Mr. Speaker, Honourable Members of Parliament,
At the beginning of each parliamentary session it is our constitutional custom for the Government to report to the legislature on the decisions made between the two sessions. On such occasions we also inform the Honourable House of the Government’s plans for the next session. This is why I have asked to speak now.
Let us begin with the fact that this summer, up in space, the Hungarian flag flew again, after forty-five years. Forty-five years after Bertalan Farkas’s space flight, Tibor Kapu raised Hungary to great heights, elevating our nation to a prominent position in the international field of space research. Congratulations to our astronaut, Tibor Kapu! Congratulations to the dozens of experts unknown to the public, without whom this would not have been possible. I would also like to thank the government leaders for their work, especially Ministerial Commissioner Orsolya Ferencz. She has earned the right to be known from now on as Lady Lieutenant for Space. A total of twenty countries have managed to send at least two astronauts into space. This means that we are now part of an elite club comprising 10 per cent of the world.
Honourable Members of Parliament,
During the summer there were also significant events in European politics. The fact that wars, migration pressures and a new economic and technological revolution are posing challenges for the European Union is not news. Nor is it news that the landscape of international politics and power relations is undergoing rapid changes. For three and a half years a bloody war has been raging on the territory of our eastern neighbour, the Middle East is once again a powder keg, and we must acquaint ourselves with new crisis hotspots. What is news is that the President of the United States is implementing his election promises, point by point. This is news because it is something to which the Western world has grown unaccustomed. It is time to take seriously the fact that the United States has begun a profound transformation of the world trade order, which was previously thought to be unyielding. Another new development is that the countries of the Far East, China and the so-called “Global South” have taken up the gauntlet thrown at their feet. They are demonstrating a level of strength and organisation that we have not seen in decades. India has not yielded to Western economic pressure, has not backed down, but instead has strengthened its cooperation with the Chinese–Russian axis. This will have an impact on Hungarian foreign trade and foreign policy. Another new development is that the European Union is performing well below even our modest expectations, and has completely knocked itself out of the exclusive club of global powers. We can understand why this is so from the speech given to the European Parliament on 10 September by President von der Leyen, in which she outlined the situation of the European Union. The President of the European Commission said that the European Union is at war. She said that wartime measures are needed. We, on the other hand, are calling for a turnaround in competitiveness. Instead of competitiveness, the President said that the most important aim will be financing Ukraine. She announced that she will initiate further institutional centralisation and the appropriation of more powers from Member States. We learned that there will be no shift in the European Union’s migration policy. Nor will there be a review of the green policy that is destabilising European industry. It was announced that they will continue to push forward on Ukraine’s accession process, and that there will be new trade agreements – which a significant number of Member States have already rebelled against.
Honourable House,
Hungary has had to openly state – and on numerous occasions in foreign policy meetings during the autumn will have to repeat – that Hungary has not authorised anyone to wage war on its behalf. Hungary is a member of the European Union and is not at war with anyone – so neither can the European Union be. The pro-war countries may, of course, consider themselves to be at war, but we cannot use the Union for war purposes as long as even one country opposes it. And Hungary does oppose it. Hungary does not want the European Union to be at war, which is why we do not support Ukraine’s membership either. As Mrs. von der Leyen has also announced that she will defend every square centimetre of the Union’s territory, we fear that what will enter the Union together with Ukraine will be the bloody reality of war. I suppose that territory to be defended would include Ukraine if it were accepted into the European Union. Well, that is exactly what we fear! If the European Union admits Ukraine and wants to defend its territory, we will be up to our necks in the war.
Mr. Speaker,
For three and a half years Hungary has been living in the shadow of the war in Ukraine, and it is bearing all the consequences. For three and a half years Hungary has been saying that there is no military solution to the war, only a diplomatic one – and there is a diplomatic solution. American–Russian negotiations began in the summer. Hungary proposes that there should also be European–Russian negotiations, so that we do not have to accept decisions about Europe’s future once again being made without us. It is also clear to me, Honourable House, that Ukraine’s accession would ruin the Hungarian economy, reshape the foundations of European agriculture, and ultimately result in our money ending up in Ukraine. Ukraine’s membership would consume almost all of the EU’s development funds, and Hungary would go from being a recipient of funding to being a contributor. The more than two million votes cast [in the national consultation] on Ukraine’s membership clearly indicate Hungary’s position on this issue. We must, however, reckon with the fact that Brussels, several Member States and several European parties – including Hungarian parties – want to change Hungary’s position and break the resistance of the Hungarian people. Here I would like to make it clear that if Ukraine joins the European Union, it will bankrupt Hungary and Europe as well. We see no reason to support that.
