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Breaking News: Hungarian Government drastically tightens guest worker rules from 2025!

guest worker workers guest workers in Hungary Orbán cabinet

From the 1st of January 2025, the Hungarian government will introduce significant changes to the Migrant Workers Act, resulting in stricter rules for workers from non-EU countries. The changes are designed to ensure that guest workers can return to their home countries and to limit the scope of workers’ countries of origin.

According to the amendment, it is no longer sufficient for the country of origin of the guest workers to simply promise to take them back. The government is demanding a stronger guarantee that workers will actually leave Hungary when their permits expire.

foreign workers guest workers in Hungary
Photo: Pixabay

As Telex reported, the list of countries of origin has also been substantially revised. While the list previously included countries such as the Philippines, Vietnam, Indonesia and Mongolia, the new rules mean that only two countries, Georgia and Armenia, are now eligible to send guest workers to Hungary. This effectively invalidates the previous list and narrows the possibilities for workers to come.

Maximum framework for guest workers from 2025

According to an official statement by the Hungarian Ministry of National Economy, the number of residence permits that can be issued will also be determined from 2025. This number will be capped at 35,000 per year, including both guest workers and residence permits for employment purposes. This move is intended to keep the number of guest workers under control and to adapt it to economic needs.

guest worker workers guest workers in Hungary Orbán cabinet
Photo: depositphotos.com

Government statements and industry reactions

At his end-of-year press conference, Prime Minister Viktor Orbán made it clear that the changes were not unexpected. He stressed that countries that have not undertaken to take back guest workers cannot expect Hungary to accept their workers from the 1st of January 2025. “Ten countries immediately fell off the list, maybe more,” Orbán stated, adding that the countries concerned had been informed in advance. The Prime Minister said that the tightening was in the country’s interest and there was no question of introducing it.

However, the government’s decision was not preceded by a broad consultation of businesses directly involved in the employment of guest workers. News of the tightening therefore came as a surprise to the business community. There had already been talk of the Hungarian government imposing an almost total ban on the employment of non-EU workers in Hungary, but there had been no meaningful consultation on the impact this might have on the economy and the businesses involved.

The importance of these changes

There are several reasons behind stricter regulation. On the one hand, the government is concerned with the protection and stability of the country’s labour market, and on the other hand, it is also focusing on social inclusion issues. Countries that do not ensure the readmission of guest workers will not be allowed to send workers to Hungary in the future, which clearly reflects a tightening of migration policy.

The new guest worker law introduces sweeping changes that severely restrict the countries of origin of workers, cap the number of permits that can be issued and ensure the return of workers to their home countries. While the decision is driven by strategic objectives, the changes may pose unexpected and significant challenges for operators and companies. How the government manages the feedback from economic operators and the labour market will be important in the coming period.

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Featured image: depositphotos.com

Hungary’s MOL set to displace Russia in the Balkan oil race

bulgaria flag

At his end-of-year press conference, the Hungarian Prime Minister Viktor Orbán highlighted a unique economic opportunity: Russia’s Lukoil is putting up for sale one of the most important oil refineries in the Balkans, Burgas Neftochim. Hungary’s MOL is also taking part in the bidding and, as the only EU bidder, the prime minister believes it has a good chance of success. This transaction could be a significant step for Hungary, not only economically but also geopolitically.

According to Telex, Burgas Neftochim is one of the largest and most modern oil refineries in the Balkans, capable of processing seven million tonnes of oil per year. The refinery uses mainly oil from the Black Sea, transported by tanker, and plays a strategic role in the region’s energy supply. Lukoil bought the plant in 1999 and has since made a number of improvements, but the company’s position in Bulgaria has declined in recent years.

MOL
Source: Facebook / MOL

If MOL is successful in acquiring the refinery, it would not only expand its interests in Hungary, Slovakia and Croatia but could also become a key player in the Balkans’ energy supply. The move would give the Hungarian company a strategic advantage in regional markets.

International competition and political challenges

MOL’s chances are boosted by the fact that the Hungarian company is the only EU bidder for the refinery, but the international field is strong: the UK-Catar consortium Oryx Global and London-based DL Hudson were previously seen in the press as the favourites. Although Lukoil has not formally negotiated with them, Bulgarian media have reported that American and Azeri investors have also expressed interest in the deal. The race is not only economic but also political, as the success of the deal depends on the decision of the Bulgarian authorities and the reduction of Russian economic influence in the region.

Bulgaria has a long history of domestic political crises. In addition to parliamentary instability and frequent changes of government, the country’s economic and energy situation is uncertain. Currently, the most prominent political figures are the President of the Republic, Rumen Radev, and the leader of the GERB-SDS coalition, Boyko Borisov. The two politicians have different positions: while Radev is more pro-Russian, Borisov is seen as a supporter of Western integration.

This political dichotomy is also evident in the case of Burgas Neftochim. Viktor Orbán’s support suggests that Hungary sees the acquisition of the Bulgarian refinery as a serious opportunity, but the local authorities’ decision to approve the deal is not without political considerations.

Lukoil in Bulgaria and new opportunities for MOL

Russia’s Lukoil has been a dominant player in Bulgaria for decades, especially after securing long-term port concession contracts for oil transport routes in the Black Sea. In recent years, however, the Bulgarian authorities have tightened their grip on the Russian company. Lukoil has been hit with substantial tax fines, and the Bulgarian government’s actions have made it clear that it is trying to squeeze the company out of the market.

