The epidemic crisis took its toll on the Hungarian economy, but there is a good chance that it might be able to produce one of Europe’s most stable results, Gergely Gulyás, the Minister heading the Prime Minister’s Office said at the Thursday online ‘Governmentinfo’ press conference.
We will be able to offset this year’s possible recession with a significant growth next year, he added.
Mr Gulyás said we have managed to take considerable steps also in the area of protecting jobs. With the measures implemented so far and those planned for the future, the government is playing a role in the protection of 1,144,125 Hungarian jobs, including both labour market and training support.
The Minister said 175,000 registered job-seekers have received monetary support so far, the various job support schemes have protected 302,000 jobs, as many as 62,000 persons have enrolled for basic IT training, 12,000 persons have applied for credit as part of the student loan plus programme, a variety of investment incentive schemes will support the creation of 73,800 new jobs, and at present there are 88,000 persons employed in public works schemes, a number that could be raised all the way to 200,000.
It is good news that at this time there are only 7,000 new public works scheme participants, he added.
The Minister said Parliament has also decided on tax reductions. From 1 July the social contribution tax will decrease from 17.5 per cent to 15.5 per cent – as a result, the simplified public burden contribution will also decrease to 15.5 per cent – and the tax of small businesses will be reduced from 12 per cent to 11 per cent.
In consequence of the government’s decision, businesses can set aside even the entirety of their profits without the payment of corporation tax for investments to be implemented in Hungary within 4 years, provided that such profits do not exceed HUF 10 billion, Mr Gulyás said.
The cabinet further decided to organise a national consultation about the coronavirus and the restarting of the economy. National unity constitutes the basis of a successful containment effort, and it is therefore important for the government to acquaint itself with the opinions of members of the public, the Minister observed.
The government adopted a decision on a culture subsidisation package worth HUF 5.1 billion in consultation with the Hungarian Academy of Arts, the purpose of which is to restore the situation in Hungarian culture to what it was before the pandemic and to minimise the losses sustained by those working in culture, Mr Gulyás highlighted.
The Hungarian nation is the only nation which managed to perform the feat of surviving in the wake of and despite a successful and fully accomplished attempted murder, the Minister heading the Prime Minister’s Office stated.
Mr Gulyás recalled that Hungary was compelled to sign the Trianon peace dictate 100 years ago, and in consequence of this the country lost two thirds of its territory and every third Hungarian found themselves beyond the borders “without having moved”.
“We bow our heads before the Hungarian victims of the past one hundred years, and remember those who were executed, imprisoned or driven to distress and misery due to their Hungarian identity. We remember those who in the past one hundred years have been compelled to sacrifice their lives due to loyalty to their country as in the past one hundred years loyalty to the country has kept the country alive, not those who have been loyal to it,” the Minister said.
Mr Gulyás said on Wednesday the government decided to support the establishment of a museum of Hungarian freedom at the Citadella in Buda to mark the 100th anniversary.
He highlighted it is to be hoped that this will not only make it possible to refurbish the building which has been left abandoned for a long time, and will not only mean the establishment of a worthy museum commemorating Hungarian freedom fights and survival, but will also mark the beginning of the complete refurbishment of Gellért Hill. The relevant government decision will be published in Magyar Közlöny [Hungarian Gazette] shortly.
Government Commissioner Gergely Fodor will be responsible for the implementation of the programme, the Minister added.
Mr Gulyás said for ten years the national day of mourning has also been the Day of National Cohesion; the acquisition of dual citizenship was made possible ten years ago, and since then almost 1,100,000 Hungarians have availed themselves of this opportunity. “90 years after Trianon this made it possible to repeatedly forge a bond under public law between Hungarians and Hungarians, the Hungarian State and Hungarian nationals,” he pointed out.
He said they are joining Government Commissioner Mária Schmidt’s appeal, and are asking everyone to put up a picture they hold dear of an area in the world where Hungarians live.
Hungary fought successfully and effectively in the first phase of the fight against the coronavirus epidemic, Mr Gulyás said.
He added that Hungary contained the epidemic more effectively than any state in Western Europe, and so they would like to thank everyone who took part in the fight against the virus as well as members of the public who complied with the disease control regulations.
Mr Gulyás said the government had submitted to Parliament the bill on the maintenance of a state of health care preparedness and the termination of the state of danger.
