"When it comes to wages, the chanting of hardcore football fans applies: more, more, more, that's not enough," said Viktor Orban on Kossuth Radio's program Good morning Hungary. At the time of the regime change, we switched to a private economic system, and wages started from a very low level then, Hungary's prime minister recalled.
"The rate of wage increases can never be enough," he added. He said the government helps employers and workers negotiate, but only intervenes as a last resort.
"We are working to ensure that wages catch up with the rate of price increase after August,"
Viktor Orban pointed out.
August could be the month to bring a change, with wage growth outpacing inflation, he said adding that we are ahead of a difficult autumn, with the goal of wage growth outstripping inflation. The Hungarian premier is confident that by the end of the the year, price increases and wage growth will be close to the same level.
It is important that the second half-year corrects a difficult first half
The economy has been stable since 2012, PM Orban pointed out. "Since then, there has not been a year, or even a quarter of a year, when prices have risen faster than wages. Of course, people may have felt the opposite, but it is a fact that there has been no drop in real wages for 11 years. By contrast, the first half of this year saw a drop. The first half of the year was therefore a very difficult period, which is why it is important that the second half of the year should correct the first half ," he underlined.
One part of the price increases could be explained, Viktor Orban said.
The war led to supply disruptions, and then came the sanctions from Brussels, which sent energy prices skyrocketing. However, price increases also had a part that was seen unjustifiable. This was the case with large multinationals, which maintained a price level that was much higher than what would have been justified by fair profit making. It was therefore necessary to take action against this. Since dissuading multis is difficult, the government had to show teeth, claws and strength. And the rules paid off,
PM Orban explained.