Hungary PM: behind us is the most difficult year in the last 30 years

This year has been the most difficult year for Hungary since the fall of communism, Orbán said, noting among the positive things that we have managed to stay out of the war in Ukraine, which has so far only had losers.

The challenge for 2023 is to avoid recession, he added.

"This year's result is that we have been able to finance the increased energy prices, last year we paid €7 billion, this has increased to €17 billion this year, for the same amount. We have already solved this €10 billion shortfall in financing for 2023," Orbán said.

Never before have so many people worked in Hungary as now, with employment at a 30-year high. "And it was also an extraordinary achievement this year to reach an agreement with the EU", said the Prime Minister.

He said the most important thing next year will be to get out of the war and the European recession, to get inflation into single digits on a year-on-year basis by December, and to extend the tax exemption for young people up to the age of 25 to all women who have children up to the age of 30.

In response to a question from the Financial Times, Orbán said that the existence of an independent and sovereign Ukraine is also in Hungary's interest. However, what can be saved from Hungarian-Russian economic relations must be saved. "We did not negotiate with the EU in package deals, we discussed each issue separately, we did not want to be in a debt community," he said, referring to the plan to jointly assume Ukraine's debt.

"I do not think that Ukrainians are fighting for the security of Hungarians, Ukrainians are fighting for Ukraine. Hungary's security is guaranteed by NATO. But if you look at the map, you can understand why Poland thinks differently," Orbán said.

With regard to the dismissal of teachers, he called on educational workers to choose legal forms of protest. 10% wage increase, that's what the Hungarian economy can afford.

We have no plans to change the current system of utility prices, Orbán said in response to a question on whether bills would change if the price of TTF on the Dutch gas exchange moved significantly. The essence of the Hungarian system is that prices have been unchanged for a long time.

According to the Prime Minister, next year's budget is planned for an economic growth of 1.5%.

There are several types of household support elements, one is phased out, the others stay. The baby loan has just been introduced, we have to maintain it as long as we can. For many years it is better not to touch, only to strengthen, rather than weaken family support, Orbán said.

Speaking about the Visegrád Four, he said that today the V4 does not yet have a common energy policy, no common energy procurement, no common energy distribution. There are differences of opinion on the war, and it is difficult to agree on energy, but the V4 could have an energy dimension in the future.

He added that Hungary has reached an agreement with Qatar on energy issues, on energy procurement, and also on investments in Hungary.

"There is an age-old professional disagreement with bankers on price controls and price caps", Orbán added in response to a question on whether price caps have a significant impact on inflation.

In response to a question on the steps taken to reduce dependence on Russian energy, the Prime Minister says that it would be good if we could break away from imported energy, the question is whether we can be self-sufficient or not. The question is not whether it is Russian or not, but whether we can be independent. "There is one thing that causes bad feelings, and that is [nuclear power plant] Paks 2. At the time, we decided in favor of it in order to reduce the country's energy dependence. Nuclear energy would be the option with the least exposure," Viktor Orbán said. "We must protect the nuclear energy industry from sanctions, and there have been attempts to do so," he stressed. Orbán also added that the country is in negotiations with ports on LNG.

Once Paks 2. is completed, we will be able to get off natural gas to a very large extent,

Orbán stressed.

On the subject of whether or not the euro will be introduced in Hungary, Orbán said that "joining a broader currency area can provide stability, but my experience is that it slows down economic growth, so there are several arguments against it." If the Hungarian economy wants to grow and catch up, it is better to stay outside the eurozone, but when stability becomes a priority, it is better to join, Orbán explained.

Asked whether the annual budget for 2024 would be submitted in the spring, Orbán said that it was a difficult question that he could not answer now. "I believe that the current budget planning, which will be adopted in the summer, is successful, but if the circumstances are very hectic, it is worth thinking about. The methodology for preparing the next budget can be communicated in March or April at the earliest when we can see what the year will be like," Viktor Orbán said.

About the sanctions on Russia, Orbán said that "we oppose all sanctions, if it were up to us there would be no sanctions policy, so we don't vote in favor of them. But in the end it is the Union that decides and we do not veto them. I have not supported any of them, and I will not support them in the future, but we will not block them, for the sake of the community."

Asked today whether there is a way for Fidesz to return to the European People's Party, the Prime Minister said that the People's Party can no longer lure Fidesz back, as it already has a new seat. Later, at one point in the press conference, he also said that the Hungarian government was actively working on a new European party alliance and that further developments are expected after the Polish elections.

Portfolio has also previously reported that a new right-wing force is being organized in the European Parliament. There seems to have been no progress on the matter recently, but it seems that negotiations are going on in the background.

In response to a question on Sino-Hungarian cooperation, Orbán said that China and South Korea are already the leading investors in Hungary "We are opening up to the East, and we will continue to do so."

We must do everything we can to ensure the best possible economic relations between China and Hungary.

According to him, China is already strong in terms of technological knowledge and production chains. "We also want to go to China and invest, we want China to be a destination for Hungarian capital."

On the subject of the aid for Ukraine in the current war situation, the PM said that "we have refused to train Ukrainian armed forces in Hungary, but we are involved in the training of paramedics and medical soldiers."

Cover photo: M1