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Biggest danger to economy is hesitation, says Orbán

Prime Minister Viktor Orbán said hesitation is the biggest danger to the economy in the course of the recovery, which is why government measures are directed at getting businesses and households to make investments now, speaking in a weekly interview broadcast on public radio on Friday, state news wire MTI reports.

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"For us, the biggest economic danger is not a decline in consumption, although that is also a serious danger, rather the biggest danger is hesitation," Orbán told Kossuth Rádió.

"If businesses and families hesitate with purchases, investments, and efforts to make a home, then the economy comes to a halt," he said.

"We have to act against this wait-and-see attitude, we have to send a message that businesses shouldnʼt wait, they should go ahead and do. Thatʼs why weʼve given a lot of money...to more than 900 businesses so they can make investments. That means EUR 1bn...more investments...that have saved 150,000-155,000 jobs," he added.

Orbán said the recent decision to reintroduce the preferential 5% VAT rate on home construction, paired with existing home purchase subsidies for families with children, is "not just a good measure, but the next step in the logic of crisis management".