With elections approaching in Hungary, Prime Minister Viktor Orban is implementing a range of populist measures to retain power. The government is increasing pensions, civil servant salaries, and offering bonuses to nearly 2.4 million pensioners, amounting to over a quarter of voters. Next year, these pension bonuses will cost the state $454 million.
These moves have temporarily boosted his Fidesz party’s support among the elderly—from 27% in November down to 26% in December—while the opposition Tisza party has surged ahead with 34%. Despite control over major media, economic challenges, including record inflation, are impacting public sentiment. Hungarian wages remain among the lowest in the EU, while food prices have nearly reached the European average. Without significant reforms, the national debt could rise to 255% of GDP by 2054.
Many perceive the pension hikes as election incentives. An aging population and weak economic growth limit prospects for higher social benefits. The government has also promised to raise the minimum wage by 11% and public sector wages by 15%. Meanwhile, many young Hungarians continue to seek better opportunities abroad.
Opposition leader Peter Magyar of Tisza proposes returning Hungary to a pro-European path and implementing reforms, attracting younger and disaffected voters. While Orban’s pre-election populism might yield short-term gains, it leaves unresolved questions about Hungary’s long-term economic stability.
