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Budapest Times
17-07-2025
- Business
- Budapest Times
Gergely Gulyás: Whoever supports this budget, finds Ukraine more important than Hungary
At today's Government Info press briefing, Minister Gergely Gulyás described the draft as a 'pro-Ukraine budget' and emphasized that Hungary cannot support it in its current form. According to the minister, the leaked proposal allocates a quarter of the EU's entire budget—€190 billion for Ukraine and €88 billion for enlargement purposes—while cutting funding for cohesion policy and the Common Agricultural Policy. 'They're taking money away from farmers and cohesion and sending it to Ukraine. Anyone who supports this is placing Ukraine ahead of Hungary,' Gulyás declared. The government expressed full solidarity with Hungarian farmers protesting the cuts. Prime Minister Viktor Orbán had earlier warned that the proposal would make European farmers the biggest losers while positioning Ukraine as the primary beneficiary. 'This draft cannot even serve as a basis for negotiations,' Gulyás asserted, adding that the Commission also aims to expand EU bureaucracy by hiring 2,500 new employees and increasing their salaries—moves the Hungarian government considers unjustifiable. In response, Hungary is calling on all political actors to reject the Commission's proposal and reaffirm their support for a cohesive agricultural policy that benefits all EU citizens. The government also urged a return to an objective cohesion policy, free from political conditionality. Beyond budget issues, the government introduced the 'Home Start' loan program. Starting September 1, working Hungarians without their own home will be eligible for a 3% mortgage loan of up to HUF 50 million. The loan—available for a maximum of 25 years—can be used for flats priced up to HUF 100 million or houses up to HUF 150 million, with a price cap of HUF 1.5 million per square meter. The regulatory framework will be finalized by early August. The briefing also addressed growing concerns about Ukraine's internal practices. Minister Gulyás condemned the recent death of Sebestyén József, a Hungarian-Ukrainian dual citizen who died from injuries sustained during violent forced conscription. He stated that any country where such practices occur is unfit for EU membership. 'He was not only Ukrainian, but a European Union citizen,' Gulyás said, calling the lack of response from other EU member states 'shocking.' Hungary has proposed adding three Ukrainian military officials involved in the case to the EU sanctions list.
Budapest Times
11-04-2025
- Business
- Budapest Times
Minister Gulyás: Brussels' plan for Ukraine's EU accession goes against Hungarian interests
At today's Government Info briefing, Minister Gergely Gulyás reaffirmed the Hungarian government's opposition to the European Union's fast-tracked plan to admit Ukraine. He warned that the proposed pace poses serious economic, agricultural, and public safety risks for Hungary. 'Brussels is thinking in terms of a very fast process,' said Minister Gulyás, adding that Ukraine's accession under current conditions would significantly divert cohesion funds from Hungary. He cautioned that the move would also bring challenges to Hungary's agriculture, food industry, labor market, and public security. For these reasons, the government firmly rejects the proposal. The minister also criticized Brussels-funded public opinion polls suggesting Hungarian support for Ukraine's EU membership. According to Gulyás, these surveys serve political interests rather than reflect genuine public sentiment. In response, the government will launch its own national consultation next week, mailing voting forms to households to allow citizens to express their views directly. On domestic matters, Minister Gulyás reported encouraging progress in the fight against inflation. The government's price control policies, including the retail margin cap, have led to a measurable drop in food prices. Compared to data from mid-March, 894 products have become cheaper—103 of them by 40-50 percent. 'This is a working model,' he said, emphasizing that additional agreements with telecom companies and banks will ensure 2024 year-end prices remain fixed through mid-2026. Turning to rural development, the minister announced new initiatives under the Hungarian Village Program. The government will purchase abandoned former savings bank buildings for public use and transfer state-owned properties to municipalities upon request. The 'village caretaker' service will also now be extended to settlements with up to 1,500 residents. Local government employees in towns with fewer than 10,000 people will see salary increases in two phases: 15 percent from July 2025 and another 15 percent from January 2026. Gulyás also addressed concerns about foot-and-mouth disease. While no new infections have been detected, investigations continue into the source of the outbreak, including the possibility of an artificially engineered virus. Gulyás urged the public to respect ongoing restrictions as a precaution. Judicial matters featured in the cabinet meeting as well. The president of the National Office for the Judiciary presented a report, with the government reaffirming its support for a 48 percent judicial salary increase. Minister Gulyás added that where court decisions diverge from government expectations—such as in drug trafficking cases—legislative changes may be considered. Finally, economic measures aimed at supporting families were also highlighted. As part of a broader tax relief strategy, maternity and parental benefits will become income tax-exempt from July 2025, increasing average monthly payouts by HUF 78,000 and HUF 43,000, respectively. State Secretary Zsófia Koncz noted that by 2026, half a million mothers will benefit from full income tax exemption. The government will also extend nursery fee subsidies through mid-2026, allocating an additional HUF 6.6 billion to support young families.
