Orbán promises tax cuts and simpler regulations – UPDATE: Ukraine would ‘ruin’ EU’s economy

Prime Minister Viktor Orbán promised to streamline and cut taxes and reduce red tape for entrepreneurs at an economic policy forum on Saturday.

At the conference organised by the Hungarian Chamber of Commerce and Industry (MKIK), Orbán said the chamber’s leadership had asked the government to simplify taxes and cut red tape, adding that he believed the best way to reduce taxes was to streamline them. “The chamber couldn’t have found a better partner than us,” Orbán said. “I think we can reach an agreement on this.”

He said the government was prepared to reach a clear and feasible agreement with the chamber’s leadership. The prime minister proposed that the terms of the agreement be implemented by July 1 and should include tax cuts, streamlined taxes and reduced red tape.

Orbán: ‘We are and will remain the government of tax cuts’

Addressing the economic policy forum, Orbán said: “We are and will remain the government of tax cuts.” Hungary is in 7th place in the latest ranking by the Tax Foundation of the tax competitiveness of developed countries, Orbán told the conference organised by the Hungarian Chamber of Commerce and Industry (MKIK). “There is a reason why [the country] isn’t ranked first; this is what we have to work on,” he said.

The prime minister said it was clear from the recent economic policy announcements — particularly the lifetime personal income tax exemptions for mothers — that the government had introduced an element into the tax regime that would “define it in the long term”. He outlined a tax regime applying low taxes and tax breaks to incentivise people to work and start families.

Orbán: Giving up Hungary’s anti-war stance at last minute ‘would have been a crime’

Hungary has been fighting to stay out of the war for three years, and giving up that stance “now that the Americans are finally” share the government’s stance “would have been more than a mistake, it would have been a crime”, Orbán said.

“For three years we struggled against international attacks in order to avoid getting dragged into the war,” Orbán told the conference. “We didn’t send weapons or money, except for humanitarian purposes.” “To give that up at the last minute — regardless of how much pressure we’re under — would be a mistake,” he added. Orbán said the Hungarian economy had lost 20 billion euros since the start of the war in Ukraine three years ago. “So if there’s a country that has a vital interest in the war ending as soon as possible, it is Hungary,” he said.

The prime minister said Hungary welcomed that the United States now shared its position on the war, urging the country not to heed Europe’s call to send weapons and money to the conflict. “Let’s protect ourselves and stay out of this,” he added. As regards what could be expected after the war, Orbán said Hungary had no reason to be concerned about its security, arguing that “NATO will still exist after the war and Hungary will be a member”. He added that Hungary’s two closest NATO allies, the US and Türkiye, had the two strongest armies in the alliance.

“Another thing that will still exist after the war is the strategic alliance between the United States and Hungary,” Orbán said. “The political alliance has already been established, and we’re working on the economic aspect,” he said, signalling a Hungarian-US economic cooperation package “that will be of significant help for the Hungarian economy”.

Orbán calls for change in EU ‘not seen for 20-30 years’

The European Union must undergo change on a scale not seen for 20-30 years, Orbán said, urging the bloc to shift from fiscal conservatism to “the logic of a developer state”. He said that though criticism of the EU’s leadership may be warranted, “in fairness, we should keep in mind that the European Union has to do something that goes against the existing logic of its operations”. He added that it was not certain that the EU would be capable of making that change.

Orbán said that Germany, as the EU’s strongest member, had a decisive role in shaping the bloc’s economic philosophy, noting that Germany is preparing an 800 billion euro package for infrastructure development and defence spending.

“To do this, Germany is giving up its debt brake rule because … this money will have to be borrowed,” Orbán said. He added that this meant the EU’s deficit-to-GDP ratio was likely to exceed the 3 percent threshold which the EU deems acceptable under its current rules.

Orbán: Development funds must be spent on provinces

Though the government is not abandoning the development of Budapest, it intends to mobilise the development funds at its disposal to help the provinces catch up with the rest of the country, Orbán said. Budapest’s economic weight is decisive for the national economy, but the difference in development between the capital and rural Hungary is unsustainable, he said.

Budapest’s level of development is at 165-167 percent of that of the European Union, the prime minister said, noting ongoing development projects such as the southern ring railway line, the addition of a new campus at Pazmany Peter Catholic University, the renovation of the Buda Castle and the development of the integrated tram network.

Orban said no new major projects would be launched in Budapest because the government had to mobilise development funds for projects outside the capital. The prime minister said he expected the government to be able to help the country’s southern region catch up with the more developed parts, just as it had done with the eastern regions.

UPDATE – Orbán: Allowing Ukraine to join EU would ruin Europe’s economy, must be prevented

Allowing Ukraine to join the EU would end up ruining Europe’s economy, “so this must not happen”, Orbán said, adding that Hungary’s say on whether Ukraine joins the EU would be “decisive”. Orbán said Hungary must “make clear” its position on the associated financial burdens, and he urged the public to respond to a public survey on the subject.

Addressing the Hungarian Chamber of Commerce and Industry (MKIK) event, Orbán said the EU decision on Ukraine, made without Hungary’s vote, “affects us” as Europe would finance the Ukrainian army, which is projected to be one-million strong after the war. It would also finance the Ukrainian state rearming itself and fast-track its EU accession to offset the decision not to admit the country to NATO, he said.

This would buckle Europe’s economy, so this must not be allowed to happen, he added. Neither can Ukraine’s EU membership nor its financial programmes be established “without us”, Orbán declared. The prime minister said this matter was of such weight that it could determine Hungary’s fate in the medium and long term.

Hungary’s say on whether Ukraine joins the EU is “decisive”, Prime Minister Viktor Orbán said at an economic policy forum on Saturday, adding that “the Brussels plan” to allow its EU membership would ruin Europe’s economy.

Orbán said Hungary must “make clear” its position on the associated financial burdens, and he urged the public to respond to a public survey on the subject.

Addressing the Hungarian Chamber of Commerce and Industry (MKIK) event, Orbán said the EU decision on Ukraine, made without Hungary’s vote, “affects us” as Europe would finance the Ukrainian army, which is projected to be one-million strong after the war. It would also finance the Ukrainian state rearming itself and fast-track its EU accession to offset the decision not to admit the country to NATO, he said.

This would buckle Europe’s economy, so this must not be allowed to happen, he added.

Orbán declared that whereas Ukraine’s financial programmes could be established without Hungary, its EU membership could not.

The prime minister said this matter was of such weight that it could determine Hungary’s fate in the medium and long term.

At the conference held in the Puskas Arena, Orbán said the Hungarian Chamber of Commerce and Industry’s leadership had asked the government to simplify taxes and cut red tape, adding that he believed the best way to reduce taxes was to streamline them.

“The chamber couldn’t have found a better partner than us,” Orbán said. “I think we can reach an agreement on this.”

He said the government was prepared to reach a clear and feasible agreement with the chamber’s leadership.

The prime minister proposed that the terms of the agreement be implemented by July 1 and should include tax cuts, streamlined taxes and reduced red tape.

Referring to past cooperation between the government and business, he recalled that before the 2010 election, Fidesz, then in opposition, struck an agreement with businesses which was brought under the umbrella of the programme named after Sandor Demjan.

Accordingly, burdens on businesses were reduced, state capital and loan programmes were launched, one million jobs were created in ten years, and 50 percent of EU funds went to small and medium-sized enterprises.

Later fulfilled commitments included boosting the Hungarian economy to the level of the EU average and maintaining an investment rate above 25 percent. Also, it was promised that the jobless rate would hover around 4 percent and the government’s investment policy would lead to capital exports, he said.