Honourable House,
This summer the Government also had to deal with the issue of our country’s energy security, because the Druzhba oil pipeline was attacked by Ukraine. We called on Ukraine not to jeopardise Hungary’s energy security and to stop attacking the energy supply route to Hungary. Here I would like to emphasise – and the Ukrainians should also acknowledge this – that Hungary is Ukraine’s number one supplier of electricity.
Mr. Speaker,
Everyone in Hungary understands that Russian gas and Russian oil are essential for maintaining low household utility costs. Thanks to the decisions made by the Hungarian government, in 2025 we are able to continue offering Hungarian families the lowest electricity and gas prices in the European Union. Without reductions in household energy bills, every family would annually pay hundreds of thousands of forints more for energy.
Honourable Members of Parliament,
I would also like to inform you that in Brussels this summer we were unable to effect the withdrawal of the Migration Pact. We sought allies, but we still do not have enough support. Therefore the European Commission still wants to force the Migration Pact on Hungary. The Pact is scheduled to come into force in 2027. The Migration Pact is supported by the left-wing opposition parties here in the House and, outside the House, by the Tisza Party. I confirm that the Hungarian government opposes the Migration Pact, does not accept it, and will not implement it. We have been protecting our country and Europe’s borders from illegal migration for ten years. The southern border fence has been in place for ten years. Ten years ago, we declared our war of independence against Brussels’ suicidal migration policy. You may remember that Brussels made threats and many Western capitals stigmatised us; but we Hungarians persevered, closed our southern border, and declared that Hungarian territory may only be entered by those whose entry we permit. We can see what migration has wrought in the West: in many large cities public safety has collapsed, migrant gangs are terrorising people, crime has skyrocketed, and bombings are a frequent occurrence. In contrast, Hungary is an island of peace and security: the number of illegal migrants is zero, and in Hungary crime with a background in migration is unknown.
Honourable House, Mr. Speaker,
As you know, Brussels has imposed financial sanctions on Hungary for its refusal to allow migrants to enter the country. They are blackmailing us, and because we are not giving in, Hungary is being fined one million euros every single day. For Brussels this is a disgrace. The Tisza Party and DK [Democratic Coalition] have announced that they would comply with Brussels’ demands. The Government believes that this would be a suicidal policy. The Government’s position is that migrants should not be allowed in, on the issue of migration there is simply no room for error, and that therefore on this issue there is no room for experimentation. I will say this openly: on this issue I see no possibility of compromise between the opposition and the Government. For as long as Hungary has a national government rather than a Brussels government, the southern fence will remain in place, there will be no Migration Pact, and thus there will be no migrant ghettos and no migrant crime.
Honourable Members of Parliament,
Hungary should pay close attention to the European Union’s economic situation. The current economic policy in Brussels is not only of low quality, but also slow, hesitant, and even incapable of action. It was not always like this, but it is now. The serious question facing us in the coming months is whether the EU can change this. For sixteen years – for twenty years if one includes four years of accession negotiations – I have been involved in shaping European economic policy. I have seen successes and failures, and I have seen the declining quality of governmental work, from Barroso to von der Leyen. I see the differences compared to the United States. I am not talking about differences in personal abilities – those exist, but they are secondary; I am talking about the fact that the current structure of the European Union is incapable of making the economies of its Member States successful. How the European Union should and could be transformed and its economy put back on an upward trajectory is a big topic. Today it is not our task to discuss this. But because of our responsibility to the Hungarian people, we cannot avoid facing up to the truth. I must tell you, my fellow Members, that in the European Union I do not see the capacity for renewal that we need. But I do see the decisions that are being prepared, I see the plans for centralisation, and I see the stubborn, status-driven defence of failed policies. I see the United States and Asia moving further ahead of us. And I see that Hungary has the ability, strength and knowledge to develop more quickly, and for its pace of development to track that of the United States and Asia rather than the European Union.