The acquisition of Burgas Neftochim could open up new supply opportunities for MOL. Owning a seaport infrastructure would be a major strategic advantage, as it would allow the Hungarian company to diversify its oil supply routes. Although transport through the Bosphorus is difficult, the refinery would be able to process a significant part of the Kazakh, Saudi or Iraqi oil coming through the Black Sea.

Some experts say that in the long term it would be worth considering the construction of a Bulgarian-Serbian-Hungarian oil pipeline, which would offer a more stable transport alternative. For MOL, such a move would not only improve security of supply, but would also allow further market expansion in the Balkans and Central Europe.

Ending Lukoil’s local dominance could also be important from a geopolitical perspective. The reduction of the Russian economic presence in Bulgaria could lead to increased stability in the region, while MOL’s involvement could strengthen EU interests. Although public opinion in Bulgaria is mixed on the perception of Hungarian political involvement, MOL’s EU background may make it more favourably received than another Russian or foreign interest.

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Trading in Gránit Bank shares starts on Budapest Stock Exchange

Trading in Granit Bank shares starts on BSE

Trading in the shares of Gránit Bank has started on the Budapest Stock Exchange (BSE) on Monday.

Gránit Bank on BSE

Gránit Bank has completed the largest initial public offering in Hungary in the past 25 years, Éva Hegedűs, the bank’s CEO said on Monday after symbolically ringing the bell to start trading in the bank’s shares in the standard category of the Budapest Stock Exchange.

In the subscription period ended in mid-December, investors submitted bids for more than HUF 21bn of shares in the price range between HUF 13,172 and HUF 15,054 as against the original plan of a HUF 7bn minimum issue, Hegedűs said.

The company decided to issue 1,220,820 new ordinary shares with face value of HUF 1,000 and raised fresh funds of HUF 17.7bn.

Retail investors subscribed HUF 11.5bn worth of shares or 64.2pc of the total and institutional investors subscribed HUF 6.2bn or 35.2pc.

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At the end of November, Gránit Bank managed more than 222,000 accounts, had deposits of more than HUF 1,114bn and lending stock of HUF 637.5bn. The bank’s market capitalisation is HUF 262.3bn and its shareholders’ equity is HUF 278.7bn.

The CEO said 19.53pc of the bank’s shares are traded on the bourse after the IPO, but the aim is to reach the 25pc required for premium category membership.

Shareholders with an over 4pc stake are TiberisDigital (István Tiborcz’s company holding a 39.19pc stake), Gránit Bank’s employee stock ownership programme (34.96pc stake), Pannonia Pension Fund (6.31pc stake), E.P.M. Kft (Éva Hegedűs’s company, part of the freefloat, 4.15pc) and other small investors (part of the freefloat, with a 15.39pc stake), Gránit bank said on the BSE website.

Long-term strategy

Under its long-term strategy, Gránit Bank plans to raise net profit from HUF 21.6bn this year to HUF 122bn in 2033, total assets from HUF 1,300bn in 2023 to close to HUF 6,000bn, lending stock from HUF 528m last year to HUF 3,290bn, and the deposit stock from HUF 929bn to HUF 5,162bn.

Hegedűs said the bank will spend 50pc of the fresh funds on developing retail and business lending, 35pc on business development, acquisitions and expansion abroad, and the remaining 15pc on AI-based development.

read also: Forint reaches new historic lows against EUR, GBP, USD, 420/EUR rate expected in 2025

Waberer’s to acquire majority stake in GYSEV Cargo

gysev

Waberer’s International is to acquire a 70pc stake in GYSEV Cargo, the listed Hungarian hauler said Monday.

Waberer’s, which signed an agreement to buy 62.5pc of the shares of GYEV Cargo on Monday, committed to raise the company’s capital by close to EUR 4,85m (HUF 2bn) to develop railway logistic infrastructure. The transaction will close at the end of the first half of 2025. GYSEV, the current owner of 100pc of GYSEV Cargo, will keep its 30pc stake in the target company after the transaction.

GYSEV Cargo is Hungary’s second largest railway transport service provider and can also provide services in Austria through its Austrian subsidiary Raaberbahn Cargo. GYSEV Cargo operates the container terminal in Sopron (W Hungary) at the Intermodal Logistics Service Centre, which is owned by GYSEV. It will also operate the intermodal container terminal under construction at the Debrecen-Macs Industrial Park railway station.

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With the acquisition of a majority stake in the PSP Group earlier this year, Waberer’s also entered the Romanian market as a railway transport service provider so it now has operations in three countries.

Waberer’s said it is continuously considering business development opportunities in railway logistics.

Waberer’s majority owner is Viktor Orbán’s son-in-law, István Tiborcz, who has only a minimal stake as a private individual. Still, through two companies belonging to the BDPST group (Merkport Zrt. and Geraldton Invest Zrt.) owned by him, his interest exceeds 50 percent.

As we wrote a week ago, major renovation underway for Budapest’s historic Exchange Palace on Szabadság Square.

AutoWallis could secure important stake in Romania’s car import market

nissan

Listed car seller AutoWallis on Monday announced that it is to obtain distribution rights for Nissan in Romania together with the Portuguese Salvador Caetano Group, as the new national importer for the brand.

AutoWallis said, under the deal it concluded, AutoWallis Caetano – a joint venture in which it and Salvador Caetano each hold a 50pc stake – is to acquire exclusive Nissan distribution rights in Romania, providing regulatory conditions are met.

