At the annual general meeting of the German-Hungarian Chamber of Industry and Commerce held in Budapest on Thursday, Prime Minister Viktor Orbán said that, contrary to some people’s views, the actions of the Hungarian government on important issues are consistent and predictable.

“The foundations upon which we erected the structure of the Hungarian economy will not change in the years to come”, the Prime Minister said. Among these, Mr. Orbán specifically mentioned that the Hungarian fiscal regime will continue to rely primarily on consumption taxes, the corporation tax will remain at 10 per cent, and no inheritance tax will be introduced. “We shall not penalise families for being successful”, he said.

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The Prime Minister added that sector-specific taxes will remain; “we must keep them in our budget strategy to enable us to contain the deficit and sovereign debt”.

“I do not claim that every single element of this economic policy favours German companies operating in Hungary, but I do say that the economic environment for foreign investors is, on the whole, favourable”, Mr. Orbán said. “In the interest of greater predictability and better planning, we shall announce the 2016 budget on 1 July”, Mr. Orbán added.

The Prime Minister remarked that there is a cultural difference between Hungarians and Germans: the Germans always prefer well-trodden paths to unusual solutions.

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He pointed out that on the European stage the Hungarians are now being perceived as a nation that does everything differently. The era we live in after the 2008 financial crisis compels us to seek out new methods, he said.

Mr. Orbán also said that Brussels cannot decide whether to look upon Hungary as a black sheep or as a success story. Based on the economic figures, we may clearly talk about a success story; but the method by which we have achieved these results has been criticised on a number of scores, the Prime Minister said.

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On the other hand, he continued, no one denies that “we have at least managed to succeed without resorting to German money”, which is seen as something positive. Many people now envisage the future of Europe in terms of drawing on the Germans’ money – one way or another – as part of our joint responsibility, he added.

Hungary is an adherent of a disciplined fiscal policy in order not to be reliant on others’ money, because “sooner or later this will lead to the loss of our dignity, the evaporation of respect for our nation and a degree of subordination; this is something that the Hungarians refuse to accept”, the Prime Minister said.

The press release is available in English in the attached file.

(Prime Minister's Office/MTI)