The state of danger declared due to the coronavirus epidemic could come to an end within a day or two after 16 June. Following this, theatres, museums, cinemas and baths will be allowed to reopen.
On Wednesday, the government decided to uphold the current restrictions on the organisation of events. Drive-in concerts have been authorised with immediate effect on a general basis, he said.
Mr Gulyás pointed out that the shopping hours reserved for the most at-risk elderly would remain in effect. The visiting ban in hospitals, elderly care homes and social institutions will remain in force until the end of the state of danger, following which the Chief Medical Officer will make a decision on this matter.
The maintenance of a state of disease control preparedness is justified, the Operational Group will remain in session, the current system regarding the overseeing of hospitals will be adjusted to the status of the epidemic, and the Chief Medical Officer will continue to have powers to take measures in the interest of preventing another peak of the epidemic.
The Minister highlighted – as the most important change – that rule by decree will come to an end with the cessation of the special legal order. Only Parliament will again have the authority to pass laws, and Parliament will also be required to decide which decrees adopted by the government in recent months it wishes to uphold, he said.
Mr Gulyás also said they sincerely hope that “the Left that attacked the containment effort during the epidemic both in Hungary and abroad will at least support the maintenance of a state of disease control preparedness”. If we were unable to start the fight against the epidemic with national unity, it would be good to at least bring it to a conclusion with national unity, he underlined.
The politician said the government had spent HUF 590 billion on the fight against the epidemic. This was necessary and proportionate, he added.
The Minister highlighted that the health care system has been prepared for mass incidences despite the fact that at this point this is not a realistic threat, given that we have managed to contain the epidemic. The supplies we have managed to procure so far will also be available during a possible second wave, he pointed out.
Mr Gulyás asked everyone to continue to comply with the protective measures in effect, including wearing face masks and keeping a safe distance of one and a half metres.
Regarding the government’s economic decisions, he said the top priority is to create new jobs to replace those that have been lost, and to preserve as many jobs as possible.
It is also important to maintain solvency in general; this is why the government decided to introduce a credit debt moratorium for this year, he added.
Mr Gulyás pointed out that according to the latest data, almost two thirds – 65 per cent – of retail customers had availed themselves of this option, amounting to 57 per cent of the total credit debt portfolio. Four fifths of corporate customers have availed themselves of the moratorium, representing 54 per cent of the corporate credit debt portfolio.
This clearly shows that the credit debt moratorium is a great help for less well-off debtors and small businesses, the Minister underlined.
Due to the expected re-intensification of the pressure of migration, ever more soldiers and police officers are serving at the Hungarian border, with the necessary technical equipment at their disposal, Mr Gulyás said.
In answer to a question, he pointed out that the majority of migration projections for the coming months were negative. He indicated that during the Whitsun weekend, as many as 430 migrants had been detained, and there had been no border section where illegal immigrants had not attempted to cross the border.
He took the view that the economic difficulties caused by the epidemic could induce many to set out for Europe in the hope of finding a living. He drew attention to the fact that after the epidemic Europe must avoid repeatedly falling victim to mass immigration. In his view, Europe can take action against this if it makes it clear that it supports all its Member States in the protection of the external borders.
With reference to the losses sustained by fruit growers due to spring frost damage, he said in his view the HUF 19 billion available in this year’s damage alleviation fund should provide sufficient compensation. “We sincerely hope and as far as we know” the Ministry of Agriculture has the necessary resources both for developments and damage compensation, he said.
Regarding the prospects of the tourism industry in the summer, Mr Gulyás said members of the public should visit domestic destinations, while in the context of travels abroad, he advised people to keep track of the rules relating to borders.
Hungary favours the opening of borders in relation to all countries where the level of infection is not significantly different from that of Hungary, he stated, adding that they are seeking to provide up-to-date information about where people can travel and under what conditions.
In answer to the question as to whether the government sees a need for the tightening of the Penal Code due to an increase in the number of murders, he said annual statistics do not support an increase in the number of murders in Hungary. He said the government has always favoured a very stringent penal policy, and in this they also had disputes with EU agencies, including on the issue of the actual life sentence. The detection rate of murders in Hungary is one of the highest in Europe, almost all murderers are apprehended, he said.