The start of operations of the new organisation is scheduled for June 1st, 2025.

AutoWallis CEO Gábor Ormosy said this is the third shared venture between the Hungarian and Portuguese companies: AutoWallis and Caetano Group joint ventures companies hold the importer rights of Renault, Dacia, and Alpine in Hungary and own a Renault and Dacia retail unit in Budapest.

autowallis
Source: AutoWallis

He added that AutoWallis will continue its independent growth, developments, acquisitions, and the implementation of its strategy in other areas.

AutoWallis is already present in 16 countries in the region, representing 27 brands, while Salvador Caetano has significant experience in vehicle sales primarily on the Iberian Peninsula, in Scandinavia, and South America and Africa.

AutoWallis had (EUR 0,88bn) HUF 366bn revenue last year.

In the statement, the company said that the AutoWallis Group is continuing to expand its activities in the Czech Republic after purchasing the MILAN KRÁL GROUP, operating in the southern part of the country. As a result of this step, after buying three BMW dealerships from Stratos Auto this summer, they will be present in the Czech vehicle market with Ford and Mercedes-Benz in addition to BMW and in the sales and servicing of Mercedes-Benz Trucks.

As we wrote ten days ago, AutoWallis issues EUR 20m bond in private placement

Source: depositphotos.com

Shrinking trade surplus highlights Hungary’s growing economic woes

Daily News Hungary Logo Új

Hungary had a EUR 1.039bn trade surplus in October, a second reading of data released by the Central Statistics Office (KSH) on Monday shows.

Latest trade surplus data

Exports fell 0.5pc year-on-year to EUR 12.927bn. Imports edged down 0.1pc to EUR 11.888bn, KSH said. Trade with other European Union member states accounted for 76pc of Hungary’s exports and 71pc of its monthly imports.

For the period January-October, Hungary had a trade surplus of EUR 10.368bn. Exports fell 3.9pc to EUR 121.341bn and imports declined 6.3pc to EUR 110.973bn. Hungary’s terms of trade improved 0.7pc during the period as the forint weakened 2.7pc against the euro and 2.1pc to the dollar.

In October 2024 compared to a year earlier:

The value of export decreased by 0.5% and that of import by 0.1% in EUR terms.

According to calendar-adjusted data, the volume of export lessened by 4.0%, that of import decreased by 1.8%.

The balance of the external trade in goods deteriorated by EUR 53 million. (The balance showed a EUR 74 million higher surplus than the one published in the first estimate.)

The HUF price level of the external trade in goods increased by 4.0% in exports and by 2.7% in imports, compared to the same month of the previous year. The terms of trade improved by 1.3%. The HUF exchange rate depreciated by 4.2% against the EUR and by 0.9% against the US dollar.

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The export volume of machinery and transport equipment decreased by 3.4%, its import volume did not change. The volume of the commodity group of electrical machinery, apparatus and appliances, n.e.s. decreased nearly by one-fifth in exports, decreasing by one-tenth in imports, too, compared to the same period of last year. The export volume of the commodity group of road vehicles slightly declined, its import volume increased in an equal degree, compared to the base period. The export volume of the commodity group telecommunication and sound recording and reproducing apparatus slightly decreased, its import volume, however, improved by almost one-fourth. The volume of the power generating machinery and equipment commodity group decreased somewhat on the export side, and was around one-fifth lower on the import one, year-on-year. The aggregate commodity group of machinery and transport equipment increased the volume decline in total turnover by 2.0 percentage points on the export side while it did not have an impact on the import turnover.

The export volume of manufactured goods increased by 4.1%, their import volume by 0.5%. The increase in export volume was due to the significant volume increase in medicinal and pharmaceutical products. The growth in the volume of imports can also be attributed to the group of medicinal and pharmaceutical products. The aggregate commodity group of manufactured goods offset the volume decline in total turnover by 1.2 percentage points in exports and increased the growth in import volume by 0.2 percentage points.

The export volume of fuels and electric energy increased by 2.7%, their import volume was 3.8% higher than one year earlier. The growth on both the export and import side is owing to the increase in the volume of petroleum, petroleum products and related materials.The change in the turnover of fuels and electric energy slowed the volume decline in total turnover by 0.1 percentage point in exports and hastened the general increase in import volume by 0.3.

The export volume of food, beverages and tobacco became 6.3% higher, their import volume increased by 8.3%. The growth in export was largely influenced by the change in the turnover of miscellaneous edible products and preparations, the increase in import was influenced by the turnover change of cereals and cereal preparations. The volume change realised by the aggregate commodity group offset the total export decrease by 0.5 percentage points, and strengthened the import growth by 0.5 percentage points.

The volume of exports to the EU-27 Member States lessened by 3.1%, and the import from there increased by 3.6%. The balance of the external trade in goods declined by EUR 441 million, generating a surplus of EUR 1304 million. This group of countries accounted for 76% of exports and 71% of imports.

In the extra-EU-27 trade, the volume of export increased by 9.3%, that of import lessened by 3.6%. The external trade balance in goods with these countries improved by EUR 388 million, showing a deficit of EUR 265 million.

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Traffic at Budapest Airport approaches record, cargo at all-time high

Budapest Airport

Budapest Airport, part of the VINCI Airports network, recorded extremely strong passenger traffic in November.