Budapest Times
28-03-2025
- Business
- Budapest Times
Minister Gulyás: Small local shops will receive 1 to 3 million forints to cover operational costs
At the latest Government Info press conference, Minister of the Prime Minister's Office Gergely Gulyás announced a 1.3 percent supplementary pension increase, expected to be disbursed in November. 'This means around 40,000 forints for the average pensioner,' Minister Gulyás said, explaining that the measure aligns with the Central Bank's inflation projection of 4.5 percent for 2025. The minister reaffirmed the government's commitment to preserving pensioners' purchasing power as a matter of fairness and sustainability. The briefing also addressed the government's margin price cap policy. According to the minister, price caps introduced earlier have led to reduced costs for a total of 874 products, with significant cuts observed for items such as flour, milk, and yogurt. 'These goods became 17.4 percent cheaper on average,' Minister Gulyás noted, adding that the government stands ready to introduce further measures if needed. Gulyás also condemned recent traffic blockades in Budapest. A few hundred demonstrators managed to shut down four major bridges, causing massive disruptions for tens of thousands. 'The right to assembly does not override the rights and freedoms of others,' he stressed. He suggested that if judicial interpretations permit actions that paralyze public infrastructure, the legislature will consider its options. Meanwhile, Alpár Gyopáros, government commissioner for modern settlements, introduced the relaunch of several elements of the Hungarian Village Program. These include a support scheme for small local shops, where applicants may receive 1 to 3 million forints to cover operational costs, and a program to install ATMs in every small settlement where there is demand. Gyopáros emphasized that village churches are 'the most important and proudest buildings' of many communities, and hundreds could now be renovated under a newly announced restoration initiative. On other fronts, Gulyás labeled Ukraine's potential EU accession 'absurd and nonsensical,' criticizing attempts to expedite the process. He warned such a move could severely disrupt agricultural policy and cohesion funding. He also confirmed a foot-and-mouth disease outbreak affecting 3,000 animals in northwestern Hungary and outlined restrictive measures in affected areas. Commenting on cultural controversies, Gulyás dismissed the suggestion to place a rainbow symbol resembling the Pride flag on a church as 'distasteful and cynical.' He argued the rainbow is fundamentally a Christian symbol and its political reinterpretation was inappropriate in such contexts. Touching on the ongoing public debate over surveillance metaphors in political discourse, Gulyás clarified that recent references to 'bugs' were symbolic nicknames, not literal allegations. Finally, the minister said Hungary expects over 3 billion euros in EU funds this year, although full access to disputed resources may be delayed until 2026 or 2027. He also reflected on opposition figure László Varju's by-election victory, stating, 'An election result is never the voters' fault,' but acknowledged that the ruling side 'probably did not present an appealing enough alternative.'
