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Price Freeze Could Become a Reality Again, Says Prime Minister

Hungary Today 2025.02.24.

The spring session of the Parliament began on Monday, where Viktor Orbán addressed MPs. The Prime Minister touched on the economic situation, a possible price freeze and the ongoing debates with Brussels on migration and EU funds.

Mr Orbán began his speech by saying that the workers’ loan scheme had been launched, and that the number of applications received exceeded ten thousand, and was rising steadily. He highlighted that today, young people in Hungary who choose to work and start working pay no personal income tax until the age of 25 and can also get an interest-free loan to start their lives.

Listing the economic measure taken by the government, the Prime Minister reminded that a rural home renovation scheme has been launched for people living in settlements with fewer than 5,000 inhabitants, with a non-refundable grant of 3 million forints (7,478 euros), and pensioners have now become eligible. The preferential VAT rate for the sale of new residential property has been extended and the housing capital program has been launched, which is expected to generate an extra 10,000 new homes a year. Furthermore, people have been allowed to use private pension savings to buy and renovate homes. The Széchenyi Card Program will provide loans at preferential interest rates, a 100 billion forints (249.2 million euros) capital program for SMEs has been launched, and a decision has been taken on the investment stimulus program.

Regarding family policies, a decision was taken to double the child tax benefits in two steps. As a result of the increase, parents will be able to deduct 20,000 forints (around 50 euros) after one child, 80,000 forints (around 200 euros) after two and 200,000 forints (around 500 euros) after three from their tax. It has also been decided that no income tax will be payable on child benefits. Moreover, as the Prime Minister pointed out, a full lifetime income tax exemption for working mothers of two and three children will be introduced.

Viktor Orbán emphasized that this measure is unprecedented in Europe, and described it as the biggest tax cut program on the continent and a huge expenditure.

He added that the government has concluded that they can reduce the deficit even with these measures.

The Prime Minister went on to say that the government has also decided to raise wages, and that these are large increases, although they know that wages can never be high enough. They will only implement wage increases that businesses can meet without laying anyone off. The minimum wage will be increased in three stages, first by 9 percent, then by 13 percent and finally by a further 14 percent. The state will help employers by ensuring that social contributions are always paid on the previous year’s minimum wage. Viktor Orbán said that the minimum wage will be brought within reach of 1,000 euros and the average wage of 1 million forints (2,491 euros).

The Prime Minister also pointed out that teachers’ salaries have been increased and will continue to be increased, and that doctors and health workers have also received pay rises. Water workers have also received an increase, and judicial workers have also started to receive a pay rise. A pay rise for researchers is also being implemented, and uniformed personnel will receive six months’ pay for called “weapon money.” 1,100 billion forints (2.74 billion euros) will be paid out in interest on government bonds, these are retail government bonds, the interest will go to Hungarian individuals, around 800,000 account holders.

On the issue of high prices, the Prime Minister stressed that if no agreement is reached to reduce prices, the government will reintroduce price freezes and commercial profits will also be cut.

On Ukraine’s membership of the EU, Viktor Orbán recalled that it was a European issue and would not be achieved without Hungarian agreement, and at present there were no conditions for membership.

Regarding the political debates with Brussels, Mr Orbán suggested not to repeal the Child Protection Act, but to take further steps to protect children. Furthermore, the government proposes that the constitution should stipulate that men and women live in Hungary. They would also enforce that no one should jeopardize the healthy development of children and the upbringing principles set by parents.

He recalled that

the government also fails to reach an agreement with Brussels on migration, because the migration pact is not accepted or implemented by Hungary, and Brussels abuses its power by punishing Hungary for this.

However, the punishment is still less damaging than letting the migrants in, the Prime Minister underlined.

Viktor Orbán went on to say that the opposition parties are also in on the cases against Hungary – with the exception of the Our Homeland Movement (Mi Hazánk Mozgalom). The European People’s Party – where newly emerged Hungarian opposition party Tisza is a member – and the Socialists – where the Democratic Coalition, led by former Socialist Prime Minister Ferenc Gyurcsány, is a member – have all joined the EU lawsuits against Hungary. But the money they are fighting for keeps coming in, and opposition politicians want to take it away, the Prime Minister said, adding that he calls on them to withdraw the lawsuits, initiated by their political groups, against Hungary.

Mr Orbán emphasized that the government wants not only an economic but also a political breakthrough in 2025. He said that the government had been in a minority on key issues, but that this year the result of the US elections had brought a change. Anti-migration, pro-family and patriotic forces have become the majority in the West, a change the Prime Minister said was triggered by Hungarians in 2010. However, he stressed that a majority alone is not enough, it needs to be enforced and backed by strength and power.

He underlined that, following the example of the US, the network of corruption that dominates the entire political and media world in the West must be dismantled in Hungary too. He said that a government commissioner would be appointed for the task.

Hungarians Have Done Their Fair Share to Change the World, Viktor Orbán Says in Speech
Hungarians Have Done Their Fair Share to Change the World, Viktor Orbán Says in Speech

The Prime Minister is threatening to dismantle the proxy-NGO network by Easter.Continue reading

Featured photo via MTI/Máthé Zoltán


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