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Minister Gulyás: Hungary to stay out of EU “war loan” for Ukraine

Hungary will not participate in the European Union’s so-called “war loan” intended to finance support for Ukraine, as the government believes the funds will likely never be repaid, Minister Gergely Gulyás said on Tuesday at the final government press briefing of the year.

Minister Gulyás, who heads the Prime Minister’s Office, said that Hungary, along with the Czech Republic and Slovakia, had succeeded in remaining outside the joint EU borrowing scheme, in which 24 member states are participating. He stressed that Hungary continues to pursue a consistent policy of staying out of the war and refusing to finance its prolongation.

According to Minister Gulyás, the planned loan would effectively amount to a non-recoverable financial transfer rather than genuine lending. He pointed out that Ukrainian President Volodymyr Zelensky had recently acknowledged that there was no realistic prospect of repayment, reinforcing the government’s view that Europe would not get this money back.

At the briefing, Minister Gulyás also outlined several domestic policy measures taking effect from January. He confirmed that the doubling of the family tax allowance would be completed, affecting around one million families. Under the changes, families with two children will retain an additional 83,000 forints per month, while those with three children will keep 198,000 forints more. He added that income tax exemptions for mothers under 30, as well as for mothers under 40 with two children, will also enter into force.

Minister Gulyás said the minimum wage would rise to 322,800 forints, while the guaranteed minimum wage would increase to 373,200 forints. He also highlighted the government’s 11-point small and medium-sized enterprise development program, which will leave nearly 190 billion forints with Hungarian businesses, including by raising the VAT exemption threshold to 20 million forints.

On pensions, Minister Gulyás said the average pension would exceed 250,000 forints, while the government would continue paying the 13th-month pension and begin the gradual introduction of a 14th-month pension. He added that teachers’ salaries would rise by 10 percent, lifting the average to 936,000 forints, and that public administration, social and cultural sector workers would receive a further 15 percent pay increase.

Responding to questions, Minister Gulyás reiterated that Europe should prioritize peace efforts over continued military escalation, warning that financing the war carried serious economic and political risks. He said Hungary would continue to defend its sovereignty and financial independence within the European Union, including by rejecting policies that would increase dependence or undermine national decision-making.