Regarding the pay of health care workers, he recalled that during the term of this government so far the pay of nurses has increased by 72 per cent, and while this still falls short of the Western European average, the salaries of nursing staff had not increased at such a rate during any previous government. Despite the economic difficulties, the pledged 20 per cent pay rise will be implemented, he stated, indicating that the HUF 500,000 pre-tax bonus will also be a significant extra help for health care workers.
The goal of the government is to further increase the salaries of physicians, and at the end of the epidemic, they will be happy to conduct consultations about this. They would like to come to an agreement also with doctors about a pay rise that offers them genuine prospects, he said.
In response to news reports suggesting that there is no air-conditioning in the operating theatres of some health care institutions, Mr Gulyás pointed out that operating theatres used in the summer must be air-conditioned. He added that if the necessary conditions are not yet available in one institution or another, the government will provide the required financial resources.
He said “it testifies to the inaptitude of the head of an institution” if operations are performed in operating theatres in the summer without air-conditioning; in his view, “this is not acceptable”. Both the funding made available for health care and the economy allow the installation of air-conditioning in all operating theatres, “this is a question of suitability as head of an institution,” the Minister heading the Prime Minister’s Office pointed out.
The government is opening a preferential credit line worth two hundred billion for local governments, Gergely Gulyás, the Minister heading the Prime Minister’s Office announced at his online press conference held on Thursday.
The Minister added that in order to make the fight against the epidemic successful, we also need the cooperation of local governments. In next year’s budget, there will be 18 per cent more funding for local governments.
He said it is to be hoped that the compulsory home quarantine for Hungarian nationals returning from Croatia could be abolished within the shortest possible time. However, Croatia has taken a major risk by having opened its borders to Italy. Austria, the Czech Republic and Slovakia have likewise not opened their borders in relation to Croatia, he observed.
He said so far 11,140 businesses have received wage support requested in respect to 145,000 workers. Government offices have already awarded grants worth HUF 163,000 per person on average in relation to 104,000 workers. According to his information, the job creation wage support programme worth HUF 80 billion serving the employment of 70,000 job-seekers helps school-leavers with finding jobs. In addition to the wage support paid for a period of six months, employers are required to employ these workers for another 3 months; as a result, employment for 9 months is guaranteed.
The Minister further informed members of the press and the public that up to the end of the year the government will abolish the tax replenishment obligation of businesses, and this will also apply to the local trade tax. As further measures, individual entrepreneurs will be able to write off the amount of the development reserve up to the full amount of their profits instead of 50 per cent up to now, next year only the transportation of hazardous goods will have to be reported in the Electronic Public Road Trade Control System, and in the case of the use of health care services by ineligible persons, they will have 6 months – instead of 3 months at present – to settle their social security debt.
He said in tourism tax benefits will remain in effect until the end of the year, and in the case of another wave of the epidemic, these could be reintroduced in relation to an even wider segment of actors.
Regarding Slovak Prime Minister Igor Matovic’s Trianon commemoration held on 3 June in Pozsony (Bratislava) Castle, Mr Gulyás highlighted that according to the position of the Hungarian government, those forming part of the national minorities living here are good citizens of Hungary if they remain good Serbs, Slovaks or Romanians as by doing so they enrich the Hungarian nation. What we saw now is that the new Slovak government also shares this view, and this is a welcome development, he said.
Concerning the recommendations of the Council of Europe’s Group of States against Corruption (GRECO), he said the government has fulfilled several elements of these recommendations, including 50 per cent of the recommendations related to judges, while on average GRECO Member States have adopted just 36 per cent of recommendations. There are, however, proposals which should not be implemented, including the restriction of the immunity of judges.
He added that during its previous two terms the government introduced stringent measures to curb corruption, punitive sanctions were increased, and public procurement regulations were significantly tightened. At the same time, the responsible management of state assets is a well-established practice today, in the wake of which state assets increased by some HUF 7,000 billion between 2010 and 2018.
Regarding the double murder committed at Deák tér on 22 May, the Minister cited Prime Minister Viktor Orbán who “made it clear in 2008 that crime has no ethnicity, there is no Roma crime, there are Roma criminals”. It is the duty of the state to take action against anyone who commits a crime, he stated.
He also said – based on the experiences of the epidemic – they will review the rules relating to inventory management and funding in health care in order to put an end to funding problems and to stop the accumulation of year-end hospital debts.
In answer to another question, he stressed that – in accordance with its earlier promise – the government is ready to make a contribution of six billion forints to the refurbishment of the Chain Bridge.