PM Orban: Economic situation would soon change if the war ended

Hungary's prime minister presented the government's new decisions in his regular Friday morning interview on public radio.

"In a situation in which the European economy and we, Hungarians, find ourselves, we must take steps that build on each other in order to bring down inflation," Prime Minister Viktor Orban said on Kossuth Radio's Friday morning program. War is the root of the problem, the Hungarian premier said, pointing out that as long as there is no peace, war economy will stay, and the consequences of war will persist. The sanctions will remain in place because Brussels refuses to lift them.

PM Orban stressed

if the war ended, the environment for Europe's economy would change in an instant.

"An immediate peace would also be good for the warring parties, because hundreds and thousands of lives would be saved, he added. The correct political and moral position is that peace is needed," he said, noting, however, that apart from Hungary, only the Vatican has taken this stance. Europe's economy would soon change if the United States and the European Union behaved differently, Hungary’s prime minister pointed out.
 

Single-digit inflation is aimed for

There are three things to do, Hungary's premier said: we have to protect jobs, and we are doing well in this respect. "The second task is to bring down inflation, but this is a harder nut to crack," PM Orban underlined.

He recalled that the policy that price speculator multinationals should stop raising prices unjustifiably had to be clearly announced. "We had to show strength that this could not continue. Enough is enough," he said. He stressed that this policy will lead to single-digit inflation by the end of the year. He expects the results of the measures to be reflected in inflation figures as early as August.

Hungary's economy has fared well, PM Orban said, adding, however, that going on holiday  "cannot be allowed" for relevant ministers.

He highlighted that economic actors have not closed jobs, but are preparing for the future, even if the situation is difficult.

Price hikes were so brutal that wages could not keep pace with them, so wage increases must be targeted,

said Viktor Orban, adding that the 2024 budget assumes an inflation rate of 6 per cent, which is high, but it is the minimum we need to reach.

If we can keep up the work, we could achieve 5 per cent, PM Orban said.

There is more to the World Athletics Championships

There is an economic link between the World Athletics Championships held in Budapest and economic growth, Mr Orban pointed out, adding that he believes that there is a bigger issue at stake.

"We have set ourselves the goal of making our capital the host city for world events," Viktor Orban said. He recalled that it all started with the renovation of the Hungexpo exhibition and convention center, the largest in Hungary, followed by cultural facilities, and the third big step was taken towards the world of sporting events.  "All these will bring the world to Budapest. The World Athletics Championships fit into this series," he said and thanked the organizers of the event.

Today, Budapest is a national capital that one must visit. People rightly feel that if they don't come here, they are missing out.

PM Orban pointed out, adding:

Budapest belongs to everyone!

The premier also stressed the diplomatic importance of the World Athletics Championships, mentioning that the Turkish President, the Emir of Qatar and the President of Serbia will also visit Hungary.

He added that Hungary will also have "political friends" from the Central Asian region, including Azerbaijan, Uzbekistan, Kyrgyzstan and Turkmenistan, as well as many businessmen from all over the world, especially from Western Europe and China.

He noted that political and business talks will also be held and that as prime minister, he will have more than a dozen official bilateral meetings during the 20 August celebrations and the world championship.

 

Survival of the nation requires strength

PM Orban also spoke about the 20 August celebrations of the foundation of the Hungarian state. Hungary's history is winding and stormy, he said. "We came from far away 1100 years ago, since then we have lived here as an island, but what we hold on to what we have conquered," he emphasized.

"St Stephen has played a key role in ensuring that we have the ability to do this, that we have a tradition and culture that helps us to survive," the premier said.

On Friday morning, the premier is to attend the inauguration of the Rheinmetall plant in Zalaegerszeg. He praised the project and recalled:

Hungary's defense industry has been in decline for the past twenty years, so now we need to talk about how to rebuild it.

“We cannot survive without strength. To survive, we need spiritual strength, but we also need military strength. We should have warriors, not employees in uniform! The most important factor is the soldier. The emphasis is on their training and pay. But we also need a military industry. We cannot create a functioning army without our own production capacity," the prime minister said, adding that the lesson of the Russian-Ukrainian war is that it is not only important how many weapons you have, but also how many you can produce.

Magyar Nemzet will report live from the handover ceremony in Zalaegerszeg and Prime Minister Viktor Orban's speech.

Prime Minister Viktor Orban in the studio of the Kossuth Radio (Photo: MTI/ Prime Minister’s Press Office/Zoltan Fisher.)