If the opposition wins, Hungary will have euro by 2027 – UPDATED

Parties of the united opposition presented their ideas concerning a possible introduction of the euro, taxes, inflation, job creation and budget management at a roundtable organised by the Civitas Institute on Thursday.

Párbeszéd MP Tamás Mellár said the opposition’s plans to introduce the European common currency were “very good”, but added that the programme would take at least five years to complete. Hungary could not at present meet the Maastricht criteria for the introduction of the euro, but aspirants are expected to present a “credible programme” outlining a schedule, he said. Mellar insisted that the current policy of currency devaluation could not be maintained and suggested that the exchange rate of the forint should be kept within “a very narrow” band.

Democratic Coalition MP László Varjú added that “there has been no political will” to join the euro zone in the past ten years despite “there being opportunities”.

LMP’s Antal Csárdi called for a graded personal income tax to replace the single bracket system, adding that minimum wages should be exempt from tax.

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Participants in the roundtable also agreed that the VAT system should be changed, and said it was “not without precedent” in Europe to have multiple VAT brackets. Dániel Z. Kárpát of Jobbik said Hungary had the highest VAT rate in Europe on products for children.

Zoltán Vajda, representing the Socialist Party and the Everybody’s Hungary Movement, said the central bank’s policies were “irresponsible”, and criticised the bank’s purchases of government securities and its foundations. He insisted that the central bank’s continual base rate hikes were ineffective and failed to strengthen the national currency.

Márton Ilyés of the Momentum party said that a labour shortage in the country was the result of increasing emigration, with special regard to the health, construction, and farming sectors. He criticised the government for “wasting exorbitant funds” on “attracting companies to Hungary offering similar types of jobs” rather than making efforts to create increasingly higher quality jobs.

In another development Varjú called the 2022 budget “impracticable” and called for a new one. He insisted that transparency of the budget was a pillar of the rule of law. He also called for health services to be made free of charge.

UPDATE – Fidesz’s reaction

Ruling Fidesz said in response that former prime ministers Ferenc Gyurcsány and Gordon Bajnai,

“the same people who already destroyed the country once and ran it according to the financial interests of foreign speculators”,

were still in charge of Hungarian left-wing economic policy.

“Under successive left-wing governments, Hungary gave up its economic and financial sovereignty, allowed multinationals and speculators to make out-sized profits at the expense of the Hungarian people and Hungarian businesses, created mass unemployment, and heavily taxed the economy and wages.”

Fidesz added the left wing and its prime ministerial candidate were planning to impose on Hungary the same ill-fated economic policy it had already pursued while winding up the current tax regime “which ensures Hungarian businesses the lowest tax in Europe and Hungarian workers the third lowest”, it added.

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Source: MTI