11-month passenger traffic at Budapest Airport approaches record, cargo hits all-time highs

Budapest Airport, part of the VINCI Airports network, recorded extremely strong passenger traffic in November, with a total of 1,401,245 passengers using Ferenc Liszt International Airport, which is not only 22% higher than last year’s figures, but also 10% higher than the previous record-breaking November of 2019. Remarkably, the airport’s passenger traffic has broken records every month this year, exceeding the 2022 full year total by September. By November, passenger traffic not only surpassed the 2023 12-month total by 1.3 million passengers, but also exceeded 16 million, approaching the previous record total from 2019, bud.hu.

Budapest Airport
Photo: FB/Budapest Airport

The most popular destinations in November were London, Milan and Paris

The volume of cargo handled also set a record in November, with 31,121 tonnes handled in Budapest, 40.1% more than in the same period last year. The 271,962 tonnes of goods handled in the first eleven months of the year not only exceeded last year’s total by 49%, but has already surpassed the total volume handled in 2023. As with passenger traffic, air cargo volumes in each month of the year have exceeded the volumes registered in the same periods of the previous year.

How to make your Christmas travels carefree – rules and tips for festive travel

Terminal 2 at the airport is adorned with Christmas lights. In addition to creating a festive atmosphere, Budapest Airport pays special attention to managing the increased traffic over the Christmas period, to ensure a comfortable and seamless passenger experience for everyone. As part of this effort, the airport operator will provide a high staffing level, adjusted to the volume of traffic, and will also operate security checkpoints in line with traffic, helping to minimise waiting times.

In order to ensure seamless security screening, Budapest Airport asks passengers to check the latest information before departure about prohibited items that cannot be carried in hand baggage or hold baggage: fireworks and sparklers, for example, are considered hazardous for aviation and cannot be carried in hand or hold baggage. Of the tools commonly used in the run-up to Christmas, rolling pins and poppy seed crushers may only be carried in hold baggage, and care should be taken to ensure that only snow globes with a capacity of less than 100 millilitres are carried in hand baggage, and that this information is clearly marked on the item by the manufacturer. Snow globes larger than this can be carried in hold baggage.

Due to the increased traffic over the festive period, please arrive early at the airport, use online check-in and self-service baggage drop-off, and remember that larger electronic items, such as laptops and hairdryers, no longer need to be removed from hand baggage during security screening.

Budapest Airport’s tree planting campaign continuing

As well as reducing the airport’s carbon footprint, Budapest Airport, part of the VINCI Airports network, is also acting to protect local natural assets. This year, Budapest Airport’s employees have again joined forces for the environment: in December, 20 employees planted a total of 650 saplings in Ócsa. This year, the third tree planting campaign, in cooperation with the Forest Savers (Erdőmentők), has already added 21,000 trees to the forest near Ócsa and the Danube-Ipoly National Park.

Experts also paid particular attention to ensuring that the initiative was carried out in places where it was really needed. Climate change has led to the emergence of a fungal species on the nature trail in Ócsa, which has attacked the native forest-forming tree species of the wetland forest. The only chance of preserving this habitat, unique in Europe, is to plant tree species that are resistant to the invasive fungus.

In addition to the December campaign, Budapest Airport is supporting the work of the Forest Savers, with several million forints, who will use the funds to plant a total of 8 000 tree saplings in protected areas this season, as well as to achieve other conservation goals.

In addition, the joint project of the Municipality of Rákosmente and Budapest Airport aiming to save the Merzse marsh, reached an important milestone in the spring. The necessary preparatory surveys and environmental impact assessments have been successfully completed, and the subsequent on-site works will allow the Merzse marsh and the Little Merzse to regain their former ecological values in the future. Budapest Airport provided support of 10 million HUF for the project. Please click here for more information.

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Good news: Preparations for the construction of Budapest Airport Terminal 3 under way

Budapest Airport Terminal 3 (Copy)

Budapest Airport experienced the strongest passenger growth in Europe in October, with passenger numbers set to exceed 17 million by the end of the year. The airport operator expects robust growth in passenger traffic in the future as well, which is why the owners and the company’s management have started preparations for the construction of Terminal 3, which will ensure that the growing passenger traffic can be handled with high service quality.

Ferenc Liszt International Airport has set individual records in every month of 2024 in terms of passenger numbers so far, and by the end of October, total passenger traffic has surpassed the total figure for the previous year. By the end of the year, the airport could serve more than 17 million passengers. As a result of VINCI Airports’ excellent airline relations and Budapest Airport’s aviation development work, even more new long-haul flights could be launched from Budapest in the future. Based on these factors and considering Hungary’s attractiveness as a touristic destination, the owners and management forecast 20 million passengers by 2030. Preparations for the construction of the new Terminal 3 have therefore started this year, bud.hu wrote.

budapest airport terminal 3

“Based on the results so far, we can already see that we will handle a record number of passengers at the airport by the end of this year, which is not surprising, as Budapest and Hungary are becoming increasingly popular worldwide and more and more tourists are arriving every year,” said Francois Berisot, the CEO of Budapest Airport. He emphasized: “Significant developments are needed to serve the increasing passenger traffic with high quality. The design of Terminal 3 and some related construction works are already underway, and execution could start soon. The goals are ambitious; to serve more and more passengers, with high quality and continuously expanding infrastructure.”

Budapest Airport Terminal 3 (Copy)
Máté Lóga, state secretary for economic strategy, industry, financial resources and macroeconomic analysis / Chairman of the Board of Directors of Budapest Airport and Francois Berisot, CEO of Budapest Airport. Photo: Budapest Airport/bud.hu

Terminal 3 will be sustainable

One of the first works related to the new terminal is the earth backfill works required for the construction of the new apron. The future apron extension will allow 12 aircrafts to be handled simultaneously and will be the first phase of a major apron development.

