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Minister Gulyás: The government will bail out the capital in financial distress

Minister Gergely Gulyás outlined the government’s key decisions at today’s government info briefing, focusing on economic relief, urban finances, social policy, and Hungary’s stance on international peace efforts.

The minister began by addressing the capital’s financial crisis. He said it was regrettable that after six years of left-wing governance, the Mayor of Budapest is now speaking openly about bankruptcy. The government, he added, is willing to assist but awaits clarity: “The Budapest assembly must officially declare insolvency.” Without this, no funds will be transferred. “Budapest cannot become ungovernable,” he stressed.

Turning to pensions, Minister Gulyás announced that the first installment of the 14th-month pension will be paid at the same time as the 13th in February. He added that next year’s pension increase will be 3.6 percent, and inflation may remain below this level, meaning pensioners could benefit in real terms. Parliament is expected to vote on the relevant legislation next week.

On housing, the minister revealed that 8,500 loan applications have been approved under the Home Start program so far. Starting next year, an additional HUF 1 million in mortgage support will be offered to public sector workers, and the scheme will be expanded to include suburban properties. “The program’s focus is clearly shifting toward larger cities,” he said, noting that ten out of every hundred housing inquiries now concern Home Start. Government spokesperson Eszter Vitályos added that over 33,000 people have applied for the worker loan scheme, with HUF 132.5 billion disbursed to date.

On energy, Minister Gulyás announced that the government is preparing a new initiative to support energy storage systems for households and businesses. The program would help store green energy at residential, SME, and industrial levels.

Minister Gulyás also addressed international developments. He reaffirmed Hungary’s support for the American peace initiative in Ukraine. “Europe suffers most from the war, and European actions today serve only to prolong it,” he said. Hungary will continue providing humanitarian aid, but refuses to finance the war effort.

Commenting on regional diplomacy, Minister Gulyás confirmed that the prime minister is currently in Serbia for talks. As part of Hungary’s support, MOL will more than double its oil deliveries to Serbia, helping ease supply issues caused by American sanctions on a Serbian-linked company.

The minister also issued a firm warning on drug policy: “Whoever deals in drugs kills people.” He said the government will continue cracking down on both trafficking and the promotion of drug use, reiterating that addiction often begins with so-called “soft” substances.

Finally, Minister Gulyás sharply criticized the Tisza Party’s leaked austerity plans, which include a proposed pet tax. He said their candidates have close ties to the left and are deliberately kept out of public view due to perceived incompetence—even according to their own leader. “They aren’t allowed to speak because they can’t string together two coherent sentences,” he remarked.