Budapest Times
07-02-2025
- Business
- Budapest Times
Gulyás: 'The 13th-month pension is part of Hungary's system and will remain so'
At the Government Info, Minister Gergely Gulyás addressed several key issues, including pension policy, housing programs, and the latest developments regarding the Rákosrendező land purchase. He also responded to questions about external political pressures and Hungary's diplomatic stance. Minister Gulyás reiterated that the government remains dedicated to maintaining the purchasing power of pensions. He emphasized that the 13th-month pension, which was reinstated by the government, will continue despite external criticism. The payment is scheduled for February 12, with bank transfers processed first, followed by postal deliveries. The initiative represents a significant financial commitment, with 550 billion forints allocated in the budget. The minister noted that various international organizations, including the OECD, have suggested restructuring the 13th-month pension. However, he made it clear that the government would not alter this policy, highlighting past political decisions that eliminated the benefit and reaffirming the administration's stance against such changes. The government has decided to expand its home renovation program, particularly targeting elderly residents in smaller settlements. Minister Gulyás acknowledged that many homes, particularly the so-called 'Kádár cubes,' require urgent modernization, including insulation and energy efficiency improvements. The revised program will now allow pensioners to apply for state-supported renovations, covering up to six million forints. The state will finance half of the renovation costs, while the remaining amount can be supplemented with a low-interest loan. The program does not impose restrictions on renovation types, allowing flexibility in upgrades. A government decree will be published on Thursday regarding the pre-purchase rights of the Budapest Public Utilities Nonprofit Zrt. for the Rákosrendező site. The minister explained that the government had reviewed the legal framework and acknowledged the city's pre-purchase rights. However, Budapest will now bear all financial and environmental responsibilities associated with the property, including the cost of cleaning up the land. The city will also be responsible for any development opportunities the site presents. Minister Gulyás clarified that the government's position remains unchanged: Budapest must fulfill its contractual obligations, and it is now the city's duty to ensure the property is utilized in a manner beneficial to the public. Government spokesperson Eszter Vitályos provided updates on wage increases. The recent adjustments include higher minimum wages and increased salaries for skilled workers. Teachers, in particular, will see a 22.1% salary increase, benefiting over 143,000 educators. Additionally, water utility workers have already received their first increased salaries, with an average 30% raise. The government has also allocated significant funds for education and childcare infrastructure, with billions invested in school and kindergarten renovations. Minister Gulyás responded to questions regarding recent legal changes in Poland, expressing concern over developments affecting judicial independence. He suggested that the European Union's approach to legal standards appeared inconsistent, citing the release of previously withheld funds to Poland despite these concerns. Regarding reports of Ukrainian intelligence operations targeting Hungarian leadership, Minister Gulyás described such actions as regrettable. He emphasized that such incidents negatively impact bilateral relations at a time when cooperation should be prioritized. The minister addressed concerns about foreign influence in Hungary, particularly regarding EU funding for non-governmental organizations. He stated that Brussels has financially supported activist groups engaged in political actions, not only in Hungary but also in neighboring Slovakia and Serbia. The government maintains that stability in Central Europe is in Hungary's best interest and expressed concern over external attempts to influence domestic politics. Minister Gulyás reiterated that Hungary does not seek involvement in international conflicts, particularly regarding the Middle East. He dismissed speculation about Hungary's role in diplomatic negotiations concerning Gaza, stating that the government is aware of its diplomatic weight and remains focused on its national interests. In response to media inquiries, Minister Gulyás reaffirmed that no skyscrapers will be built in Budapest. He referred to previous statements by Minister János Lázár, who had clarified that existing height restrictions remain in place. The construction of the MOL Tower was an exception, as it was approved before the current regulations took effect. Finally, Minister Gulyás confirmed that Prime Minister Viktor Orbán will meet with Alice Weidel, leader of Germany's Alternative for Germany (AfD) party. While acknowledging that the two parties do not agree on all issues, the Hungarian government sees value in maintaining dialogue with major German political forces. However, he dismissed speculation about the AfD joining the Patriotic European alliance in the near future.