The development and design of Terminal 3 will be carried out with sustainability aspects in mind, in line with Budapest Airport’s goal to reduce its emissions to zero by 2030, 20 years ahead of the deadline defined by Airports Council International. All elements of the terminal development are expected to be completed within eight years.

According to KPMG’s study, the investment and construction activities associated with the construction of Terminal 3 could create up to 63.9 billion HUF of indirect value added through the supply chain by 2027, provide jobs for 6 400 people and contribute up to 23.4 billion HUF to the incomes of Hungarian families.

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Are Romania and Bulgaria ahead of Hungary in adopting the euro?

As Hungary grapples with its long-delayed euro adoption, many wonder if Romania and Bulgaria are already ahead of Hungary. Bulgaria appears to be making significant strides towards joining the eurozone, with plans to potentially adopt the euro as early as January 2026. In contrast, Romania faces a more challenging path.

Hungary’s new efforts

As Economx writes, Mihály Varga, Hungary’s incoming central bank governor, is poised to introduce a new monetary policy alongside the country’s euro adoption efforts, believing that such preparations will bolster the Hungarian economy. During a parliamentary hearing, Varga emphasised three key points: Hungary’s commitment to adopting the euro hinges on economic readiness, which can foster sustainable development and mitigate risks; economic policy must meaningfully align with these conditions while preserving policy autonomy; and decisions regarding euro area membership will require consensus between the central bank and the government.

Are Romania and Bulgaria ahead of Hungary in adopting the euro?
Photo: depositphotos.com

Procrastination

Hungary‘s path to euro adoption has seen numerous delays and shifting timelines since the first Orbán government aimed for a 2007 target. While initial convergence criteria were nearly met, subsequent governments, including those led by Péter Medgyessy and Gordon Bajnai, pushed adoption dates to 2013-2014, only to see prospects diminish following the 2008 financial crisis, significantly weakening the forint.

By 2011, Prime Minister Viktor Orbán deemed a 2020 introduction unrealistic due to economic instability. Despite these setbacks, officials like Mihály Varga reaffirm Hungary’s commitment to the euro. However, György Matolcsy suggested that adoption may not be feasible until after 2030 when Hungary reaches about 90% of the EU’s average development level.

What about Bulgaria and Romania?

While Hungary currently has no competition for euro adoption in the region, Bulgaria is poised to potentially overtake it, with plans to adopt the euro as early as January 2026, contingent on meeting accession conditions. Bulgarian National Bank Governor Dimitar Radev has stated that inflation is expected to decline to acceptable levels by January. However, the country faces a significant budget deficit of EUR 9 billion, about 8% of GDP.

In contrast, Romania’s path to euro adoption appears more distant due to high budget deficits and socio-economic challenges, including poverty and corruption. Currently, Romania does not meet the necessary macroeconomic criteria for joining the euro area, with inflation projected at 7.6% this year. Experts suggest that Romania may not be ready for euro adoption until around 2034.

Romania Hungary economy flag
Photo: depositphotos.com

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Featured image: depositphotos.com

Planned guest worker ban linked to Hungarian government’s fears of rising unemployment?

guest workers ban hungary

Recent reports suggest that the Hungarian government may be planning to implement a ban on employing guest workers from non-EU countries, effective 1 January 2025. This move has sparked concern among local businesses, particularly those that rely heavily on foreign workers. While the government has not officially confirmed the proposal, industry leaders are speculating that rising unemployment rates may be the driving force behind this drastic measure.

As we reported before (HERE and HERE), sources indicate that, under the new policy, workers from most non-EU countries would no longer be eligible for new work permits, with the notable exception of those from Georgia. The measure would also prevent the extension of work permits beyond the current one-year option for workers who were initially granted two-year permits. This potential legislation has left businesses, especially in sectors like manufacturing, logistics, and delivery services, anxious about the future of their workforce.

No consultation between government and businesses

The government’s decision to introduce this policy with minimal consultation has caused confusion and panic among company leaders. Some have speculated that the government is attempting to preemptively tackle expected increases in unemployment in the coming months, 24.hu reports. Concerns are rising that, as the economic situation worsens, local workers may begin losing their jobs, and the government may want to avoid visible signs of foreign labour filling those gaps.

guest workers ban hungary
Photo: depositphotos.com

For companies like Master Good, which depend on a significant number of guest workers, the move could have dire consequences. Without guest workers, these companies fear that growth could be unsustainable, and current production levels may even decrease.

Though the details of the proposed regulation remain unclear, the rapid, potentially disruptive change is concerning for many businesses. Company executives argue that such a sweeping policy change cannot be implemented without proper discussion and a reasonable adjustment period. Given the economic challenges already facing Hungary, they worry that restricting guest worker employment could further harm the economy, potentially causing a significant downturn in the country’s GDP.

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Featured image: depositphotos.com

Good news: 2025 will be a better year in Hungary’s property market, says Duna House

Hungary property market in 2025 Duna House

After this year’s reversal of trends, a strengthening real estate market in terms of transaction numbers and prices, an ever-widening customer base, and a further 10pc expansion of the credit market are expected next year, listed real estate broker Duna House said in its forecast for 2025 on Friday.

