"You always have to think about everything," said Finance Minister Mihály Varga at a press conference when asked if he would accept the invitation if the prime minister nominated him to head the central bank. Before the two-day EU summit starting on Thursday, the head of the ministry said that all calls for a boycott had been repelled, so the informal meeting of the EU economy and finance ministers, where all member states are represented, could be held in the Hungarian capital. So far, he has not confirmed that the prime minister has asked him to lead the Hungarian National Bank, but he indicated that everything has its time.
said the head of the ministry.
According to the Minister of Finance, it is unworthy and regrettable that not everyone reciprocates the constructive attitude of Hungary at the time, on the other hand, the Hungarian government is still a supporter of dialogue.
The intentions to make the Budapest meeting impossible did not reach their goal, all EU countries are represented at the summit
- said the minister, adding that central bank governors will also be present. According to him, all conditions are in place for the EU summit to be successful. This is important because Europe is facing serious challenges, which is why the Hungarian presidency has set the goal of improving competitiveness. This includes defense policy, demography, cohesion policy, and the issue of agricultural subsidies.
Demography, migration and green transition in the focus of the EU summit
Mihály Varga said that they will focus on three areas in the coming days: these are the green transition, demography and support for low-income countries in the management of migration. In connection with the first, he pointed out that the size of the task is clearly indicated by the fact that compared to the pre-Covid period, the expenditures should be doubled. Hungary has good examples, previously 3 percent of the population owned government securities, since then it is 21 percent, so the involvement of the population in the financing of the green transition was effective. Regarding the demographic challenges, he said that it has a negative effect on many areas, but it can be influenced from several directions through specific policies.
Turning to the third topic, he mentioned countries that are the originators of migration. According to him, Hungary has consistently advocated for years that problems should not be imported, but that sending countries should be helped.
The Hungarian position proved to be correct
said Mihály Varga.
Hungarian family policy is also in focus
State Secretary for Family Affairs Zsófia Koncz said that since 2010, 30 measures have been introduced, among which she mentioned baby support, mortgage loan waivers, car purchase support for large families, and grandparents' care. He also pointed out that nursery places have doubled in ten years.
The government is constantly working to expand family subsidies, so you can apply for the nursery subsidy again from September, and from the first of October, self-employed people who opt for special taxation can more easily get access to the village csok or the nursery school.
He also indicated that the government aims to double the amount of the family tax allowance.
Will Mihály Varga become Central Bank Governor?
Did you receive an invitation from Viktor Orbán to lead the central bank, the Reuters reporter asked.
This will be due in March, all in due time
he replied, adding that the prime minister's authority to nominate the president of the central bank does not make him feel competent to answer this question.
He emphasized that price stability is the primary task of the central bank, but this does not preclude cooperation with government institutions.
According to Mihály Varga, investments, exports and consumption should be at the center of growth. He pointed out that international organizations also consider 3.5 percent economic growth to be realistic. According to him, real wages will enable consumption to recover over time, and in addition, with the reduction of corporate loan interest rates, corporate lending will also be activated. At the same time, he acknowledged that the set of problems of the German economy is a big challenge. "An increase of between 3 and 5 percent is the Prime Minister's expectation, he answered the question of how feasible such a large GDP expansion is.
You always have to think about everything
– he said this when asked by ATV whether he would take on the leadership of the central bank if the prime minister asked him to.
The government is following the fiscal path that was planned
Regarding the budget deficit, he said that the government is ready to consider decisions. He already acted in this way in May-June, and the budget situation improved. On the other hand, protective measures were taken to improve the budget situation. They see that these have already improved the state of the budget, he said about the August data that they are moving on the fiscal path that was planned. But he added that there is a three-year scenario to reduce the budget deficit.
There are results that cannot be touched by the government
"There are results from which the government does not wish to back down," said the minister regarding the August deficit data, adding that no decision would be made to destroy potential growth. Therefore, pension payments will also remain, for example. He reminded him that the state debt was reduced from 80 percent to 65 percent, which has given the government room for maneuver ever since. According to Mihály Varga, the state does not have a liquidity problem, there are currently more than HUF 3,000 billion in the government's cash account.
We are in a stable, consolidated position
said the head of the ministry.
Photo: Boglárka Bodnár/MTI
