The head of the Hungarian central bank warns of a crisis. He criticizes the Orban government

Governor of the National Bank of Hungary (MNB) György Matolcsi spoke on Monday before the parliamentary committee on the economy to report on the central bank’s performance in 2021. However, his speech turned into an indictment of the economic policies of the government of Viktor Orban. Matolci warned that Hungary is at the forefront of European countries threatened by the crisis.

– We have to come to terms with the fact that our financial and macroeconomic performance is one of the first or second worst in the European Union – said the President of the MNP, emphasizing that Hungary is one of the weakest countries in the Community in terms of competitiveness.

Central Bank President criticizes Orban’s government

The head of the Ministry of National Security warned that Hungary is facing stagnation and stagflation. In his opinion, it is necessary to change the economic policy of the government. During his speech, Matolci spared no criticism of the Orbán cabinet. He stressed that economic problems are largely the result of wrong decisions taken by the government. He described the government’s anti-crisis strategy as “wrong”. According to the head of the Hungarian central bank, restrictions on food and fuel prices should be lifted immediately. Matolci argued that these restrictions prompted retailers to raise prices for other products.

Interestingly, Matolci was an important Fidesz politician for many years (before becoming a member of the party, he was its economic adviser). In 2013, he took over as President of the Ministry of National Security from the position of Minister of Economy in the Orban government (he previously held this position in 2000-2002, during Orban’s first government). According to the website telex.hu, criticism of the government by the head of the Ministry of National Security is the result, among other things, of the conflict between Matolci - Finance Minister Mihai Varga - Economic Development Minister Marton Nagy.

Hungary with the highest inflation in the EU?

In his speech, Matolci predicted that next year’s inflation could be the highest among EU member states, at around 15-18 percent. According to the latest data from the Hungarian Central Statistical Office (KSH), inflation in October was 21.1 percent. The president of the Ministry of National Security allegedly said that high inflation is not the result of the war and the sanctions imposed in connection with it, since Hungary has been raising prices since last summer due to rising energy prices.