The company said government measures, like the Home Purchase Subsidy Scheme (CSOK) Plus, housing allowance from employers used for rent and loan repayments, state-subsidised credit for young Hungarian blue-collar workers, could raise demand and from the investor side capital from government bond payments could add 20,000 transactions.

Duna House expects supply will not be able to keep up with buyer interest, so it is possible that prices will start to increase to a greater or lesser extent depending on the property type, condition and location. Annual price increase could be around 10-20pc in 2025.

Hungary property market in 2025 Duna House
Photo: depositphotos.com

The company said annual home sales this year could be around the middle of the 110,000-130,000 band, which is an approximately 14pc increase compared to 2023 and a two-year high.

Central bank issues instructions to boost competition on home insurance market

The National Bank of Hungary (NBH) has issued four executive circulars in connection with the annual home insurance campaign due in March instructing insurers and insurance brokers on best practices to boost competition on the home insurance market, the central bank said on Friday.

The NBH instructed insurers on displaying data to help consumers compare offers and switch insurers.

It also made the conditions for announcing consumer-friendly home insurance premiums more flexible to make these policies more competitive with conventional ones.

The NBH also made it clear in the customer information document that contracts cancelled during the campaign uniformly terminate on April 30 (until which date the premiums must be paid). In order to protect their property, the customers concerned must have a new insurance policy from May 1.

Another circular concerns the term discounts offered by several insurers (the principle that those who contract for a longer period pay a lower premium). Due to rapidly changing customer needs, the NBH considers a maximum three-year discount to be good practice.

In the circular addressed to insurance brokers, the NBH said it expected insurance brokers to review the policies of customers with active home insurance contracts every two years. Insurance brokers must inform customers on whether their insurance policies cover the value of the insured assets. They must also inform customers on the option of consumer-friendly home insurance.

The NBH also touched on condominiums, calling on insurance brokers to develop online calculators to help condominiums with a maximum of six apartments choose between offers. For larger condominiums, the NBH urged insurance brokers to contact their representatives in January or February in order to review the condominiums’ property insurance.

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  • Several companies in great need of guest workers shocked by Orbán cabinet’s ban proposal – read more HERE
  • Forint reaches new historic lows against EUR, GBP, USD, 420/EUR rate expected in 2025 – details in THIS article

Forint reaches new historic lows against EUR, GBP, USD, 420/EUR rate expected in 2025

The forint is struggling against the euro, the British pound, the American dollar and the Polish zloty again. Against the GBP, it reached a new historic low yesterday (505/GBP), but it fell to a historic low against the zloty as well. Experts believe that the forint would pass a new psychological barrier in 2025. However, the new Hungarian National Bank governor seems supportive towards the introduction of the euro.

Hungarian forint reached new historic lows

The Hungarian forint was at a historic low against the euro in October 2022 with 434.11. Thankfully, that exchange rate did not remain for a long time. Due to the intervention of the Hungarian National Bank, the forint was saved then. But it seems the relief was only temporary. The exchange rate of the Hungarian national currency has been worsening ever since. Yesterday, it reached 416/EUR and, experts believe, it will exceed the 420/EUR limit in 2025.

The bad news is that the value loss is gradual, and the Hungarian National Bank does not seem to want to intervene and save it. Some economists believe the Orbán cabinet is weakening the forint on purpose because they need a weak forint to preserve the country’s competitiveness and make it attractive to foreign companies for exports.

The British pound reached a historic record against the forint yesterday with 505/GBP. The American dollar also strengthened, exceeding the 400/USD limit, Portfolio wrote.

New national bank governor for introducing the euro in Hungary

According to Economx, the currency exchange rate of the euro was above 416 today, and, in 2025, we will reach the 420/EUR level.

Based on the prognosis of the Hungarian National Bank, inflation in 2025 will be between 3.3% and 4.1%. ING Bank believes the average inflation will be around 4.2%. The bank expects a significant rise in state incomes due to higher taxes. Meanwhile, they listed the currency exchange rate swings of the forint and the expected significant wage rise as risks.

The bank expects the forint to end the year at the 410-413/EUR threshold. Mihály Varga, the Hungarian National Bank’s governor after March, could not define an exchange rate that would help the Hungarian economy next year.

However, during his hearing in the Parliament’s Economic Committee, he surprised the public by openly expressing support for the euro’s introduction in Hungary. Economist Géza Sebestyén said nobody could tell when Hungary would become a member of the eurozone but added that 2035 could be a realistic target.

We wrote about the spontaneous euroisation in THIS article.

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Analysts predict a bleak future for the Hungarian forint

National Bank of Hungary launches HUF 15,000 coin

Several companies in great need of guest workers shocked by Orbán cabinet’s ban proposal – UPDATED

The Orbán cabinet may decide about the total ban on employing third-country guest workers in Hungary from 1 January. The news shocked several sectors in Hungary, especially the catering and the home delivery sector which are struggling with the lack of workforce. The Hungarian government may decide on a total ban due to domestic reasons. However, even the Hungarian Chamber of Commerce and Industry’s head says the government should not move so urgently on such a delicate issue.

Immigrants take the work from the Hungarians, said Orbán’s Fidesz

The Orbán cabinet has been one of the greatest advocates of stopping illegal migration to Europe from the Middle East and Africa. In the previous decade, the prime minister and his Fidesz party accepted harsh rules against illegal migrants, built a fence at the Southern borders and allied with European and North American forces that are against migration.

