“We chose the path of tax cuts,” Prime Minister Orbán declared, distinguishing his administration's vision from what he called the "politics of tax increases" favored by the opposition.
Standing before business leaders at the renewal of a strategic cooperation agreement, the prime minister underscored that the relationship between the government and the Chamber has been a “15-year partnership based on mutual respect and performance.” He credited the Hungarian economy’s resilience and competitiveness to this enduring alliance.
“There is no successful economic policy without a strong entrepreneurial class,” he said. “And the government’s job is to support the successful operation of enterprises.”
Reflecting on the progress since the previous agreement in 2022, Prime Minister Orbán listed a series of achievements: “We introduced personal income tax exemption for those under 25, reduced social contribution taxes, made it easier and cheaper to start a business, and reformed dual vocational training to make skilled labor more accessible to domestic companies.”
More than 40,000 young Hungarians have started businesses under the government’s startup support program, he noted. “We committed, we delivered, and we implemented,” he said. “This is a good feeling.”
Looking ahead, the prime minister warned of a decisive crossroads. “Hungary stands before two paths: One is the path of tax increases. The opposition does not hide it; they want to introduce new taxes: wealth taxes, property taxes, and raise income taxes. They want new EU green taxes,” he said, adding, “We know what this economic policy looks like. It doesn’t believe in work, it believes in redistribution.”
In contrast, he offered what he termed “a national economic policy.” According to this second path, “We don’t make decisions based on ideology. We base them on common sense. We reduced taxes because we believed — and I think we proved — that if the burden on businesses is lower, there will be more jobs, higher wages, stronger exports, and a stronger country.”
Since 2010, Hungary has halved employee contributions, the personal income tax, and the corporate tax. “In my belief, thanks to our tax reform, one million more people are working in Hungary, the average wage has tripled, and the minimum wage has quadrupled,” PM Orbán said
Outlining five foundational principles, the prime minister said: “First, the foundation of the economy is work, not welfare. Only respect for work and performance can move the economy forward. Second, those who work should be supported, not punished. A government that burdens workers governs against the future of the country.”
“Third, the key to competitiveness is tax reduction. The best support is letting people and businesses work without taking away what they earn,” he continued. “Wherever there is a leftist government, economic decline follows sooner rather than later.”
Even left-leaning businesspeople in Hungary can support this policy, he noted. “Our economy is not governed ideologically,” he said. “If there is performance — even on the left — they must not and cannot be excluded. They too are part of the national economy.”
PM Orbán emphasized that economic targets must be met even under global strain. “We won’t complain about war or sanctions. It is what it is. But we must still achieve our goals. This year we will implement the largest family-targeted tax cut in Europe, a HUF 4 trillion program. Whatever happens, we will do it.”
The prime minister also spotlighted joint economic tools like the Széchenyi Card and the Demján Program. “We are giving HUF 320 billion to businesses. The Demján Program mobilizes hundreds of billions more for economic stimulus,” he said. After overwhelming demand, the government increased the program’s budget from HUF 48 billion to HUF 130 billion.
Finally, Prime Minister Orbán raised a major geopolitical warning: Ukraine’s potential EU accession. “Over three years of war, the Hungarian economy has lost more than €20 billion. That’s what we would have today if there had been no war,” he said. “Brussels wants to maintain a one-million-strong Ukrainian army with EU money and rush Ukraine into the EU. This would collapse Europe’s economy — and break Hungary.”
He vowed that Hungary would not bear the costs. “We will not send our EU support to Ukraine. We will not accept the Ukrainian mafia, Ukrainian GMO food, or the collapse of our social safety net. That is what Ukrainian EU membership would bring — even in the short term.”