In the field of wages, Hungary has historical disadvantages, as salaries started very low at the time of the regime change, Prime Minister Viktor Orbán told Kossuth Rádió Good morning, Hungary! in his show. Raising wages can never be enough, but in this area, employers and employees must come to an agreement, because poor implementation can have unexpected economic consequences, he added.
According to the prime minister, August may be the month in which change occurs, now it appears that inflation may be around 16 percent, and wage growth may even exceed this level. The government is working to ensure that, after August, the increase in wages continues to exceed the rate of inflation on a monthly basis, and it is hoped that this will also be the case for the entire year, Viktor Orbán said.
The prime minister said that after the 2010 elections, it took two years to clean up the ruins left by the socialists and that the country has seen real wages rise since 2012. However, this only lasted until the beginning of this year, as wages could not keep up with the soaring energy prices due to the war and its effects on the economy.
A certain extent of the price increase can be explained, Hungary obtains its energy from abroad,
and this year there are serious supply disruptions due to the war and Brussels sanctions, these two together sent energy prices sky high
- said Viktor Orbán, adding that the country paid HUF 4 thousand billion more for energy than last year.
At the same time, according to him, not all recent price increases were justified, despite the fact that a fair profit is a natural aspiration on the part of traders. In recent months, he pointed out, it was possible to see that the multis kept the price level higher than what would have been justified by the aspect of fair profit.
It is necessary to defend against this, reading into it does not help - said the Prime Minister, noting that the government had to show strength in this area, it had to take action against price speculators. This action brought its results, and the GVH will have the opportunity next year to prevent price speculators from profiting like this once again, emphasized the Prime Minister.
The real takeoff is expected in 2024
Viktor Orbán declared that 2023 was the year of breaking inflation, and 2024 will be the year of restarting economic growth. The prime minister added that this requires loans with lower, more understandable interest rates, so that the engine of the economy can start again.
We have already seen good signs of this in the third and fourth quarters, but the real momentum is expected in 2024
- said Viktor Orbán, then emphasized: both the economy and inflation are actually about people. In order for the economy to function properly, jobs must be created continuously.
Hungary needs an economy structured in such a way that all Hungarians who want to work have the opportunity to work, said the Prime Minister.
More than 4.8 million Hungarians are working today, this figure was one million less in 2010, the prime minister pointed out.
Overhead reduction must be protected!
Regarding the utility reduction, the Prime Minister said: in the first seven months of this year, we gave families HUF 1,078 billion in the form of utility reduction.
"Today, every Hungarian receives HUF 181,000 in support in addition to his salary. That's how much their bill would be higher if there was no overhead reduction," said Viktor Orbán, then added: the European Union does not agree with this system, it increases the level of support, and therefore constantly attacks it.
"The government has to protect this, because if it doesn't, Hungarian families won't be able to pay their bills," declared Viktor Orbán, then added: In a European comparison, Hungarian people pay the least for utilities, so our country also imports the raw materials.
"The government must protect the Hungarian utility reduction, because if it does not, Hungarian families will have to pay HUF 181,000 more"
Viktor Orbán declared.
He said: All this stings the eyes of Brussels because, in a European comparison, the Hungarian people pay the least for electricity and gas, so that Hungary is also forced to import energy sources, at expensive world market prices.
Energy is needed, if there is no energy, the country's economy will stop, the Prime Minister stated. The security of care precedes all aspects. "Péter Szijjártó is right about this, procurement is his responsibility, which he solves brilliantly," he emphasized.
As he said, the situation is complicated. Previously, after the agreement with the Russians, the gas arrived via Ukraine, which Hungary paid for and received. However, sanctions have now been introduced against the Russians in Brussels.
The gas pipeline was blown up, preventing gas from Russia from coming to Europe, Viktor Orbán said, then added
another way had to be found, and that is the gas coming from the south. "This explains the diplomatic operation we ran at the World Athletics Championships"
said the prime minister.
Turkey is a key player in terms of energy supply
Turkey is in control, today Turkish President Erdogan has all the gas that Hungary can get. The prime minister also explained that it is necessary to be on good terms with the Turks and to cooperate, since Turkey is a key country. Gas arrives there from Azerbaijan, and Hungary also buys gas from Azerbaijan, he pointed out.
Europe has closed itself. Turkmenistan also wants to import gas, as he emphasized, this is useful for us, because we need it. He stated that we would produce electricity in Azerbaijan, we could bring it to Europe via an undersea pipeline, and it could arrive in Hungary through Romania, so we could get electricity cheaply.
Viktor Orbán also said that "we agreed with the Emir of Qatar on how to get gas from Qatar to Hungary via Croatia by ship."
"Whoever adapts sooner can gain a head start"
A country the size of Hungary cannot afford to be "stupid", its strength must be in its mind, which means foresight and speed, said the Prime Minister. He added:
whoever adapts sooner can gain a step advantage, even against the big guys.
In recent years, many people have asked why we are looking for cooperation with the Turkish states, and the left even mocked this, but today it is clear that this region will be valued in the coming decades, he stated.
According to Viktor Orbán, the Hungarian government has been building relations for a long time, and they are now paying off, and a serious economic advantage will result from it.
The same applies to the development of the armed forces, he added, which the government already started years ago.
This event is one of the best in the world
In relation to the currently ongoing World Athletics Championships, the prime minister said that the facility hosting the event is fantastic, and also friendly, after entering it, "the malice disappears", despite the fact that there is a huge competition inside. The minister emphasized that it was once again proven that the Hungarians are good hosts, as they still have love for their neighbors due to Christianity.
The prime minister highlighted:
the athletes carry the good news of Hungary, "the athletes themselves speak in superlative terms about Budapest and the Hungarians". Now foreigners say that "we are good hosts, it's a decent country where everyone is welcome, a friendly country, and let's just say it's a country where the Christian roots of love still exist"
he said.
He also said: meanwhile, "life outside of sports also goes on in these facilities". This year, there were more concerts in the Puskás Arena than football matches, "so the claim that it's a waste of money, it's only about sports, and that it's just a hobby for a few people, including the prime minister", is simply not true, because these public spaces "regardless of sports serve all Hungarian people of good will, they provide space for cultural events, conferences, and huge events," he emphasized.
He added: "the flow of cultural productions from the Western world does not stop at Vienna, it is now reaching Budapest".
Source: hirado.hu / MTI / Civilek.info
Cover image: Illustration / MTI/Prime Minister's Press Office/Benko Vivien Cher
