Hungary is currently under a left-wing economic policy that points toward tax increases, said Viktor Orbán, former Prime Minister and president of Fidesz, in an interview on the Hír TV programme Bayer Show, in which he assessed the half-year that has passed since the parliamentary elections, on Monday evening.
The politician stated that Hungary had operated under a work-based economic policy for 16 years, which had now been changed. He added that he now sees tax increases as the key element of the government’s economic policy.
As an example, he cited the flat-rate tax for small taxpayer businesses (kata), the monthly amount of which was raised from 50,000 to 100,000 forints. Viktor Orbán said the change had doubled the tax burden on 138,000 kata taxpayers and — taking their family members into account as well — could affect around half a million people.
He objected that, in his view, there is no explanation for the tax increase, and argued that opening up the kata system to others does not in itself justify doubling the previous tax burden.
He said that in searching for an explanation for the current measures, he concludes that tax increases are characteristic of left-wing economic policy. “This is the situation now too — left-wing government, tax increases,” he said.
The former Prime Minister indicated that in the current state of the Hungarian economy, any tax increase is harmful, and that economic growth could be stimulated through tax cuts. In his view, raising taxes on businesses and employers could reduce their capacity to create jobs.
Speaking about the wealth tax, he said that taxing successful businesses could hold back investment, which would ultimately harm workers. He added that business actors also consider the measure unfavourable, as it weakens companies and reduces the potential for expanding employment.
According to Viktor Orbán, aligning the interests of employers and employees requires a predictable economic policy and tax cuts that incentivise businesses. As an example, he cited the three-year wage agreement concluded with trade unions and employers during the previous government period.
He argued that the current economic performance is also partly a result of the large-scale industrial investments that previously came to Hungary, including developments by BMW, Mercedes, and the Chinese BYD. At the same time, he said that in recent times no new decisions have been made to incentivise investment, and that the direction of economic policy is, in his view, pointing towards increasing the tax burden. He pointed out that businesses must be supported through predictable economic policy, tax cuts, and incentives, and that successful entrepreneurs should not be punished but recognised for creating jobs.
He said that, based on his meetings with Hungarian entrepreneurs and businesspeople, he sees Hungarian “agriculture in serious trouble, the construction industry at a standstill, and tourism experiencing a double-digit decline.” He stated that everywhere he looks he sees the “Hungarian economy hitting a wall,” with foreigners already bringing buyers for Hungarian assets that are becoming increasingly cheap.
Regarding the Russia-Ukraine war, Viktor Orbán said that under the previous government Hungary had not taken sides with either country, whereas after the April elections the new government abandoned that position. He put it this way: today Hungary is not neutral, but anti-Russian and pro-Ukrainian.
According to the former prime minister, Hungary is currently being governed economically by neo-communist, radical left-wing management, with the country’s leadership taking money from people, raising taxes, and penalising those who work.
In the interview, Viktor Orbán emphasised that the politicians in prison are innocent and that their cases are political and propagandistic in nature. In his view, Balázs Hankó and Miklós Seszták were taken away for political reasons — in order to use them to level accusations against Fidesz and attempt to eliminate the right wing.
He added that this was also the reason for establishing the National Asset Recovery and Asset Protection Office (NVVH), which he referred to in the interview as a political police force and as the ÁVH. He noted that the Prime Minister makes no secret of the fact that this organisation carries out political instructions. According to Viktor Orbán, things are happening in Hungary today that do not normally occur in a democracy or a rule-of-law state.
The politician pointed out that during Fidesz’s 16 years in government, public assets doubled, foreign exchange reserves reached a record high, and gold reserves grew to 33 times their previous level. In his view, Hungary today is far more modern, up-to-date, and wealthy than it was 16 years ago.
The former Prime Minister also spoke about the gold convoy affair, which he said had nothing to do with abuse of power, arguing that the real aim was the dismantling of the right wing. He described the case as one of Europe’s largest corruption affairs and claimed that Western actors and Ukrainians were also involved.
He objected to the fact that Ukrainian armed personnel with military backgrounds had escorted cash and gold shipments, which, in his view, cannot be reconciled with normal banking operations. He added that the Hungarian authorities had taken action in the matter, and that had they not done so, he himself would have ordered them to.
Viktor Orbán said that following the election defeat, his task is now to reorganise the right wing, and that the process is already 90 percent complete. “I haven’t disappeared — I’m just not the team captain anymore; I’m the coach,” he said, adding that he is currently working on reorganising county and local communities.
He said that three or four further changes of MPs are also planned within the parliamentary group by the end of the year, with the process being managed by faction leader János Bóka.
According to Viktor Orbán, the right wing is competitive and could be fully prepared by the end of the year to take on the responsibility of governing the country once again. He added that he will not give a speech at the 23 October commemoration, but will speak at a potential later peace march “when the time comes.”
Artificial intelligence was used for the translation of parts of the original Hungarian text.