PM Orban: We Have Never Been Closer to Peace, Yet the War Situation Has Never Been So Dangerous

During his Friday morning interview, Prime Minister Viktor Orban announced that he is nominating Finance Minister Mihaly Varga to head the Hungarian National Bank. Speaking to Kossuth Radio, Mr. Orban also discussed the weekend's parliamentary elections in Romania and the potential impacts of the minimum wage hikes in Hungary. He emphasized that the proposed "peace budget" could facilitate a new economic policy, although he accused Brussels of working against his government in a bid to prevent the implementation of measures aimed at helping the Hungarian people.

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

Prime Minister Orban's interview began with a discussion of the Romanian parliamentary elections. He remarked that while Hungarians will vote this weekend, the elections are not in Hungary, but in Romania. According to Mr. Orban, the current situation in the neighboring country is both exciting and instructive. There’s a lot going on: a presidential race and a parliamentary election happening simultaneously, PM Orban underlined. 

He commended Hunor Kelemen, president of the Democratic Alliance of Hungarians in Romania (RMDSZ), for what he called a fantastic performance in the first round of the presidential election.

We can be proud of Mr. Kelemen, who successfully represents the Hungarian minority in Romania's Transylvania, even in Romanian-language debates, Mr. Orban said. "We can be proud of Hungarians living beyond the border. The question is whether they are proud of themselves," he said, urging strong turnout in support of RMDSZ during the December 1 parliamentary elections.

– If they take pride in themselves, they must ensure that the Hungarian community in Romania retains parliamentary representation during Sunday's general election, he added, encouraging everyone to participate. He indicated that the first round of Romania's presidential race still hasn't been closed, highlighting a broader issue that Hungary, too, could face in the future.

 

The government stands behind wage hikes 

Discussing the recent wage agreement, Mr. Orban described Hungary’s minimum wage system as unique in Europe, with two tiers: a general minimum wage and a guaranteed wage minimum often described as the minimum wage for skilled workers. The average of these two determines where the overall minimum wage level currently is in Hungary.

Reaching an agreement on wages is primarily between employers and employees, with the government acting as a mediator, according to Mr. Orban, adding that his government make no secret of its intentions and support for the wage hikes. 

He outlined the government’s long-term goal to reach an average wage of one million forints, and he argued that - with the current agreement - the government will be able to impact not just the minimum wage, but all salaries across the board.

The recently enacted 40% wage increase is historic in scale and has only occurred once before in Europe, Mr. Orban stated. While some are skeptical, he likened their disbelief to the initial reactions to his 2010 announcement, when he said the government will create one million new jobs. 

PM Orban acknowledged that without improvements in efficiency and productivity, businesses may struggle to sustain the wage hikes. He said the government can help by, for instance, accepting some Chamber of Commerce proposals on reducing companies' administrative burdens. 

– For economic growth, companies need to produce more and perform better. If corporate leadership quality does not improve, covering the wage increases will remain challenging, he noted, adding that the Chamber of Commerce will provide every assistance to businesses.

 

Matolcsy's mandate expires, Hungary's National Bank needs new governor 

Responding to a question on monetary policy, Mr. Orban confirmed that the term of Gyorgy Matolcsy, the current governor of the Hungarian National Bank, will expire in March.

Selecting the new governor of the Hungarian National Bank (MNB) requires thorough preparation, Mr. Orban said. He emphasized that Gyorgy Matolcsy has done excellent job, for which he is grateful. He described the central bank governor’s efforts to rescue those trapped by foreign currency loans as a heroic act. According to Mr. Orban, Hungary has plenty of capable economists, and the central bank plays a crucial role in the economy as a guarantor of stability.

– Among the many excellent economists, I sought someone capable of performing well under any circumstance. From the government and its periphery, two individuals stood out: the finance minister, and Hungary's economic development minister. I chose the calmest of the two, Finance Minister Mihaly Varga, who accepted the nomination – Mr. Orban declared. 

PM Orban is grateful as Mihaly Varga accepts nomination to lead Hungary’s National Bank

PM Orban mentioned that Energy Minister Csaba Lantos and Marton Nagy – the current national economy minister and former deputy governor of Hungary's National Bank – had also been considered for the role, but ultimately, predictability was the decisive factor, which led hik to select Finance Minister Mihaly Varga.

Mr. Orban his gratitude for the finance minister for accepting his nomination. He noted that Mihaly Varga has been an MP since 1990 and has climbed the ranks as an economist within both the National Assembly and the government, gaining extensive practical experience, which will be crucial for leading the central bank. As a result, the finance minister will leave the government and the bank, starting from January 1, will operate under a new economic governance structure, with further details to be announced later.

 

Close to peace, yet in a dangerous war situation

Regarding the ongoing Russia- Ukraie war, Mr. Orban described the situation as paradoxical: “We have never been closer to peace, yet the war situation has never been so dangerous," he said.

He highlighted the responsibility of European politicians for failing to recognize the severity of the conflict, citing Russia’s recent test of an intercontinental ballistic missile capable of carrying nuclear warheads.

Turns out the Russians ara capable of sending nuclear warheads, so this display of nuclear capability has given everyone pause,

– he remarked.

According to Russian news reports, even Western soldiers have already died in Ukraine. This indicates their presence on the battlefield, which Mr. Orban described as a highly dangerous development. He said the European Parliament wants to continue the war efforts and even adopted a resolution on increasing support for Ukraine. Fllowing its election defeat, the outgoing U.S. administration also made a similar choice, so Trump's recent election victory has yet to influence the conflict.

 

Peace budget to pave the way for new economic policy

Concerning the ongoing National Conmsultation on Hungary’s new economic policy, Mr. Orban noted that the country has endured some difficult years, adding that people are eager for relief. "We’ve done everything we could to bring this war to an end," he stated. 

He said the peace budget provides an opportunity for a new economic policy, which he hopes will be approved by parliament and widely communicated to the public.

He indicated that the EU is demanding measures from Hungary that would make these steps impossible.

– I want to protect Hungary from these decisions coming out of Brussels, and for that, we need strength – he added. He recalled that Hungary is in opposition to Brussels, adding that a pact forming a parliamentary majority was signed in the European Parliament, supported by the DK and the Tisza Party. He also pointed out that there are ongoing battles with Brussels over issues such as migration and child protection. “The purpose of the National Consultation is to strengthen Hungary’s position, because these battles not only need to be fought, but also won,” PM Orban stated at the end of the interview.

To watch the interview with Hungary's prime minister, click here: 

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