The European Commission’s proposal for minimum wages supports the Hungarian model of tax cuts, family benefits, a stable budget, job creation and wage growth

The European Commission has presented a proposal for an EU directive on minimum wages. The Commission’s proposal reinforces the economic policy direction of the Hungarian model, which is based on tax cuts, family benefits, a stable budget, job creation and continuous wage growth.

The European Commission has presented a proposal for an EU directive on minimum wages.

During the preparation of the proposal for an EU directive on minimum wages, two completely contradictory ideas were encountered. The left-wing has proposed measures that would increase indebtedness, lead to radical tax increases and redundancies, increase unemployment and weaken the economy. Before 2010, Hungarians experienced the serious consequences of this left-wing economic policy, in their personal lives and livelihoods. In those years, almost one million fewer people had jobs and were paid much lower wages than today.

Against this unfair and inhumane economic policy, the European Commission’s proposal supports the practice of the Orbán government, strengthening the Hungarian model of tax cuts, family support, a stable budget, job creation and wage growth.

Countering Klára Dobrev’s lies, which put Ferenc Gyurcsány’s performance to shame, Nicolas Schmit, EU Commissioner for Employment and Social Rights, says that even with the application of the Minimum Wage Directive, people will not receive the same pay in all countries. “This would be totally impossible. It would destroy the economy if tomorrow Bulgaria would adopt the Luxembourgish minimum wage. Well, after tomorrow, there would be no Bulgarian economy any more. So, it is not possible. (…) So, I am very clear also to the citizens: We are not promising the same minimum wage for all Europeans. We are not putting into place one unique minimum wage for all Europe. This would not be realistic. This would be totally impossible. Irresponsible. (…) So this is what this directive is all about; not setting one unique minimum wage for all Europe,” he said.

The Fidesz-KDNP MEPs support the Hungarian government’s efforts to prioritize the continuous increase in wages; the growth of real income in Hungary has been unbroken since 2013, and this trend has continued this year as well. The minimum wage increased from HUF 73,500 in 2010 to HUF 161,000 by 2020, so the Hungarian minimum wage is more than twice as high today as it was in the time of Gyurcsány. In addition to the continuous increase in wages, there are currently almost one million more people working in Hungary than before 2010.