"I will speak with Putin this morning," says Hungary's Orbán

14-month pension

Orbán said that

the 14th-month pension plan requires economic strength, which is linked to peace.

"Peace is needed for the 14th-month pension. Every year, we gave back one week's pension – that is how the 13th month was re-introduced. We are keeping the introduction of the 14th month pension on the agenda, and

it could be introduced in two to four years.

As for the fiscal impact of a 14th-month pension, public finances are already under strain. The 2026 deficit target of 3.7% of GDP is widely considered unattainable, with markets forecasting a shortfall of 5.0–5.5% due to the measures announced by the government over the past few months. This would jeopardise the cabinet's key objective of reducing the shortfall compared to this year.

Analysts have warned that measures such as the 14th-month pension, the one-off food voucher for pensioners worth HUF 30,000, tax exemptions and allowances all boost consumption and, ultimately, inflation.

The government could enhance predictability by implementing the 14-month pension in stages, as it did with the 13-month pension. This would allow pensioners to plan ahead, which would dampen the impact on consumption. The cost of the 14-month pension is currently estimated at HUF 600 billion. There would also be second-round impacts, as the increased expenditure would take away funding from other areas. The larger deficit would need to be financed somehow, which means more debt issuance, higher public debt, and greater interest expenses.

Pension system

Regarding the pension system, the Prime Minister said that no system is ever completely free from controversy. The amount of pension you receive depends on two things: your length of service and how much you have paid in contributions. Introducing a new element would be extremely risky.

However, if more children are born, the system can be sustained in the long term. According to Orbán, this can still be guaranteed for 20–25 years.

There is no need to change it at present.

Even if there is peace, we still need weapons

Orbán claims that Hungary's economic growth could double or even triple if there were no war. He believes that the costs and inconveniences endured by Budapest residents are worth it for this reason.

He says that even if a peace agreement is reached, we will still need a European security plan,

but not because we should be afraid of the Russians.

He believes that it is not our nuclear capabilities that need to be improved, but our conventional weapons capabilities, so that we can defend ourselves.

We must demonstrate strength because peace requires strength. We need a military development programme,

he said.

Orbán will also speak with Vladimir Putin on the phone

The "Budapest peace summit" could take place within two weeks. Orbán said that he spoke with Trump at length on the phone yesterday. He also spoke with the Russians, and

I will speak with Putin this morning,

Orbán said.

They are also discussing the possibility of an official Hungarian-American meeting in Washington.

According to him, Hungary is the only country in which negotiations with presidents can be held. "They were looking for a predictable environment," he added.

Yesterday, the US President announced that Hungary should prepare for a meeting of foreign ministers within a week, to be followed by a meeting of presidents in Budapest a week later. Yesterday, Orbán issued instructions for the establishment of an organising committee, and work has begun.

According to Orbán, for the time being, the European Union is not negotiating with Vladimir Putin as 'Donald Trump's support team', even though he believes that Europe should pursue its own diplomatic channels and establish an independent Russian–EU dialogue.

Cover photo: MTI Photo/the Prime Minister's Communications Department /Zoltán Fischer