Government Briefing: Economy on the Verge of Expansion after Prolonged Stagnation

After the first cabinet meeting in the new year on Wednesday, an extraordinary government press briefing was called for Thursday. The main topic of yesterday’s cabinet meeting was the assessment of the current economic situation, which was presented in detail by Gergely Gulyás, the Minister heading the Prime Minister’s Office, and Eszter Vitályos, Government Spokesperson, at the press conference.

The minister began the briefing by informing the press about this morning’s bomb threats against schools in Hungary. He said that since dawn, when the first threatening e-mail was received, the government and the secret services have been in constant consultation. Based on information so far, it is believed that the threatening e-mails were sent from a single location by an unknown user to 30 educational institutions (ed.: 240 schools have been affected since), with the same text. “It is time to extend our blessed operations to the heart of Europe, a bastion of disbelief and hypocrisy. We have witnessed the continual wars of your governments against the Muslims, and it would be only fair that you should now experience the wrath of the oppressed. From now on, your safety is no longer guaranteed. Let your leaders and the people of Europe know that the lions of the caliphate are targeting your cities,” the politician quoted from the letter.

He informed the press that teaching had not been suspended in schools, but that it was up to school principals to decide.

He recalled that there was a similar threat in Slovakia last year and expressed optimism that no explosive devices were found in the institutions then.

Gergely Gulyás said that at Wednesday’s cabinet meeting, the minister of national economy gave a long analysis of the situation, “that gives a reason for optimism after the difficulties of the past years.” The minister said that the chances of ending the war in the foreseeable future are much greater now than ever before, but that there are tangible signs of a turnaround in the Hungarian economy regardless of the conflict in Ukraine.

The politician highlighted the record high employment rate of 4.7 million, rising real wages, the growth in consumption and retail sales last year, and the increase in household credit. He concluded that

the 21 points of the new economic policy action plan, the family support measures, and the economic growth that will start this year will strengthen these processes, and therefore the Hungarian economy is on the verge of a major expansion after a long period of time.

The minister also highlighted the inauguration of the new US President, Donald Trump, as a major event of the week. According to Gulyás, the steps taken by the new US administration and the president are in line with the Hungarian government’s goals, such as in migration and gender policy.

He believes that Hungarian-American relations will be better than they have been in the last four years. At the same time, he added that the new US administration will obviously put its own economic interests first. On this basis, the main “opponent” will be the trade deficit, which the new administration wants to change. The means to do this, he said, is either an agreement or a new tariff policy.

The Hungarian government would be happy with an agreement, but if this is not achieved, the Americans could impose tariffs that could have a negative impact on Hungary,”

he stressed.

Gulyás informed the press that at yesterday’s meeting, Prime Minister Viktor Orbán reported on his meeting with Slovak Prime Minister Robert Fico. The minister said that the two governments are the voice of reason in European politics and in European enlargement policy, and that Hungary is in solidarity with Slovakia.

Hungary and Slovakia are not just good neighbors, but are also on the same side on the most important issues of European policy,”

he said.

He noted that Ukraine is a candidate country for EU membership and a candidate country cannot knowingly and deliberately take measures that would make it impossible for EU Member States to secure energy supplies. Ukraine either misunderstands its own situation or does not take the objective of joining the European Union seriously, he added.

Via MTI, Magyarország Kormánya; Featured image: MTI/Soós Lajos