👉We wrote earlier that EU money is not a gift, that is our money, we have given our market for it, and if someone tries to hold it back, they are ordinary THIEFS!
It seems that the government is also aware that we have to expect political pressure here until the election, and Brussels will try to steal our own money with "hundreds of tricks". The government is prepared for this, and it is also clear that Hungary is not supported by Brussels: we can stand on our own two feet and even produce above-average economic growth!
In the meantime, we will have time to figure out how to recover the lost money. Eg customs duty, border control, extra tax on western products, etc. etc. Brussels has kicked the accession treaty and the Schengen agreement, which gives Hungary a free hand!
Origo's article: If he wanted to, Brussels could not trip the Hungarian economy
How many times will retirees receive an extra benefit this year, when will their families get back their paid personal income tax, or why is vegetables more expensive? Among many others, Minister of Finance Mihály Varga gave a clear answer to these questions. He also explained why he considered the Brussels objections shameful, spoke of the lies of one of the main communication slogans on the left, and also said that if necessary, the government would oppose US President Joe Biden’s proposal.
Life is more expensive, and according to the left, the reason for this is, among other things, that Fidesz keeps the sales tax high. Are vegetables and milk, for example, really becoming more expensive because of the government?
- This is not the first - and certainly not the last - professional issue in which there is no connection between reality and left-wing opinion. Let's see the facts! It is not only the tax that determines the price of a good or service, Hungarian consumers also know exactly this. If we reduce VAT, prices may fall, but only once, the effect is one-time. Prices are basically determined by market conditions, not sales tax. Thus, for example, if a lot of melon is grown in Hungary and in Europe, the price is low, but if the crop is lower than usual, the crop is expensive. Rising wages, changing transportation costs, and many other things can also play a role. You can see: the price fluctuates, even though the VAT rate is unchanged, ie the left-hand part is false, it is not because of VAT that the products become more expensive.
So what is the reason for the rising cost of living and high inflation these days?
- There are several reasons for its effect at the same time, domestic and international factors also play a role in the development of prices. After the shutdowns due to the coronavirus, farms around the world are now being restarted, but in many cases the supply cannot keep pace with this, which causes a temporary shortage of certain goods and raw materials. This raises prices. A global restart requires a huge amount of energy, and demand for energy is also rising, which is immediately reflected in the prices of many products. Global trade conflicts, such as the one that has now developed between Canada and the United States over certain timber, are also driving up prices. This disagreement also had a significant impact on the price of timber products on world and European markets. In the case of agricultural products, the weather is also decisive: due to the spring frosts, the prices of some fruits and vegetables are now rising in Hungary. In short, neither VAT nor the government makes certain products more expensive.
The question remains: how can inflation be curbed?
- The Ministry of Finance expects that inflation in Hungary will be 4.2 percent this year, and we expect a rate of 3.6 percent next year. As the prices of government items do not change, the means of reducing inflation are available at the central bank, and the Magyar Nemzeti Bank has stated that it considers the rise in prices to be temporary. If the world economy restarts, a larger group of global price drivers will disappear. I am also confident that central banks will use all the necessary means to bring inflation back to around three per cent. Governments do not have much room for maneuver in this matter, and central banks can act on inflation. I could also say that it depends on the ability of monetary policy to act when the issue of inflation is settled in Hungary.
The rate of inflation is also important in raising pensions. Can retirees expect extra benefits at the end of the year?
- This year was special for pensions. There was a 3 per cent increase in pensions at the beginning of the year, but inflation soared unexpectedly, so the government set out to take a special, unusual move in the middle of the year. In June, we implemented a mid-year pension increase: we increased benefits, and the 0.6 percent increase was paid to beneficiaries in a single amount back to the beginning of the year. Hungarian retirees cannot be the victims of the global crisis caused by the coronavirus. If annual inflation is higher than 3.6 percent, and currently, according to the latest calculations, it seems very likely, another pension increase and retroactive payment will follow in November.
The pension premium would also be due in November. Such a benefit, to put it simply, is paid by the state when economic growth exceeds 3.5 percent. Will the state pay a pension premium this year?
- According to our current calculations, yes. In this year's budget, we set aside more than fifty billion forints for this purpose.
