Mihály Varga: Hungary is emerging from the crisis with an advantage
Mihály Varga reminded that two years ago the Hungarian economy was the second most dynamically developing economy in Europe, and today, even after a world crisis, the Hungarian economy is one of the fastest restarted economies in Europe. The recovery would not have been so rapid if the pandemic had not hit a strong, resilient Hungary, he added. He pointed out that the global economic downturn was 3.6 per cent in 2020 and 1.7 per cent in 2009, meaning that the Gyurcsány-Bajnai government had to deal with twice as much crisis as in 2008.
However, the pro-crisis policy of the Fidesz government against the left, which is bankrupting the country, is not about austerity and tax increases, the measures have protected Hungary from a double-digit decline and allowed for record economic growth, said Mihály Varga.
The Minister of Finance explained that the performance of the Hungarian economy has already exceeded the pre-epidemic level and – with a one-year delay due to the pandemic – but it also fulfilled the promise to form a one million government, as 4.7 million people already work in Hungary. The results are confirmed by the fact that the country was upgraded during the pandemic and Hungary was ranked five places ahead in the competitiveness ranking, he said.
Mihály Varga emphasized that the success of governance is not an end in itself, it makes sense if the results are also perceived by the Hungarian people. Emphasizing the importance of strengthening families, he listed the support – the 2021 PIT repayment for families raising children, the payment of the pension premium for young people under the age of 25, the resumption of the 13-month pension payment and the HUF 200,000 increase in the minimum wage. The budget also ensures that HUF 2,000 billion in tax cuts can be implemented this year and next.
The Minister of Finance also pointed out that the Hungarian left and the Brussels bureaucracy did not take part in either the fight against the epidemic or the restart, but the government defended Hungary with 30 per cent of gross domestic product.
He noted that in the midst of a Europe-wide crisis, the left would return to market prices and Brussels, with its flawed climate policy, would place an additional burden on families. However, the government fixed the overhead prices in time, so today the lowest energy prices in Europe are paid by Hungarian households, he emphasized.
He also talked about the fact that despite the fact that Brussels is not willing to spend on the costs of border protection, Hungary has spent HUF 590 billion from national resources to protect the borders of Hungary and the rest of Europe.
The government will fight the challenges “relying on our own strengths” and putting the interests of the Hungarian people first, Mihály Varga summed up. According to the Minister of Finance, we can now see that Hungary is emerging from the crisis with an advantage, and we can expect a sustained high growth rate in the coming years as well. He put it this way: the government will continue the work that was the most successful period in Hungarian economic history in the previous decade. (MTI)