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2 Jul, 2022 13:06

Hungary suggests solution to curb global inflation

A ceasefire in Ukraine instead of anti-Russia sanctions could help tackle rising prices, Hungarian PM Viktor Orban has said
Hungary suggests solution to curb global inflation

A ceasefire in Ukraine instead of anti-Russia sanctions is necessary to stop ‘wartime inflation’, Hungarian Prime Minister Viktor Orban claimed on Friday. However, he said his was the only country advocating this solution.

Speaking on Radio Kossuth, Orban explained that the majority of EU countries believe in imposing sanctions on Russia. He said Hungary, despite having some “red lines” including an oil embargo, has chosen to swim with the tide on this strategy.

However, the prime minister stated that what is needed is not sanctions, but an immediate ceasefire, which would allow both sides to discuss a peace negotiations framework.

“It is in the interest of Hungary and all countries to have peace,” Orban said.

He added that his government is taking certain economic steps, such as limiting prices for certain products, to curb inflation, but this can only serve as a temporary solution.

Stressing that Hungary “must be on the side of peace,” Orban emphasized that the events of the past few months made it clear to Budapest that the speed of the country’s military development should increase substantially.

He explained that the situation in Ukraine is “very serious” and “there is every chance” that the front would move closer to Hungary.

“If we want peace, we must significantly increase our military capabilities now,” he said, adding that “superhuman work” would be needed for that.

NATO, he added, “also feels that there is a problem.”

“The eastern wing of the alliance should be strengthened,” he said.

EU statistics office Eurostat said on Friday that inflation in the euro area had jumped 8.6% in June on an annual basis as the cost-of-living crisis deepened. The rate was up from 8.1% recorded in May, and was higher than expected by economists.

Recession is a period of economic decline, when trade and industrial activity drops, which gradually leads to a fall in GDP. It may result from regulatory actions that focus on battling inflation instead of stimulating economic growth, for instance with rate hikes. Since the start of the year, many nations, including the US and most European countries, have been fighting soaring prices propeled by the Ukraine crisis and anti-Russia sanctions. And now more and more analysts warn that by prioritizing the fight against inflation over growth, these countries will inevitably find their economic growth slowing.