One of Peter Magyar’s most loyal supporters and agricultural economist gave an interview to RTL the day after the election. The so-called “green baron,” who previously advocated for the introduction of a multi-tier tax system, repeated familiar talking points: “The Hungarian economy is in a catastrophic condition,” he said, before outlining why he believes the Tisza Party should take over governance as soon as possible and what urgent measures, in his view, would be necessary.
Rasko also made it clear that the new cabinet’s first measures would not only target the domestic economy, but would also send a clear message to investors, markets, and Brussels.
The new government of Hungary is serious about intending to accelerate the fulfillment of the expectations needed for EU funding to arrive in abundance in the coming months,
– he said.
His remarks effectively echoed reports cited in diplomatic sources to the Financial Times, according to which the European Commission has already presented a 27-point list of conditions to the Tisza Party, tied to Hungary’s access to EU funds and linked to Peter Magyar’s campaign promise of bringing those resources home.
However, the direction outlined by Rasko would also involve rolling back several current measures designed to support Hungarian families.
“There are tasks in the sense that the Orbán government introduced certain public welfare measures that are not sustainable in the long term, such as the retail margin cap and the so-called protected fuel price. These should be phased out gradually and smoothly. For example, in the case of food products, value-added tax (VAT) on fruits and vegetables should immediately be reduced to five percent, while the retail margin cap should be gradually abolished,”
– the Tisza-affiliated expert said, adding that these measures would likely have inflationary effects.
“There is no significant inflationary pressure in food prices… but inflation could accelerate by a few percentage points in these areas,” Rasko said, adding that
the sooner the preparation for this starts, the better.”
The remarks by Peter Magyar’s trusted advisor, who already pre-emptively explained expected economic steps, align with comments made by former central bank deputy governor Julia Kiraly, who also referred to an “empty state treasury” and argued that a future Tisza government, in order to meet Brussels’ expectations, would burden Hungarian households through tax increases and a shift away from cheap Russian gas.
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