Hungarian government: Hungary is truly liberal, unlike ‘illiberal’ Brussels – UPDATE

Hungary is “liberal in the classical sense of the word”, the head of the Prime Minister’s Office said at a talk at the Károli Gaspar University of the Reformed Church in Budapest on Wednesday evening, arguing that, “unlike Brussels”, Hungary did not restrict the freedom of speech.

Hungarian public life makes room for diversity of opinion, “but we see the exact opposite of this in Brussels”, Gergely Gulyás said, insisting that “Brussels is actually the one that is illiberal”.

Asked by László Trócsányi, the university’s rector, how he thought Hungarians saw the European Union, Gulyás said he believed that like him, the Hungarian people had “a very bad opinion of the EU”, arguing that there was nothing happening in the bloc that he considered to be right.

Gulyás, added at the same time, that this did not change the fact that Europe had to be a unified economic community in the global economic competition of the 21st century, which he said the EU could guarantee.

Govt to roll out pensioners’ VAT rebate scheme in H2

The government will introduce a VAT rebate programme for pensioners in the second half of the year, Gulyás said at a press briefing on Thursday. He said the government had mandated the national economy ministry to hammer out the details of the programme announced by the prime minister in his annual state of the nation address. The VAT rebates will definitely apply to vegetables, fruit and dairy products, and add up to HUF 10,000-15,000 per month, he added. Pensioners may avail of the rebates by using a card.

Gulyás: USAID funding ‘biggest corruption scandal’ in Western world’

The prime minister has appointed Fidesz MEP Andras Laszlo to investigate American aid agency USAID’s foreign funding programmes involving Hungary, the head of the Prime Minister’s Office said on Wednesday, on Thursday, calling the case “the biggest corruption scandal in the Western world”.

The ruling Fidesz-Christian Democrat parliamentary groups will submit legislative and possibly even constitutional amendment proposals aimed at combatting foreign interference in public affairs “within weeks”, Gergely Gulyás said.

He said the “USAID affair” linked to the former US Democratic administration and uncovered by US President Donald Trump and Elon Musk, the head of the Trump administration’s Department of Government Efficiency, was the “biggest violation of sovereignty and the biggest attempted interference operation” in the Western world. “Media outlets, journalists, political activists and so-called civil organisations capable of influencing public opinion were bought off,” Gulyás said.

The Hungarian government believes the aspects of the case concerning Hungary call for the broadest possible investigation, he said. The prime minister has appointed MEP Laszlo to serve as the government commissioner to gather the evidence in the case concerning Hungary. He will be expected to reach out to American party organisations and compile a report identifying the recipients of USAID funding in Hungary, Gulyás said. The report will also detail how and with what purpose the previous Democratic administration had influenced Hungarian public opinion, he added.

“The practice of using money to influence Hungarian public opinion must be put to an end once and for all,” Gulyás said, adding that this was forbidden regardless of whether it came from Russia or the United States.

Hungary rolls out Europe’s biggest tax reduction programme

New measures announced by the government will give Hungary the “most comprehensive” tax system supporting children and employment in Europe or even the world, Gulyás said. Gulyás said the government had discussed the details of Europe’s biggest tax reduction programme at a cabinet meeting on Wednesday.

From October 1, a personal income tax exemption for mothers of three, affecting 250,000 taxpayers and leaving households with an annual HUF 200bn, will be rolled out, he added.

PIT exemptions will be introduced gradually for mothers of two, first for the 120,000 taxpayers under 40, from 2026, with an annual fiscal impact of HUF 120bn. The exemption will be extended to 210,000-220,000 mothers of two between 40 and 50 from 2027, to the close to 230,000 taxpaying mothers between 50 and 60 from 2028, and to 110,000 mothers over 60 from 2029.

Gulyás said the government’s plans to fight inflation and reduce food prices were discussed at Wednesday’s cabinet meeting. The government was presented with an analysis of the current situation by Marton Nagy, the economy minister, adding that January data showed “an excessive rise in food prices, the most dangerous trend which must be addressed”. Nagy has already met with representatives of large food chains and “a comprehensive action plan involves introducing market protection measures, profit restrictions and cutting red tape for companies in the sector,” Gulyás said. He said the measures could bring positive results in March, but failing that, the government would set prices, but only as a “last resort”.

