Prime Minister Viktor Orbán on Friday called student movements "a great thing", but stressed that perspective must be maintained.

Speaking on Kossuth Rádio's 180 minutes program, the Prime Minister said he hoped students were aware of the degree to which they shaped recent events as well as the point at which they started to be manipulated. He said the Government had presented its plan for higher education, but due to the concerns expressed by students, the cabinet has decided to simplify the system.

He said student movements, in which he also participated in 1982, never start or end on somebody's order, adding that politics are always present in such movements, because the opposition tries to use them against the Government.

Among the goals of higher education reform, the Hungarian Prime Minister highlighted the importance of enhancing the system’s quality to help students find employment after graduation, adding that dropout rates should be reduced, while emphasising that Hungary cannot allow the luxury of financing the education of graduates, who then start working elsewhere in Europe.

Talking about the 5.4% rise in the minimum wage next year, the Prime Minister highlighted that since the Central Bank forecasts a lower, 3.5% rate of inflation for 2013, the increase in salaries will be much more significant. Touching upon the reduction of utility costs, he stressed that the Hungarian Government is now strong enough to no longer tolerate the fact that Hungary has among the highest energy prices in Europe. Prime Minister Orbán also noted that by purchasing E.ON’s gas business in Hungary, the Government has an instrument at its disposal to influence prices.

Most of Hungary's economic indicators are improving, but the country still needs economic growth, he noted, adding that higher interest rates were keeping indebted SMEs from receiving credit.

The Prime Minister expressed his hope that interest rate reductions can be achieved through good economic policy, noting that recent central bank rate cuts point in that direction and there is a chance that businesses will have better access to credit with an acceptable interest rate next year.

(Prime Minister's Office)