Briefing notesEconomy & Policy

Economy Protection Action Plan unveiled in Hungary

Prime Minister Viktor Orbán has stressed that protecting Hungarian economic achievements will be the primary task of 2020.

During an interview on Kossuth radio last week, the prime minister said that it would be an uphill struggle to sustain economic growth with the eurozone in turmoil. He added that the government’s economic action plan for the first quarter of 2020 “will be based on tax cuts.”

The prime minister said that if the European economic slowdown continues, Hungary will need to take new measures to counteract this in order to maintain strong economic performance.

PM Orbán said the clouds are gathering in the skies of Europe, and Hungary needs to launch an economic action plan or plans in the coming months. The central bank and the finance ministry could be involved in developing the plans. 

The prime minister also emphasized that Hungarian economic growth should be kept 2 percentage points above the EU average.

According to the prime minister, the government has three important tasks in the next period:

  1. The implementation of the family protection action plan, possibly adding new elements.
  2. Maintaining economic growth – the number of jobs and wage increases depends on this. 
  3. Strengthening the Hungarian Village Program – its financial framework and forms – to support Hungarian villages and expand its agricultural economy and to help rural people in need.

In the summer, the prime minister said that if the current assessment were to be confirmed, a second economic action plan could be launched sometime next spring and a third in autumn 2020.

The prime minister also said that the answer to the question as to whether Hungary and Central Europe are able to stand on their own two feet and outperform richer countries will also come to light next year.

PM Orbán added that Hungary’s economic successes of recent years had been due to tax cuts, helping the country boost production and its competitiveness, while wages also grew exponentially.

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