Honourable Members,
If the EU does not urgently make a U-turn, its history will come to an end. Many people imagine that the EU will one day collapse or fall apart, envisioning some kind of dramatic, rapid scenario. In my opinion, that is not the nature of things in the European Union; it will be more like a slow decline, more like a gradual weakening. The Union is more likely to unravel and disperse. For a long time people in the former territories of the Roman Empire believed that it still existed, when in fact it had long since ceased to be. The same fate awaits us. Decisions will be made somewhere in the Brussels headquarters, and the Member States will not implement them. The headquarters is increasingly unable to assert its will, because it no longer believes in its own success. It is like a faulty GPS: it constantly recalculates its route, but never reaches its destination. Migration, green transition, climate policy, sanctions – so much effort and so little to show for it! Last November, here in Budapest, when we held the rotating presidency of the European Union, we adopted a competitiveness pact with an urgent agenda. In the course of a year, how much of it have we implemented – I mean in Brussels? Perhaps one third! And even that only half-heartedly. Meanwhile the Americans are vigorously restructuring their economy, and the Chinese are racing past our horse and carriage in their high-speed train. Last week there was a speech by Mario Draghi – former president of the European Central Bank and a committed European federalist. He reported on what the EU had achieved since his report was tabled one year ago. I would like to share some excerpts with you. Europe’s growth fundamentals continue to weaken. Financial leeway is limited. The EU’s public debt will increase by 10 percentage points over the next decade, reaching 93 per cent of gross domestic product. The professor says that our growth model has weakened, its vulnerabilities are increasing, and there is no clear path for financing investments. He says that inaction threatens not only our competitiveness, but also our sovereignty. The situation calls for a different path, a new speed, a new scale, and a new intensity. On the important front of artificial intelligence, last year the United States created forty basic models, China fifteen, and the European Union three. The former president of the European Central Bank reminds us that in the automotive industry, which employs thirteen million people, European innovation has fallen behind, models are expensive, and supply chain policy is fragmented. And in his urgent appeal he advises the following: “…we must move beyond broad strategies and backloaded timelines. We need concrete dates and deliverables – and to be held accountable for them.”
Honourable House,
I know the European leaders. I can tell you that this will not happen. But if it does, so much the better. I suggest that we should not wait. Let’s not wait for Brussels’ economic policy – which will be uncertain in its direction, uncertain in its quality and uncertain in its timing. In recent months the Government has decided not to wait any longer, but to launch its own economic programme, following our national path. I would like to inform the Honourable House that on 1 July we launched Europe’s largest tax reduction programme. From 1 July this year we made CSED [infant support benefit] and GYED [childcare allowance] free of income tax. In the case of CSED this means an average of 78,000 forints per month in additional income for a family, while in the case of GYED it means 43,000 forints. Also from 1 July, we increased the family tax allowance by 50 per cent, and we will not wait any longer: from 1 January 2026 we will increase it by another 50 per cent. This means that a family with two children will have an additional 40,000 forints per month, and a family with three children will have an additional 100,000 forints per month. Furthermore, we will wait no longer for Brussels: from 1 October this year mothers with three children will become exempt from personal income tax for life, and from 1 January 2026 mothers with two children will gradually become exempt. This affects one million mothers. By increasing family tax allowances and exempting mothers with two or three children from personal income tax, families with two children could have an additional 1.7 million forints per year, and families with three children could have an additional 2.4 million forints per year in 2026. These measures – which are far from insignificant – will leave an additional 4 trillion forints with families over the next four years. This is what the Government calls a family-friendly tax revolution, which we have committed to and will carry out.
Ladies and Gentlemen,
I would like to inform this House that on 1 September we launched the most ambitious home creation programme since the fall of communism: the fixed 3 per cent loan. “Home Start” provides substantive assistance to anyone who does not own their own home. It incorporates a 10 per cent down payment, a fixed interest rate of 3 per cent that is well below market rates, credit of up to 50 million forints, a term of up to 25 years, no interest rate risk, and no exchange rate risk. The fixed 3 per cent loan opens up the opportunity for tens of thousands of young people to become homeowners instead of tenants. The fixed 3 per cent loan offers young people property, thereby strengthening civic Hungary. This is a programme to expand the Hungarian middle class. Interest has been enormous: in three weeks, more than ten thousand loan applications have been submitted nationwide. We estimate that, in addition to the usual number of new homes built each year, the programme will result in the construction of fifty thousand new homes within five years. This will give a significant boost to the Hungarian economy, will benefit the construction industry, and will strengthen provincial Hungary.
