Prime Minister Viktor Orbán gave a speech in Brussels today after the European Council meeting. In his speech he highlighted that the main topic under discussion was how growth can be fuelled by income from bank taxes, crisis taxes and transaction taxes; in light of this, Hungary’s current measures in economic policy can be seen as justified and in line with international thinking.

The Prime Minister emphasised the importance of cohesion policy, as this is at the heart of EU growth policies, and weakening it would lead to the stifling of growth. He said that Hungary is one of those Member States which needs to cut debt and increase competitiveness at the same time, and so it cannot promote growth policies which entail increased debt. The fact that the Hungarian economy is stable means the Hungary is not dependent on the IMF, and the imminent negotiations are aimed at reducing the country’s borrowing costs.

Prime Minister Orbán also reported that the Council had agreed on a strategy for ensuring the economic stability of Spain and Italy; the markets will give their verdict on this.  The Prime Minister expressed the need for Hungary to decide on its relationship to any future European banking union, and to keep in mind that either opting in or out is possible. He also stated that the Multiannual Financial Framework document will be agreed on by the end of 2012, and that this will determine the amount of money available for cohesion purposes.

(Prime Minister’s Office)