Gulyás: 'The 13th-month pension is part of Hungary's system and will remain so'

Budapest Times

07-02-2025

At the Government Info, Minister Gergely Gulyás addressed several key issues, including pension policy, housing programs, and the latest developments regarding the Rákosrendező land purchase. He also responded to questions about external political pressures and Hungary's diplomatic stance.
Minister Gulyás reiterated that the government remains dedicated to maintaining the purchasing power of pensions. He emphasized that the 13th-month pension, which was reinstated by the government, will continue despite external criticism. The payment is scheduled for February 12, with bank transfers processed first, followed by postal deliveries. The initiative represents a significant financial commitment, with 550 billion forints allocated in the budget.
The minister noted that various international organizations, including the OECD, have suggested restructuring the 13th-month pension. However, he made it clear that the government would not alter this policy, highlighting past political decisions that eliminated the benefit and reaffirming the administration's stance against such changes.
The government has decided to expand its home renovation program, particularly targeting elderly residents in smaller settlements. Minister Gulyás acknowledged that many homes, particularly the so-called 'Kádár cubes,' require urgent modernization, including insulation and energy efficiency improvements. The revised program will now allow pensioners to apply for state-supported renovations, covering up to six million forints. The state will finance half of the renovation costs, while the remaining amount can be supplemented with a low-interest loan. The program does not impose restrictions on renovation types, allowing flexibility in upgrades.
A government decree will be published on Thursday regarding the pre-purchase rights of the Budapest Public Utilities Nonprofit Zrt. for the Rákosrendező site. The minister explained that the government had reviewed the legal framework and acknowledged the city's pre-purchase rights. However, Budapest will now bear all financial and environmental responsibilities associated with the property, including the cost of cleaning up the land. The city will also be responsible for any development opportunities the site presents.
Minister Gulyás clarified that the government's position remains unchanged: Budapest must fulfill its contractual obligations, and it is now the city's duty to ensure the property is utilized in a manner beneficial to the public.
Government spokesperson Eszter Vitályos provided updates on wage increases. The recent adjustments include higher minimum wages and increased salaries for skilled workers. Teachers, in particular, will see a 22.1% salary increase, benefiting over 143,000 educators. Additionally, water utility workers have already received their first increased salaries, with an average 30% raise. The government has also allocated significant funds for education and childcare infrastructure, with billions invested in school and kindergarten renovations.
Minister Gulyás responded to questions regarding recent legal changes in Poland, expressing concern over developments affecting judicial independence. He suggested that the European Union's approach to legal standards appeared inconsistent, citing the release of previously withheld funds to Poland despite these concerns.
Regarding reports of Ukrainian intelligence operations targeting Hungarian leadership, Minister Gulyás described such actions as regrettable. He emphasized that such incidents negatively impact bilateral relations at a time when cooperation should be prioritized.
The minister addressed concerns about foreign influence in Hungary, particularly regarding EU funding for non-governmental organizations. He stated that Brussels has financially supported activist groups engaged in political actions, not only in Hungary but also in neighboring Slovakia and Serbia. The government maintains that stability in Central Europe is in Hungary's best interest and expressed concern over external attempts to influence domestic politics.
Minister Gulyás reiterated that Hungary does not seek involvement in international conflicts, particularly regarding the Middle East. He dismissed speculation about Hungary's role in diplomatic negotiations concerning Gaza, stating that the government is aware of its diplomatic weight and remains focused on its national interests.
In response to media inquiries, Minister Gulyás reaffirmed that no skyscrapers will be built in Budapest. He referred to previous statements by Minister János Lázár, who had clarified that existing height restrictions remain in place. The construction of the MOL Tower was an exception, as it was approved before the current regulations took effect.
Finally, Minister Gulyás confirmed that Prime Minister Viktor Orbán will meet with Alice Weidel, leader of Germany's Alternative for Germany (AfD) party. While acknowledging that the two parties do not agree on all issues, the Hungarian government sees value in maintaining dialogue with major German political forces. However, he dismissed speculation about the AfD joining the Patriotic European alliance in the near future.