A Successful Economy Needs Free Trade with West and East, Prime Minister Says

By: hungarytoday.hu

Oct 14 2024
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A Successful Economy Needs Fre

Economic policy and a new economic program were the focus of Viktor Orbán’s private speech at the Fidesz-KDNP’s closed-door parliamentary group meeting in Esztergom (northern Hungary) on Sunday. According to Magyar Nemzet, the Prime Minister announced an economic program, including affordable housing, a one-million-forint income, a workers’ loan, and capital grants for small Hungarian businesses.

According to the Prime Minister, economic neutrality will bring a turnaround from 2025, and the government’s goal is for Hungary to achieve economic growth above the European Union average, Magyar Nemzet reports. The Prime Minister said the world has changed radically since the outbreak of the pandemic and the Ukraine war.

In his opinion, in ten years at most, the East will be at the top of the list in the world economy.

Mr. Orbán confirmed that Brussels and the Western world have responded to this situation by declaring an economic cold war. However, this economic cold war is not good for Hungary and the government would like to stay out of it, Magyar Nemzet writes, citing the politician. He stressed that if Hungary wants to be successful, it must be economically neutral.

Reportedly, the Prime Minister also set a specific target: “Hungary needs a level of growth above the European Union average!”

In his opinion, only by pursuing a policy of economic neutrality can the Hungarian economy achieve economic growth above the EU average. In order to achieve high economic growth, Mr. Orbán said, the economy needs free trade with both the West and the East. With the policy of economic neutrality, the Hungarian economy is expected to grow at a rate of between three and six percent, and this new policy could put the Hungarian economy on a stronger growth path from 2025.

Next to Viktor Orbán (R3), István Simicskó, leader of KDNP (R2), Gábor Kubatov, Fidesz’s party director (R), Gergely Gulyás, Minister responsible for the Prime Minister’s Office (L2) and Antal Rogán, Minister responsible for the Prime Minister’s Cabinet (L). Photo: MTI/Miniszterelnöki Sajtóiroda/Benko Vivien Cher

He said that this new type of economic policy also requires new instruments: it needs the agreement of economic players, the chambers of commerce, interest groups, and workers’ organizations, as the government does not want to decide on them above their heads. He also noted that the government aims to reach a new agreement with employers and workers on a multi-annual wage increase program based on economic growth, writes the portal.

With this agreement, the minimum wage of EUR 1,000 and the average wage of HUF 1 million (EUR 2,500) will be reached in the near future in a predictable way,

he highlighted.

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Mr. Orbán also spoke about the previously announced new type of credit for workers, pointing out that skilled labor is very important alongside graduates. This is why the government wants to introduce it in 2025: like in the case of the the student credit, young people who work will also be given a zero-interest loan.

The head of government noted that war inflation and the energy crisis had pushed up property prices in Hungary and Europe.

In order to ensure affordable housing in Hungary, the number of housing projects should be doubled, and banks should reduce interest rates on housing loans to below five percent,

he stressed.

He concluded that there were three points of intervention in the Hungarian economy: affordable housing, HUF 1 million income, and a workers’ loan, along with the program helping Hungarian small businesses.

The "Heart and Soul" of Our Economic Policy is Neutrality