Have your say! Hungary’s new National Consultation on wages, business, and housing

The Hungarian government is launching a new economic consultation to engage the Hungarian people in shaping economic policies that address the needs of various social groups.

According to 24.hu, the consultation aims to improve financial stability for families, gradually raise wages, and strengthen the growth of small and medium-sized enterprises (SMEs) in Hungary. The consultation comprises 11 questions covering key issues such as economic independence, the business climate, housing, and pensions.

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The questions in the consultation

The initial questions address trade neutrality, which the government emphasises in light of recent sanctions from Brussels. It argues that maintaining autonomy in economic decision-making is essential for achieving growth rates above the EU average.

In terms of economic policy, the government proposes a clear path that not only incorporates EU recommendations but also balances Western and Eastern European economic models to create principles unique to Hungary. Support for SMEs is central to the consultation, as the government regards them as the engine of the domestic economy. Planned initiatives include direct capital support to help local businesses stabilise and compete with large global corporations.

Regulation of multinationals is another priority, as there are concerns that they often leverage their market power to set prices unilaterally. The government aims to ensure fair market practices to protect both the Hungarian economy and consumers.

The consultation also proposes updates to the wage increase programme, which the government believes will provide stable, predictable growth for workers. The aim is to achieve wage adjustments based on economic growth, with both minimum and average wages rising over time. New measures are also proposed for young people entering the labour market, such as interest-free loans to enhance financial stability early in their careers.

On housing, the government plans to offer tax incentives to companies that assist with employees’ housing costs. It also intends to expand support for young people by increasing housing allowances and building more dormitories, all backed by low-interest housing loans.

For the older population, the government intends to continue the thirteenth month of pension payments, despite differences with Brussels, to improve the financial security of Hungarian pensioners. Family support initiatives include increased child tax credits, which the government views as a more effective response to demographic challenges than Brussels’ migration-focused approach.

On migration, the government advocates an independent policy outside the EU’s current system, rejecting fines for non-participation and seeking to avoid migration penalties.

Previous consultations

The government’s national consultations have faced significant criticism in recent years. Opposition politicians, independent media, and many citizens argue that these consultations do not genuinely seek public input on substantial decisions. Past topics have included consultations on LGBTQ issues and migration. However, the government has notably refrained from holding national consultations on major projects like the Paks 2 nuclear power plant and the Budapest-Belgrade railway line.

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