In 2015, they started a billboard campaign saying that migrants take the work from Hungarians, so they should be stopped before entering the country. The campaign was successful, but rural Fidesz leaders active in the electoral districts and mayors see changes in the issue locally.

Some were complaining about the growing number of legal migrants who come to Hungary to work here for 2+1 years and “take the work from the locals”. Of course, the second part of the statement is factually untrue. The Hungarian economy could employ tens of thousands because it struggles with a structural labour shortage. Others were complaining about the possible security challenges the newcomers generated.

Read also: Shocking proposal: Hungary plans ban on non-EU guest workers starting 1 January

Fidesz grassroots complained about the guest workers

However, optics are crucial for the government and its communication. Based on a 2023 poll by Publicus, 53% of Fidesz voters disapprove of the influx of guest workers. Their support is essential in 2026 when Péter Magyar’s Tisza Party has a realistic chance to defeat Orbán.

PM Orbán heard the complaints from Fidesz grassroots and seems to have decided to act. Based on a previous report, the government may decide on the issue next Wednesday, so the sectors affected and somewhat paralysed by the news do not have much time to act.

According to g7.hu, only a fraction of the number of 2023 guest workers came this year. However, for example, in the catering sector, firms close one after the other because there are no employees for the night and weekend shifts. Orbán promised significant economic growth for next year, which is also hard to imagine without a new workforce, József Nógrádi, trade director of the Trenkwalder group, said.

Will the ban be postponed?

Therefore, lobbying started to postpone the effect of the new measure for at least six months.

We know the government would not like to ban the Georgian workforce, but they will not be enough to fill the gaps in the Hungarian labour market. Others lobby to exempt the Philippines, criticising Vietnamese, who – after acquiring their permit – go to Germany to receive higher salaries.

The new head of the Hungarian Chamber of Commerce and Industry was also surprised to hear about the government proposal. When he replaced government-close László Parragh, he said he agreed to a new cooperation framework, which means they can take part in the drafting process of new measures from the beginning. However, this time, nobody asked for their opinion.

Georgia is not enough

Elek Nagy said the government wants to make agreements with the home countries of the guest workers about taking them back if needed. Hungary had such a contract only with Georgia, which is the reason for the Caucasian country’s exemption.

Nagy believes the Hungarian reserves are not enough to satisfy the needs of the economy. Meanwhile, Georgia’s population is just 3.5 million, while the Philippines has almost 120 million inhabitants. Consequently, signing new treaties with more populous countries is crucial.

Experts believe a ban would not immediately have a devastating effect because most guest workers can remain here for months or even 1-2 years.

Interestingly, other Central and Eastern European countries try to ease the employment of guest workers.

The number of third-country employees in Hungary stays around 70-80 thousand, but the growth in their number is constant. Between 2019 and 2024, for example, that number increased from 60 thousand to almost 100 thousand.

UPDATE: Hungary committed to contributing to efforts aimed at stopping migration

Hungary is committed to continuing its contribution to the success of international ambitions aiming at stopping illegal migration and tackle its root causes, the foreign minister said in New York on Thursday.

The ministry cited Péter Szijjártó as telling the United Nations General Assembly session focusing on migration that it was not an exaggeration to say that we are living in an era of dangers and as an impact under the threat of terror and extremist ideologies, there are more and more people in the world who are forced to leave their homes. In the last ten years, more than 120 million people became migrants, refugees, IDPs, he added.

“In this very complicated situation I think there are two very important aspects we do have to take into consideration. First, international law must be respected. With this we can avoid additional massive migratory waves to break out putting the security and safety of countries at risk. And on the other hand, instead of managing or inspiring migration, we should work on tackling the root causes,” the minister said.

“International law makes a very very clear difference between migrants and refugees. Unfortunately nowadays the expression and legal status of refugees is being misused, which is a very dangerous phenomenon. International law speaks very clearly: if someone is forced to leave his or her home, he or she is entitled to stay on the territory of the first safe country. And international law doesn’t speak about second, fifth, tenth or twentieth safe country,” he added.

“Therefore, violation of a border between two safe countries must not be taken into consideration as a human rights issue, but as a security issue and as a crime,” he said.

“Hungary’s example is the real one here, we have been under a double pressure by migration and the refugees for the last ten years. On one hand we have been living for more than a 1,000 days in the neighbourhood of the war in Ukraine from where we have received 1.4 million refugees. They have full access to our schools, kindergartens, health care, and to the labour market. We have been carrying out the biggest ever humanitarian operation of our country. We let everybody come in from Ukraine who are fleeing from the war because for them we are the first safe country. But at our southern border we are under a huge migratory pressure. There we are protesting the external border of the European Union laid on the busiest land route. During the last 3.5 years we have stopped more than half a million illegal migrants.

Hungary remains committed to protecting its borders and remain maintaining its sovereign right to make a decision on who can enter our country and with whom we are ready to live together, said the minister.

He said that “in the meantime, we give all our support to those who are fleeing from the war in Ukraine. And we support all kinds of initiatives which are pointed at peace being made in our neighbourhood, which is the only way to save lives of the people, ending suffering of the families, and stop forcing people to leave their homes.”

But in the meantime, inspiring people to leave their homes brings forward many risks on countries of transit and destination puts the lives of people who are leaving their homes at risk on many occasions and feeds the business model of smugglers and traffickers. So instead of inspiring people to leave their homes, we do have to stop migration by tackling the root causes on the spot. We have to carry out development programmes, by those creating new jobs, creating better education, and better access to health care where it is needed.

