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Varga: 2020 Budget Helps Wage Hikes AM JULY 15, 2019 EDITORS: [email protected] ¬ WWW.HUNGARYMATTERS.HU MORNING ISSUE PHOTO OF THE DAY UPCOMING EVENTS EU foreign ministers meet in Brussels EP holds plenary session Presser on Bálványos Free University in Băile Tușnad, Romania MTI/Tamás Kovács MTI/Tamás Gréta Gurisatti scores Hungary’s 64th goal against South Korea at the Gwangju FINA World Championships, in a match won 64:0 TOP STORY VARGA: 2020 BUDGET HELPS WAGE HIKES Next year’s budget, which parliament accepted on Friday, facilitates wage and investment growth and reduces taxes and the state deficit, Finance Minister Mihály Varga told public Kossuth radio on Sunday. The government’s economy protection action plan opens new possibilities for entrepreneurs by reducing tax burdens, Varga said in an interview to Kossuth radio’s Vasárnapi Újság. The aim is to achieve a growing budget surplus, Varga noted. State debt is expected to fall to 67% of GDP next year, from 83% in 2010, he said. State deficit is expected around 1% of GDP in the same period, he said. Hungary’s soaring 5.3% growth in the first quarter of 2019 has convinced the European Commission, he said: on Wednesday, the body amended its forecast of Hungary’s growth in 2019 to 4.4%. Several sectors will be faring better under the new budget, Varga said. The 2020 budget will see a VAT cut on commercial accommodations, from 18% to 5%. The government has allocated 2,228 billion forints (EUR 683.5m) to family support and will exempt mothers with four or more children from paying personal income tax. The money allocated for home subsidies will reach 300 billion in 2020, double the 2010 amount, he said. Healthcare and education funding will reach 2,000 billion forints each, Varga said. Hungary Matters is an English-language newsletter produced and distributed by the Media Service Support and Asset Management Fund (MTVA) with content provided by Duna Media Service Provider exercises copyright over all content. No part of this publication may be copied, reproduced, redistributed or transmitted without prior written permission from the publisher, with the exception of copies made by individuals for private use, educational purposes or scholarly research, provided that such transmissions do not exceed the extent justified by the purpose and are not aimed at financial gain, even indirectly, and the source name are indicated at all times. All rights reserved. Enquiries should be made to the English Help Desk at +361 441 9340 For MTI’s real time coverage please visit http://english.mti.hu, http://econews.hu JulY 15, 2019 MORNING ISSUE AM based on mandatory quotas,” freedom of science and research SZIJJÁRTÓ: HUNGARY he said, adding that the most is still guaranteed in Hungary, the WANTS TO TAKE HELP TO important thing to Hungary is to government supports science THOSE IN NEED RATHER defend the external borders of the and will increase the funding of THAN IMPORTING Schengen zone. research but it has the right to set PROBLEMS TO EUROPE The paper also asked the the priorities. minister about the relationship Instead of bringing problems to between Fidesz and the European ORBÁN HOLDS TALKS Europe, the Hungarian government People’s Party. Szijjártó noted that WITH CHINESE FOREIGN wants to take help to where it is the Hungarian governing party, MINISTER needed, Foreign Minister Péter which won 53% of the votes in Szijjártó said in an interview with the recent European parliamentary Prime Minister Viktor Orbán held talks Munich-based daily Süddeutsche election, is the most successful with Chinese Foreign Minister Wang Zeitung. member of the EPP. The EPP has Yi in his office in Budapest, praising The minister said foreign “shifted too far in a liberal, left- their two countries’ friendship and politicians and the international wing direction” in its cooperation partnership, the PM’s press chief press were “unfair” to Hungary with the Social Democrats, he said. The prime minister noted that on the matter. “In the migration said. “For us, the most important Hungary and China mark the 70th debate nobody has ever talked thing is to represent the will of the anniversary of the establishment of about the fact that we have Hungarian people. It is solely up to their diplomatic relations this year, spent 34 million euros so far to us whether we will leave the EPP. which he said was an important event help Middle Eastern and African We will stay as long as it is within for Hungary in terms of its history. Christians stay in their own the EPP that we can best represent Seventy years ago Hungarians would countries. We build schools, Hungary’s interests,” Szijjártó said. never have thought how important renovate churches and demolished Bavaria is not just a strategic this relationship would turn out to homes, finance hospitals. We do ally, but a real friend to Hungary, be, Orbán said. He attributed the this to keep those living there Szijjártó said. This friendship is endurance of the