Orbán calls for higher wages at EBRD conference

Budapest, November 10 (MTI) – Prime Minister Viktor Orbán has called for a “firm increase” in wages in the Hungarian economy, which he said required increasingly competitive businesses.

Addressing a conference organised by the European Bank of Reconstruction and Development (EBRD) in Budapest, Orbán said that reducing corporate and personal income taxes, as well as employer contributions were necessary to enhance competitiveness. He added that red tape should be cut, while efforts are needed to make the labour force more competitive and increase competition in the banking sector, too. Concerning Hungarian banks, Orbán said that the sector was profitable but it was lagging behind the most advanced countries in terms of efficiency and new technologies.

Competitiveness is no longer supported by cheap labour alone, Orbán said, adding that both Hungary and the entire region must face the phenomenon of wage pressure, a demand of higher wages dictated by political realities and economic development.

Summing up his government’s achievements in the past six years, Orbán said that the number of taxpayers has increased from 1.8 million to 4.4 million, the national debt was reduced from 85 percent of GDP to 75 percent, while a budget deficit of over 7 percent has gone down to below 3 percent.

The Hungarian government’s economic policy is not in the mainstream of European economics, Orbán said, but added that it was a successful model, and its components should be incorporated into European policies.