Orbán says will fight to keep and expand new jobs plan, put 50% of banking system in local hands

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Prime Minister Viktor Orban on Tuesday said he would carry through with a workplace protection plan in spite of pressure and outlined the government’s new economic system, which proposes that 50pc of the country’s banking system be in Hungarian hands.

“I will complete this workplace protection plan because this is the kernel of our government’s philosophy,” Mr Orban said after talks with the heads of the Hungarian Chamber of Commerce and Industry (MKIK).

Hungarians must be convinced that it is of greater worth to work than not to work, and this can only be shown if there are really jobs and people can earn more than on welfare, he added.

Mr Orban said he expected much opposition against the plan because of the HUF 300bn it would leave businesses would be the envy of others. If the action plan works, the amount could reach HUF 350bn-500bn in the coming years, he added.

Mr Orban said his government was building a new economic system and economic players were now feeling it. The innovators are first received with surprise, then with incomprehension, then perhaps with interest, and if the innovations work, they are adopted, he added.

He said 50pc of the country’s banking system should be in Hungarian hands, outlining part of the government’s new economic model. Achieving such a goal would be unique in all of Central Europe, he added.

Among the elements of the new economic model, Mr Orban cited a tax system that supports work and families, the replacement of revenue from taxes on labour with taxes on consumption, a restructuring of systems that generate debt, the construction of a state pension system, the restructuring of the social welfare system and the roll of business chambers, a policy of reindustrialisation and a new agriculture system. He also named the conversion of public service companies into non-profits, a policy of openness to the East and a new system of using European Union funds after 2014, replacing the current model which is flawed.

Mr Orban said a commission would be established to set up the new system for the EU monies.

public finances

Hakuna Matata

“He said 50pc of the country’s banking system should be in Hungarian hands”.

In principle I suppose the concept keeping money “in the country” whether it be supermarkets, banks etc. I see all the benefits of this and actively support it myself by spending money on “local products”.

On the other hand, this runs a very fine line against the free market principles that Hungary signed up for when joining the EU. And therefore leaves Hungary very exposed to action from the EU and loss of funds.

The idealised situation would be to persuade Hungarians to be more patriotic. The average Tiszta Magyar I know, still does most of his shopping at Tesco. True patriotism is voting with your wallet. But I don’t see it happening. Therefore Mr Orbán will push ahead with punitive measures against foreign enterprises (hypermarkets, banks, airport operators), and repeatedly get punished by the EU to the detriment of the country (although he will continue to get the votes by being the champion of the people against the evil EU).
Hakuna Matata

“I suppose” should read “I support”
Rolrox

On the 50pc thought… I guess this could also be achieved if most of the foreign banks give up on HU and leave.

Banks though need deposits and I’m wondering, if 50% of the banks are only capitalized with HU money, that’s not going to leave us a lot of working capital.

I wonder how this ties in with other objectives like creating a million jobs, or bolstering SMEs.
Democrat

The man is completely deluded.
“new economic system and economic players were now feeling it”…and voting with their feet
Cnut

“Prime Minister Viktor Orban on Tuesday said he would carry through with a workplace protection plan in spite of pressure and outlined the government’s new economic system, which proposes that 50pc of the country’s banking system be in Hungarian hands.”

Just to clarify, by “Hungarian hands” Orbán either means as a Fidesz-controlled taxpayer-financed bank, or banks owned by good Fidesz tycoons. Controlling private finance will become even more of a tool to stay in power.