Hungarian Conservative

Additional previously frozen EU funding is set to reach Hungary, this time totalling more than €70 million. However, more than €20 billion funds are still withheld by Brussels.

‘Through the Kun and Jász peoples, this city still represents the Central Asian roots of the Hungarians today,’ Finance Minister Mihály Varga said at the inauguration, adding that herefore, the symbolic building of the Treasure of Karcag Art and Conference Centre, known as the Shaman Drum, has been placed in probably the best location in the country.

According to recently released data, the Hungarian economy has surpassed the EU average in 2023, and is poised to be among the leading countries in 2024 as well.

The minister stressed the importance of maintaining disciplined fiscal policies this year, aiming for an annual average inflation rate of around 5 per cent. He firmly asserted that until the inflation rate returns to a more moderate range, fiscal spending should be limited.

The minister noted a ruling by Hungary’s Supreme Court, declaring that Budapest could not be even partially exempt from its obligation to pay its taxes. Varga said if the Budapest city council failed to meet its obligations, the government ‘will follow the given legal provisions along the clear decisions taken by the judiciary’.

According to the minister’s briefing, this brings the total amount of EU funds allocated to Hungary in the past days to a substantial 470 billion forints. Last Thursday witnessed a transfer of €779.5 million (equivalent to 300 billion forints) from the recovery funds.

Under the scope of the Union’s REPowerEU programme, €779.5 billion have been transferred to Budapest and the amount is now included in the government budget, Finance Minister Mihály Varga announced today. According to Minister for Regional Development Tibor Navracsics, an additional €445 million will also arrive from Brussels soon.

In a missive addressed to European Commissioner for Budget and Administration on Thursday, the Hungarian Minister of Finance recalled that there is a long-standing consensus that the defence of the European Union’s borders is a collective responsibility of the member states, and yet, Hungary bears almost exclusively the financial burden of the protection of its southern, Schengen border.

Speaking at the National Tax Consultation event organized by the National Tax and Customs Administration (NAV), Finance Minister Mihály Varga stated that with the change in the tax authority’s mindset, NAV has succeeded in becoming a customer-friendly office. He highlighted that NAV has fulfilled the task of renewal, evident in the significant improvement in its public perception since 2010.

At the launch event, Finance Minister Mihály Varga highlighted that the combined market share of MBH and OTP, Hungary’s two largest banks, now far exceeds the share of foreign banks operating in the country.

Mihály Varga pointed out during the introductory economic policy roundtable discussion that the government has taken measures to reduce inflation risks, which have yielded results. This is confirmed by the analyses of major credit rating agencies, which are ‘filled with positive findings,’ he said.

Mihály Varga recalled that during the pandemic, it became evident that Hungary needed to increase its self-sufficiency in the health industry. Therefore, in 2020, the government launched the Healthcare Industry Support Programme, which, among others, has now facilitated Medicor’s investment.

Enumerating the factors strengthening the positive outlook for the economy, the Hungarian finance minister stated that the country’s export performance is very good, and in terms of population, Hungary ranks 94th among the countries of the world, while it stands at 34th place in terms of export indicators.

The minister reminded all that the independent Hungarian Ministry of Finance was the first lasting success of the revolution. In April 1848, Lajos Kossuth began working on the establishment of the ministry, and it started its operations in May of that year.

The new Task Force set up by the Finance Ministry has been portrayed as a sign of austerity measures to come by the opposition media, however, the Ministry has debunked these speculations in a press release. In their statement, the Ministry assures the people of Hungary that family support schemes and the utility price cap will remain in place.

The 2024 budget is a defence budget because during times of war, Hungary needs a budget that guarantees its security, protects families, pensions, jobs, and reduces utility costs, the Hungarian finance minister stated in parliament on Tuesday.

Regarding healthcare salary increases, the minister said the government will continue its two-stage wage hike programme. In addition to the 18 per cent raise in July this year, 200 billion forints have been allocated for this purpose in the draft budget for next year. The funds for pharmaceutical subsidies, cash benefits in health insurance, and the procurement of ambulances will also be expanded.

Speaking at the EU-PED Day of the university, on which all educators working in Hungarian-language tertiary education are celebrated, Mihály Varga reminded that the goal of the government with the transformation of higher education and the introduction of dual education was for universities to become ‘intellectual centres that define and broaden the country’s development opportunities.’

Viktor Orbán explained why his politics will eventually be proven right: ‘We were the only ones who said that borders must be protected during the migration crisis. Later, more and more EU member states realised that we were right. The same will happen regarding the war’, he underlined.

According to the National Bank of Hungary, the ratio of gross government debt to GDP improved significantly last year.

The Hungarian economy performed exceptionally well in 2022, despite the economic crisis caused by the war and the harmful sanctions imposed by Brussels.

While in 2010 only three percent of the national debt could be covered by government securities, today this rate stands at around 25%.