Europe, Tamás Menczer, a state secretary of the foreign ministry, said.

“We want a Europe in which cooperation is based on mutual respect and strong nation states,” he said.

Jerzy Snopek, Poland’s Ambassador to Hungary, noted that the painting was being inaugurated on the last day of Poland holding the group’s rotating presidency. He said that Hungary, which will start its one-year presidency tomorrow, will hopefully be able to lead the V4 in a “better epidemiological situation”.

Péter Fekete, the state secretary in charge of culture, said the V4 will organise a joint conference on cultural innovations borne out of the pandemic during the Hungarian presidency, which will be followed by an exhibition in Strasbourg.

Joanna Urbanska, the director of the Polish Institute in Budapest, said the wall painting designed by Magda Miszczak is also being inaugurated in Bratislava, Prague and Warsaw.

The painting adorns a wall of 32 Klauzal Street, in the 7th district of Budapest.

visegrad group prime minister
Read alsoVisegrád Group to set up a joint digital knowledge centre

National defence interests ‘priority’, says Hungarian minister

BENKÕ Tibor defence minister

National interests should be given priority and coordinated with the interests of NATO, Defence Minister Tibor Benkő told an annual meeting of defence, military and air attaches on Tuesday.

The minister noted that NATO has identified two directions from which major threats have emerged in Europe: from the East comes a possible Russian attack on Hungary’s allies such as Poland and the Baltic states, while the threat from the South comes in the form of a mass of illegal migrants leaving their unstable homelands and approaching the European Union along the Balkan route, he said.

Hungary is developing its armed forces in light of its geographical location at the intersection of these threats, Benkő said.

The minister said Hungary’s armed forces had made great progress in implementing its defence and arms development programmes.

Benkő emphasised that defence diplomacy should be dominated by defence and security interests rather than political ones, citing the example of Hungary’s military relations with Ukraine and the United States, which had improved even at a time when its relations with those countries’ respective governments deteriorated.

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Read alsoShocking new information about the Hungarian Armed Forces

Hungary, Poland attacked for going against intl liberal mainstream, says minister

szijjártó

Hungary and Poland are being “attacked” because their governments are going against the international liberal mainstream, Foreign Minister Péter Szijjártó said in an interview with Polish public television TVP Info on Monday.

Commenting on Dutch Prime Minister Mark Rutte’s criticism of Hungary’s new child protection law, Szijjártó said Hungary was “used to this kind of verbal aggression from the liberal mainstream”. Szijjártó stressed that the law served to protect children and their parents.

The attacks on Hungary and Poland will continue as long as they promote national interests and implement policies based on Christian values, and as long as the traditional family model remains a key element of their governments’ policies, Szijjártó said.

“These kind of attacks aren’t based on any rational arguments,” the minister said. “But the explanation behind them is that someone wants to disempower the last governments that go against the international liberal mainstream.”

The Polish and Hungarian governments are among the few in the European Union that still understand conservative values and national interests and apply a traditional approach to the concept of the family, Szijjártó said. The mainstream refuses to accept this, “the same way they refuse to accept that these two governments were right to reject migrant redistribution quotas”, he added.

As regards migration, Szijjártó warned that NATO’s withdrawal from Afghanistan would again increase migration pressure on Europe.

Read also: 

Hungary plane Belarus
Read alsoEU’s flight ban breached? A small armed Hungarian plane flew to Minsk

Hungarian, Swiss finance ministers concerned by min corp tax rate within EU

Mihály Varga Fidesz

Finance Minister Mihály Varga met his Swiss counterpart Ueli Maurer, the Finance Ministry has said.

Hungary and Switzerland are in agreement that the introduction of a global minimum corporate tax rate would hold back innovation and economic growth, that the planned minimum rate of 15 percent is too high, and that real economic activities should not be burdened, Varga said after the meeting held on Friday.

Hungary and Switzerland are both committed to tax sovereignty and fair tax competition and share views on a number of points concerning the OECD’s proposed minimum corporate tax rate, he added.

