In his State of the Nation address, Viktor Orbán presented a mix of economic incentives, socio-political constraints and geopolitical statements designed to shape Hungary’s future direction.
Tax cuts as an election campaign issue
Orbán announced extensive tax breaks for families:
- Mothers with three or more children will receive a lifelong income tax exemption from October 2025.
- Mothers with two children are to benefit gradually from January 2026.
- The already planned doubling of the tax allowances for families will come into force in two phases (1 July 2025 and 1 January 2026).
- Parents will be able to deduct 20,000 forints for one child, 80,000 forints for two children and 200,000 forints for three or more children from their taxes.
Attack on LGBTQ+ and NGOs
Orbán announced that Hungary’s Basic Law would be amended along the lines of Donald Trump to strictly define gender as male or female . He also hinted at a possible ban on the Pride parade :
- “The organizers should not bother this year,” he said – the event was a “waste of time and money”.
NGOs with foreign funding are also in the crosshairs:
- An emissary is sent to the U.S. to investigate which organizations have received money from there over the past decade.
- Orbán wants to enact a law based on the model of the US Magnitsky Act to prevent foreign influence.
- He announced that his goal was to “eliminate the Budapest branch of the Soros empire by Easter.”
Geopolitical positioning and cash in the constitution
- Hungary will not support Ukraine’s EU membership.
- The right to use cash is to be enshrined in the constitution, a proposal by the far-right Mi Hazánk party.
Economic measures and industrial policy
The government launches the “100 New Factories” program to promote industrial growth, technological innovation and jobs.
- László Palkovics, the former Minister of Innovation and Technology, will return to the government – but his exact role remains unclear.
Orbán warns of inflated food prices and puts pressure on retailers:
- Economy Minister Márton Nagy is to negotiate with retail chains to stop price increases.
- If no agreement is reached, Orbán wants to enforce price regulations and profit limits for companies.
Further measures
- Pensioners receive a VAT refund on vegetables, fruit and dairy products – up to a certain monthly amount.
- Small villages are to be given a “right to self-defence” in order to “preserve their character and heritage” – Orbán left open what this means in concrete terms.
- Hungarian MEPs will have to submit the same declaration of assets as national MEPs.
- Fight against drugs: Orbán wants to take tough action against synthetic drugs and cheap mixed substances . A new government commissioner is to implement a zero-tolerance policy .
Orbán’s speech underlines his national-conservative agenda: family support, state control over the economy and society, rejection of LGBTQ+ and NGOs, and a tough stance against the EU and Ukraine. The coming months will show how much of this will be implemented – and with what consequences.
Translated and edited by L. Earth