Why, what do the current calculations show?
- The first quarter of the year also brought surprising data, the Hungarian economy started to come out of the downturn faster than analysts had previously expected. In this, economic protection measures for 2020 played a key role, and government action was well-targeted and adequate. The latest data suggest that the growth of the Hungarian economy may be higher than 14 percent in the second quarter, and GDP may expand by 6.5 percent throughout the year. We expect another 5.3 percent growth next year, meaning the domestic economy could work off the loss it suffered from the coronavirus crisis in a year and a half.
- Let's dwell a little on this year's growth. In early June, Prime Minister Viktor Orbán announced at a conference of the World Economic Gazette that if the economy performed better than 5.5 percent, families could get back their personal income tax (PIT) paid this year. If I understand correctly, the government itself estimates that the idea may come true.
- Although there is still uncertainty, yes, we are preparing to return the paid PIT to the families early next year. We can return the tax paid to one and a half million taxpayers in one million families up to the level of the average wage.
It was interesting to receive the announcement. Experts speculated that even during the period of recovery from the crisis, even the United States was not so generous with families, while at about the same time the Hungarian left spoke of the government handing out, buying votes and preparing an election budget in preparation for the 2022 parliamentary vote. .
- The difference between the experts and the left is that the former start from the facts, while the latter are not interested in the facts when they say an opinion on something. So let's see the facts again! In both 2014 and 2018, the left accused the government of preparing an election budget, compared to which the deficit was smaller than planned in both election years, meaning that the government was economical in both cases. Unlike the left! At the time of their government, they had accumulated an average deficit of 6.6 percent, but there was also a year when it was almost ten percent. This is called irresponsible distribution, which otherwise ended in bankruptcy of the country. The left accuses us of what he himself did before.
Speaking of critical statements concerning the government's policy: how do you assess that the restart and recovery funds due to Hungary would be withheld in Brussels, citing certain shortcomings in the rule of law and control?
- Brussels is once again trying to turn a purely economic issue into a political issue. We are confident that common sense will eventually prevail, a sensible solution will be found. The Hungarian government undertakes to keep the development of environmentally conscious economic development and the promotion of digitalisation in mind when using EU funds. We are constructive, we cooperate, but it is important to note that Brussels' shameful attitude does not affect the situation of the Hungarian economy. Current calculations show that the performance of the Hungarian economy could grow above six percent this year, even if not a single penny comes from the European Union by the end of the year. We have prepared the necessary government steps for this.
So Brussels would not be able to trip the Hungarian economy even if it wanted to?
"I hope you don't want that, but you wouldn't."
And how would the global minimum tax affect the economy and the Hungarian tax system, ie the idea that the rate of corporate tax should be standardized, so that no one can go below a certain level? The plans last said about 15 percent, while the Hungarian corporate tax rate is much lower, only 9 percent.
- The idea, which can be called the Biden tax because of its most influential proponent, has so far been adopted by 130 countries, but nine have not. Hungary does not support any tax increase, especially not this, which would put a serious competitive disadvantage not only for us, but also for the foreign companies operating in Hungary. We have just consulted with my Polish colleague on this matter, but in the case of Ireland, Cyprus and Estonia, we have several other EU allies. Negotiations on this issue will continue in the autumn in the Organization for Economic Co-operation and Development, or the OECD, and I am confident that a consensus can be reached. We can only represent the Hungarian interest in this issue, and this will be the case even if we have to oppose the proposal of the American President.
1. EU support is not a gift but a license to print money
2. EU funds go to the Member States. - video
So these are not donations, but in return we opened our markets when we joined the EU, we suffered the related damage, we opened our labor markets - said Balázs Orbán in the discussion with Katalin Cseh.
3. EU money is not a gift, we have given our market for it
It is not Orban who wants to take it, but the left! Orban is the one who prevents them from doing this!
4. 75 percent of investment sources are domestic. The remaining 25 percent is not a gift either, we give our market and our workforce for it
5. There is no free EU support
CSABA LENTNER: WESTERN COMPANIES PRODUCED EXTRAPROFIT AND TAKEN THE MONEY BETTER
6. The German EU Commissioner admitted why it is worth supporting Eastern European countries