Concerning the VAT rebate programme for seniors, Gulyás said Orbán has instructed the economy minister to draft the details.

At its meeting, the government decided that its measures should cover vegetable, fruit, and dairy produce, Gulyás said, adding that seniors could expect to receive a refund between 10,000-15,000 forints (EUR 25-37) each month.

Meanwhile, the minister said the “USAID affair” linked to the former US Democratic administration, uncovered by US President Donald Trump and Elon Musk, the head of the Trump administration’s department of government efficiency, was the “the biggest corruption scandal … the biggest violation of sovereignty and the biggest attempted interference operation” in the Western world.

“Media outlets, journalists, political activists and so-called civil organisations capable of influencing public opinion were bought off,” Gulyás said. The Hungarian government believes the aspects of the case concerning Hungary call for the broadest possible investigation, he said.

The prime minister has appointed MEP András László to serve as the government commissioner to gather the evidence in the case concerning Hungary. He will be expected to reach out to US party organisations and compile a report identifying the recipients of USAID funding in Hungary, Gulyás said. The report will also detail how and with what purpose the previous Democratic administration influenced Hungarian public opinion, he added.

Gulyas said the government commissioner’s investigation would uncover how the foreign donations had made their way to Hungary, who the beneficiaries were and what they were spent on. “The practice of using money to influence Hungarian public opinion must be put to an end once and for all,” Gulyas said, adding that this was forbidden regardless of whether it came from Russia or the United States.

He said the government wanted parliament to pass the related amendments before Easter. He noted that similar investigations had been launched worldwide, noting that Germany’s conservative Christian Democratic Union (CDU) had also initiated one on the “unprecedented interference” in German domestic affairs.

Meanwhile, Gulyas said government will make several proposals to amend Hungary’s constitution. The constitution will stipulate that “there are two sexes: female and male”, he said. Further changes could ensure the right of small communities to self-defence “to ensure that small communities can decide whom they want to live together with,” Gulyas said.

He said the government had received such requests from many mayors, adding that the minister of public administration and regional development would facilitate consultations with local leaders on the subject. Furthermore, a prohibition on drug abuse will also be enshrined in the constitution, as will stipulations that “the right of children to physical, psychological and moral development precedes all rights with the exception of the right to life”, Gulyas said.

Government spokeswoman Eszter Vitályos said state investments with a value of over 70 billion forints (EUR 174.9m) have been completed in recent weeks. German engineering giant Bosch inaugurated a 54 billion forint 100,000sqm regional logistics and distribution centre in Miskolc, in north-eastern Hungary, she said.

Health-care related upgrades included the renovation of the Velkey László Paediatric Health Centre in Miskolc and the addition of a new operating theatre at the Kaposi Mor Teaching Hospital in Kaposvar, in western Hungary, she said.

The government has also completed 11 urban development projects with a combined value of 11.3 billion forints, Vitályos said. Regarding the government’s 21 point economic action plan, she said more than 12,000 people have applied for the zero-interest credit for young employees. Also, more than 1,800 businesses have registered for a scheme designed to support the competitiveness and investments of SMEs, she said.

Gulyás said he had been certain that “foreign mechanisms to influence public life (in Hungary) will be radically reduced with the change of administration in Washington.”

Asked about the funds allegedly totalling 30.5 billion forints disbursed by the “Soros network” in Hungary, Gulyás said the incoming government commissioner would reveal the figures in due course. He said political parties eligible for financing benefitted from over one billion forints a year, adding that “the magnitude of foreign influence should be compared to that amount”.

Answering another question concerning USAID activities in Hungary, Gulyás said Budapest Mayor Gergely Karácsony should clarify “how his negotiating partners influenced municipal decision-making”. “This is a problem for democracy and sovereignty … if those paid from abroad are paid for certain activities and they are expected to deliver something … any state would seek to prevent that,” Gulyás said.

Asked about the incoming USAID government commissioner’s work for the Megafon Incubator Centre, Gulyás said the centre had “repeatedly declared that it had not received any funding from abroad or from the Hungarian state”.

He was asked if the Hungarian government, similarly to the US, would send a government commissioner to Ukraine to investigate possible attempts at influence, Gulyás said: “When Ukraine has a government that declares that the previous government sought to influence unlawfully, or at least improperly, and the Hungarian public and expresses its readiness to investigate, the Hungarian government would delegate a commissioner.”