Hungary’s prime minister is under pressure because of high inflation.
(Photo: Reuters)
Things are not going well for autocrats in Europe at the moment. Inflation rates are rising rapidly in many places. And the “strong” leaders believe they can prevent it by decree – which usually makes things worse. Prime example of this is the Turkish President Erdogan.
Hungary’s Prime Minister Viktor Orban is also in an uncomfortable position. There will be an election in April. Inflation in Hungary is currently 7.4 percent.
Especially in the countryside, where Orban’s electoral base is located, wages are nowhere near as high as in the city. Rising costs for energy and food are therefore causing particular problems for the population in more peripheral regions. This is all the more uncomfortable for Orban as the opposition has a certain chance of actually winning the elections.
The prime minister reacts to inflation as authoritarian politicians have always reacted: he sets ceilings. Prices for granulated sugar, wheat flour, sunflower oil, pork drumsticks, chicken breasts and milk will be frozen in February at the October 15 level.
Top jobs of the day
Find the best jobs now and
be notified by email.
Orban had previously taken similar measures. There are also upper limits for petrol and mortgage interest rates, which are also rising because the central bank is fighting inflation with higher interest rates.
Orban’s transparent maneuvers carry risks. He runs the risk of alienating “small” businessmen. And the opposition accuses him, with increasing success, of having been in power for 12 years but now having to resort to quick-fix actions. It is above all Orban’s favoritism that is paralyzing the economy. Many domestic sectors are dominated by the prime minister’s protégés – price-dampening competition has been partially eliminated.
More: The man for the big surprises: Peter Marki-Zay challenges Prime Minister Orban