Hungary is prepared to participate in international negotiations on the global minimum corporate tax rate, with the aim of getting as many member states to support the preservation of tax competition, he said.

Now not the time for budget cuts, says Hungarian finance minister

Central bank, govt advance in strategic alliance, in spite of differences

Varga noted that the finance ministers of the Visegrád Group – Hungary, the Czech Republic, Poland and Slovakia – had coordinated their stands on the matter at talks on Tuesday and would voice it at OECD and European Union forums.

Removing taxation from the competition among national economies “is a mistake”, he said, adding that Hungary’s 9 percent corporate tax rate supports real, productive investments. Increasing that rate would negatively impact “several thousand” Hungarian companies and cause the loss of jobs, he added.

“The Hungarian government’s crisis management measures are founded on preserving workplaces, incentivising investments and reducing taxes; we do not support tax increases in any forum,” Varga said.

Read alsoSurvey reveals that Hungarian standard of living is at the bottom of the EU

Now not the time for budget cuts, says Hungarian finance minister

varga minister Hungarian finance minister

Economic policy should be focused on supporting investments, creating jobs and recovering capacities lost to the crisis caused by the coronavirus pandemic, Hungary’s finance minister said after a meeting with his Visegrad Group counterparts in Warsaw on Tuesday.

Now is not the time for contractionary measures, but for rebooting the economy, Mihály Varga told an online press conference. Cutting support to economic players too soon would slow the pace of recovery, posing a risk to families, businesses and the economy as a whole, he added.

Even with economy protection measures accounting for almost 30 percent of GDP, Hungary’s budget deficit was around the European Union average, while the public debt level was significantly lower, Varga said.

The minister expressed concern over international proposals for the introduction of a global minimum tax, saying it posed a risk of global tax increases, while the original plan to tax tech giants could fall by the wayside.

Hungary’s stance on the proposal is clear, Varga said, noting that the country rejects any plan that would force it to raise taxes and hurt its competitiveness. Hungary’s 9 percent corporate tax rate brings in investments, he said, adding that a tax increase would hurt thousands of businesses and put jobs at risk.

In response to a question, Varga said Hungary was prepared to take part in the talks on the global minimum tax plan and believed that its partners could be persuaded not to eliminate tax competition.

Hungary will make its position known at OECD and EU forums, Varga said, adding that he had also discussed the proposal with his V4 counterparts on Tuesday as well as with the representative of Italy, which holds the presidency of the G20, at last week’s Ecofin meeting in Luxembourg.

As the incoming president of the Visegrad Group, Hungary is committed to continuing the work started by Poland and to strengthening the alliance, Varga said.

The minister said the Czech, Hungarian, Polish and Slovak economies had all contracted at a lower rate than the European Union average in 2020, adding that their output would be back at pre-pandemic levels this year.

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Read alsoHungarian central bank raises base rate 30 bp to 0.90 pc

V4, French economy ministers discuss pandemic, strengthening Europe’s economy in Krakow

visegrad group four v4

The economy ministers of the four Visegrad Group countries and France discussed the experiences of the coronavirus pandemic and ways of strengthening Europe’s economy in the post-pandemic period in Krakow on Monday, Hungary’s innovation and technology minister told MTI by phone.

The ministers discussed in detail the economic, health care and social impact of the pandemic, László Palkovics said.

They established that Europe had faced a shortage of essential medical supplies and production capacities it would have needed to tackle the pandemic, Palkovics said, noting that Hungary had responded to the challenge by enhancing its domestic production capacities in ventilators, face masks and other medical supplies.

Discussing the economic aspect and the restarting of Europe’s economy, Palkovics said that global supply chains had posed a challenge but the industrial sector had recovered in a relatively short period of time.

“There is, however, still a shortage of some raw materials which must be tackled,” he said.

The five ministers also touched upon the issue of energy independence and agreed that the option of using nuclear energy and natural gas must be maintained.

The ministers signed a declaration on future cooperation in adjusting supply chains, ensuring financial schemes to European producers, developing the health-care sector and enhancing energy independency.

visegrad group prime minister
Read alsoVisegrád Group to set up a joint digital knowledge centre