Hungary's Orbán unexpectedly puts off purchase of Budapest Airport

Orbán told a press conference after a meeting with French President Emmanuel Macron and leaders of the Visegrad Four countries (Czechia, Hungary, Poland, Slovakia) that the parties have had extensive talks about migration, rule of law issues, the West Balkans, energy, and particularly nuclear energy, as well as the future of the  European Union's Emissions Trading System (EU ETS).

Orbán said:

we are in good shape for the time being, but the budget deficit needs to be watched.

As regards the purchase of the Ferenc Liszt International Airport, a move he has been advocating for months, the PM said the deal should not be sealed before next year's election, considering high inflation and the uncertainties of global finances.

So we'll wait for elections and make a call on this afterwards,

he said..

The Finance Ministry announced the delay of HUF 350 billion worth of investments last week in a bid to shore up the budget, i.e. to prevent the deficit to be bloated any further, as it is en route to exceed the annual target which had been revised upwardly five times this year. Since the adoption of the 2022 budget in the summer, the cabinet has decided on economic policy measures that would boost next year's expenditures by at least HUF 1.5 trillion. This limits the government's opportunities for additional spending, including the acquisition of Budapest Airport. Note that the goal is to lower the budget shortfall next year to 5.9% of GDP next year from 7.5% in 2021. This is what Orbán could be referring to when he said the budget deficit also needs to be observed. The delay of the much wanted transaction marks a turnaround in Orbán's previous stance.

Cover photo: MTI/Prime Minister's Press Office/Vivien Cher Benko