two countries’ safe at home. It is a human right deeply rooted in the two countries’ relationship to China’s “fantastic that nobody should be forced to shared histories, he added. The progress” in recent decades. He said migrate, that people should be minister also talked about the the Hungarian government was able to live in their country safely, candidacy of German Defence working to make sure that Hungary without being under threat,” the Minister Ursula von der Leyen for and China’s friendship lasts as long minister said. the presidency of the European as possible. Wang also underlined Answering a question on the Commission. He said von der the importance of the diplomatic government’s ad campaign, Leyen is a good candidate who anniversary, noting that China Szijjártó said Hungarians had to be has always treated Hungary fairly considered Hungary a friendly country informed about what is happening and respectfully, and all 13 MEPs and a reliable partner. China wants to in Brussels. “It is unacceptable to of Fidesz will support her election. develop its relationship with Hungary us that illegal migrants should Answering a question concerning on the basis of mutual respect and come to Europe. It is unacceptable the Hungarian Academy of understanding, Bertalan Havasi that they should be distributed Sciences (MTA), Szijjártó said the quoted the minister as saying. Hungary Matters is an English-language newsletter produced and distributed by the Media Service Support and Asset Management Fund (MTVA) with content provided by Duna Media Service Provider exercises copyright over all content. No part of this publication may be copied, reproduced, redistributed or transmitted without prior written permission from the publisher, with the exception of copies made by individuals for private use, educational purposes or scholarly research, provided that such transmissions do not exceed the extent justified by the purpose and are not aimed at financial gain, even indirectly, and the source name are indicated at all times. All rights reserved. Enquiries should be made to the English Help Desk at +361 441 9340 2 For MTI’s real time coverage please visit http://english.mti.hu, http://econews.hu JulY 15, 2019 MORNING ISSUE AM will simplify the contributions to be voices in Hungarian politics. It has GOVT OFFICIAL: 2020 paid after employees, among other had better results at the European BUDGET TO BRING HUF measures. parliamentary elections than “some 80 BN TAX REDUCTIONS - parties with groups in parliament”, PAPER MI HAZÁNK HOLDS FIRST she said. The party’s only standard CONGRESS is the good of the nation, Dúró said. Next year’s budget, which parliament That will determine their action “in the accepted on Friday, will bring a total The radical nationalist Mi Hazánk face of leftist demagoguery and Fidesz of 80 billion forints (EUR 245.5m) in (Our Homeland) party held its first hypocrisy alike”, she said. The party tax reductions, a state secretary of the congress with some 180 participants would never cooperate with (leftist) finance ministry told the daily Magyar in southern Hungarian Ásotthalom Democratic Coalition or the Socialists, Nemzet. In an interview published in on Saturday. In his address, party “or any of their vassals”, she said. the daily on Saturday, András Tállai leader László Toroczkai, the mayor of said taxpayers’ administrative burdens Ásotthalom, said the people “have JAPANESE TORAY TO will also be significantly reduced in lost their faith” and have to see that BUILD HUF 127 BN 2020. The ruling parties were again Mi Hazánk party members are present BATTERY SEPARATOR FILM “basically left to their own devices” to everywhere and work as a movement PLANT IN N HUNGARY create a tax system supporting families to oppose “all those posing a danger to and economic growth, Tállai added. the Hungarian people, be it migrants Japanese-owned Toray Industries “The country’s economic indicators or gypsy criminals”. Mi Hazánk has an Hungary will build a 127 billion forint are soaring, quality of life is rising, enormous responsibility, Toroczkai (EUR 380m) plant to make battery entrepreneurship is easier and easier. said. If members “give up now and separator film for lithium batteries in It is hard to grasp why the left-liberal stand aside”, a new “Gyurcsány Nyergesújfalu, in northern Hungary, opposition insists on mulling tax hikes government” will rise to power in 2022, the foreign affairs and trade minister and austerity,” he added. with (nationalist) Jobbik delivering the announced at the site on Friday. As long as the ruling Fidesz- “votes of the radical masses”, he said. The government is supporting the Christian Democrat majority makes The party has to persevere to represent investment, which will create 188 the decisions on taxes, there will be the “nationalist side” should Fidesz, jobs, with a 4.7 billion forint grant, no tax hikes or property taxes, and “which now still rakes in votes with Péter Szijjártó said.
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