Honourable Members of Parliament,
The Government has decided to extend the profit margin limits until 30 November, and has accepted voluntary price caps from banks, insurance companies and telecommunications companies. We are offering protection against excessive and unjustified price increases. Overall, the price reduction measures reduced inflation by approximately 1.6 percentage points in August this year. In addition, the Government is providing food vouchers worth 30,000 forints to nearly 2.4 million pensioners. The Government has also decided to extend the interest rate freeze for another six months. The banks have appealed to the Constitutional Court against the Government’s decision. I would like to inform the Honourable House that the Government is prepared for this conflict. The interest rate freeze affects 286,000 loan agreements, worth a total of 1.2 trillion forints. We cannot accept the significant increase in loan repayments of approximately 15 per cent that would occur if the interest rate freeze were to be lifted. I would also like to inform the House that at its last meeting the Government decided on the amount of the supplementary pension increase. In line with the Government’s decision, due to higher inflation, pensioners will receive a supplementary pension increase. This means that we will pay an average additional 51,155 forints to pensioners this year: an average 47,200 forints with the November pension, and the remainder with the December pension. The Government remains convinced that pension increases should at least match inflation. Last year they exceeded it, and this year the Government will be spending 112 billion forints on this. This amount is available in the budget.
Honourable Members of Parliament,
Under the leadership of its president, the Brussels Commission has concluded an unfavourable tariff agreement with the United States that does not serve the interests of Europeans, and that has consequences for the Hungarian economy that must be offset. For this reason the Ministry for National Economy has developed an action plan for industrial protection and job protection. The plans, which involve economic actors, include fixed-rate loans to help small and medium-sized enterprises; and we also plan to reduce the burden on employers. We are continuing the workers’ loan programme, which by mid-September had been taken up by some thirty thousand young people, involving a sum of approximately 112 billion forints. The linking of our universities with economic actors has proven to be successful. I can report to this House that our renewed universities are thriving. There are approximately thirty thousand universities in the world, and twelve Hungarian universities are among the top 5 per cent. Professor Krausz, together with three other Nobel Prize-winning professors, has launched a programme to guide young, talented researchers towards world fame. We have launched the Sándor Demján Programme to strengthen small and medium-sized enterprises. Payments reached 100 billion forints in September, we have already evaluated 1,500 applications, and 1,351 winning companies have already begun implementing their developments.
Honourable House,
This is our national economic roadmap. Brussels does not like it. The European Commission has announced that Hungary should introduce progressive taxation, reduce tax allowances, abolish reductions in household energy bills, and end interest rate caps and profit margin caps. Because of this dispute, it is necessary to hold a public debate on burden-sharing in taxation and the flat-rate personal income tax. The Government is therefore announcing a national consultation on burden-sharing in taxation. The questionnaires will be mailed out in early October. I encourage everyone to express their opinion, fill out the questionnaire, and send it back.
Honourable Members of Parliament,
At the beginning of the year we launched a driven hunt against drug dealers. The term “driven hunt” is justified. The police response, in accordance with the Government’s directive, is lawful and uncompromising. Drug dealers are people who make a good living by poisoning – and even killing – other people’s children. Organised crime is behind every drug. There is no room for negotiation with organised crime. The amendment to the Fundamental Law has enshrined at the highest legal level that the production, use, distribution, and promotion of drugs are prohibited in Hungary. Although we have already enacted Europe’s strictest anti-drug laws, some criminal offences and regulatory elements are still missing. In the interests of Hungarian children, I ask the Honourable House to enact these during the autumn session. I can report to the Honourable House that since the launch of the police operation in March, we have seized more than one tonne of drugs from the black market, 6,581 criminal proceedings have been initiated, and we have seized assets linked to drug trafficking worth more than 900 million forints – including several hundred cars. More than seven thousand intensive checks and raids have been carried out across the country, with more than twenty-two thousand members of the criminal investigation service participating in Operation DELTA. I would like to take this opportunity to thank them for their work. We have no wish to – and will not – tolerate drugs and organised crime in the future. In Hungary there is zero tolerance for drugs. Thank you! Thank you, Minister of the Interior!
Honourable Members of Parliament, Mr. Speaker,
Finally, let us say a few words about violence, and about verbal and online aggression. Today there are opposition politicians who carry guns to public political gatherings. I ask you to stay within the bounds of common sense. We do not live in a jungle, like savages. I ask Members of the House for moderation, civility, calmness and patience.
I wish you all productive work and high-quality, forward-looking debates, and I again ask for your support for the work of the Government.
Thank you for your kind attention.