PM Orban: EU's Latest Decision Tantamount to Economic Cold War

The decision will primarily affect Hungary’s export-oriented economy.

Prime Minister Viktor Orban in Kossuth Radio's studio (Photo: MTI/Prime Minister's Press Office/Zoltan Fischer) Fotó: Miniszterelnöki Sajtóiroda/Fischer Zoltán

– "We held a cabinet meeting to kick off the fall season in Geszt (a village in south-east Hungary -ed). The key focus was to set the right balance for the government's operations," PM Viktor Orban told public Kossuth Radio's Good Morning, Hungary! program in his Friday morning interview. He explained that while there is a huge temptation for Hungary to focus on foreign policy, the government must primarily concentrate on the economy. "We are reviewing the next six months with each ministry," he added, regarding the cabinet session.

Discussing the current economic situation, Mr. Orban pointed out that the EU is waging an economic cold war. This, he said, was the worst that could happen to Europe, including Hungary.

If global trade is paralyzed, selling products will become more difficult, and this is directly linked to the daily living standards of families. That’s why we are building economic neutrality,

– he added.

 

Economic neutrality

PM Orban emphasized that the strategy of economic neutrality is sparking significant debates, but if we read between the lines, it’s about attempts to derail Hungary from its path of economic neutrality.

If we do this well, we can increase our economic performance to between 3% and 6%, which means wage hikes. Economic neutrality brings growth and higher living standards. We must stand our ground, defend this position, and be successful. If we achieve 4 percent growth next year, while Western countries stay around zero, one or two percent, it will be difficult to bring us back into the fold. We need success,

 – the prime minister emphasized.

He underlined that tourism has had a record year and the food industry is in good shape, but the automotive industry is "coughing," although that will change. When they took over the government in 2010, unemployment was high, but today, everyone has a job, and there are more positions than there are people willing and able to work, Mr. Orban said.

We have high-quality, skilled and disciplined workers, which is closely tied to the fact that Hungary is experiencing growth,

– he explained. 

PM Orban contended that the biggest blow in recent years has been high inflation, but they’ve managed to bring it down to below 10 percent. 

We were able to protect people from rapid price increases,

– he added. He signaled that the biggest help for people is maintaining the pace of wage growth, which requires reaching agreements with employers and employees. He stressed that they aim to raise the average wage to one million forints within two or three years. He also mentioned that Hungary's aconomy minister has been tasked with ensuring that an agreement on this is reached by year's end.

He also emphasized the importance of striking a delicate balance, ensuring that wage increases extend beyond the private sector and are reflected in the salaries of the state-run public sector as well. He pointed out that significant wage increases have been achieved for teachers, doctors, and nurses, adding that the next focus will be a wage program for water management workers.

 

Families

PM Orban underlined that 

"If there are children, there is a future, so parents must be treated fairly. Thus, we must double the current tax allowance for children next year,

he said, adding that the situation of families raising children will improve in 2025 and 2026, regardless of the parents' profession.

 

Migration 

Touching on the current migration debates, PM Orban underlined that in Brussels, it’s unusual to say what you think and then actually do it. – "The mayor of Brussels should brace himself, because we will transport the migrants to the main square by bus, legally," he warned.

He said he does not believe that French President Macron’s claim about the EU falling apart is an exaggeration, because the European economy will collapse, but it will be torn apart by migration, even before that. European citizens will not tolerate losing their feeling of being at home. This is why Babis won in the Czech Republic, why the Freedom Party succeeded in Austria, and why Germany’s AfD performed so well.

If Brussels doesn’t come to its senses and adopt a border-protection policy, migration-related conflicts will tear the European Union apart even before the economy collapses,

– Mr. Orban said.

 

Security 

Everyone will feel the effects of the war in the Middle East, which is making the global economy cautious and causing the Hungarian currency to weaken, he added. What happens there could also have security implications for us. Additionally, a large number of Jewish citizens live in Hungary and, as they are personally affected, they question whether they are safe in the West. – "We must do everything to protect them. We have security responsibilities, which is why the national security cabinet had to be convened," PM Orban explained.

Magyar Nemzet provided live text coverage of the Prime Minister Orban's radio interview.

Cover Photo: Prime Minister Viktor Orban in Kossuth Radio's studio (Photo: MTI/Prime Minister's Press Office/Zoltan Fischer)