Over the last five years, Hungary has spent some 2 billion euros on development assistance focusing on humanitarian help, especially to the Christian communities who are among the most persecuted communities in many parts of the world., the minister noted.

“Hungary is committed to continue to contribute to the success of international ambitions aiming at stopping migration, tackling the root causes and carrying out development programmes in all parts of the world to make the lives of people better where they have been living,” he said.

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MOL more than doubles its solar energy production with new acquisition

MOL more than doubles its solar energy production

Hungarian oil and gas company MOL on Thursday said it agreed with German-owned Optimum Vogt to acquire 100pc of Naperőmű Farm, which oversees construction of a 66 MWp photovoltaic plant in Ballószög (C Hungary).

Trial runs of the plant are expected to start in January 2025. The transaction more than doubles MOL’s renewable energy generation capacity, MOL said.

The electricity generated by the plant will be sold through listed alternative energy company Alteo. The facility will generate electricity equivalent to the consumption of 20,000 average Hungarian detached family homes.

MOL more than doubles its solar energy production
Photo: MTI

The MOL group has 6 solar parks in Hungary, with combined capacity of 31.5 MW, and it also has photovoltaic capacity of 13.6 MW in Croatia. In line with its strategy, MOL aims to increase its renewable energy generation capacity to 200 MW by 2026 at group level through further solar park investments in both countries. As part of this, MOL Petrolkémia recently announced plans to build a 48 MW solar park in Tiszaújváros, scheduled to be completed in the second quarter of 2026.

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Average gross wage climbs again in Hungary significantly

Industry Eurocircuits worker average gross wage

The average gross wage in Hungary rose 12.9pc year-on-year to HUF 637,200 in October, data released by the Central Statistics Office (KSH) on Friday show.

Net wages climbed at the same pace to HUF 423,800. Real wages rose 9.4pc, calculating with October CPI of 3.2pc. The gross median wage increased 15.9pc to HUF 529,000. Hungary’s statutory monthly minimum wage was raised by 15pc to HUF 266,800 for unskilled labourers and by 10pc to HUF 326,000 for skilled workers from December 1, 2023.

Excluding Hungarians working full time in fostered work programmes — who earned on average gross HUF 131,600 in October — the average gross monthly wage was HUF 647,400.

forint euro money average gross wage
Source: depositphotos.com

The average gross wage in the business sector, which includes state-owned companies, rose 12.0pc to HUF 642,100. The average gross wage in the public sector climbed 15.8pc to HUF 616,900. In the non-profit sector, the average gross wage increased 14.7pc to HUF 646,700.

For the period January-October, gross wages averaged HUF 633,900 and net wages came to HUF 421,500, both up 13.6pc from the same period a year earlier.

As a result of favourable wage dynamics and persistently low inflation, real wages have been increasing continuously and significantly for 14 months, Sándor Czomba, the state secretary for employment policy, said in a statement.

Thanks to the government’s measures, the purchasing power of family’s incomes is steadily increasing, which boosts consumption, and contributes to the Hungarian economy achieving growth above 3pc in 2025.

Read also:

  • Hungary’s income decline: 8 in 10 citizens fall behind European peers -read more HERE
  • Dynamic wage growth expected in coming years in Hungary, Orbán cabinet believes

Two of Hungary’s favourite retail chains open new stores: here is where and when!

retail chain store pepco

Two of Hungary’s favourite retail chains, Rossmann and Pepco, are set to open new stores this spring, bringing convenience and variety to shoppers in a rapidly developing area of Miskolc. The new locations will offer everything from cosmetics and household goods to clothing and home decor, meeting the growing demand for accessible retail options outside the city center.

Exciting news for residents of Miskolc’s iconic Diósgyőr district! Renowned retail chains Rossmann and Pepco will open new stores on Kiss Ernő Street by late February or early March, creating what could be dubbed a local shopping centre, BOON reports. The development follows significant demand for such outlets in the area.

Photo: depositphotos.com

First of these retail stores in Diósgyőr

While Miskolc already boasts several Rossmann and Pepco locations, Diósgyőr and nearby neighbourhoods like Kilián and Bulgárföld lacked easy access to these retailers. Until now, locals had to travel to the city centre for household essentials, clothing, or beauty products.

The new Rossmann store will offer a wide range of cosmetics, personal care items, and household goods. Meanwhile, Pepco will cater to budget-conscious shoppers with clothing, home accessories, and kitchenware. Residents are particularly excited about Pepco, as no similar store previously operated in the area.

Locals’ concerns about the new stores

Despite the enthusiasm, some locals have raised concerns about traffic management around the new stores, noting challenges with access and parking. Construction on the site began last July, and while job postings for the stores haven’t been announced yet, they are expected in the coming weeks.

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Featured image: depositphotos.com

Debrecen Airport renewal on the agenda to recover pre-pandemic passenger volumes

Debrecen Airport is set for modernisation, with plans for a new runway and expanded infrastructure to boost passenger and cargo capacity. Despite reduced flights and an ageing runway, upgrades and new cargo operations, like the China–Debrecen service, aim to restore pre-pandemic traffic and solidify its role as a regional hub.

Debrecen Airport’s great potential

As we have reported HERE, Debrecen Airport anticipates surpassing 300,000 passengers this year, maintaining last year’s levels despite reduced capacity from Wizz Air. Backed by the Ministry of National Economy, efforts are focused on recovering pre-pandemic passenger volumes by reintroducing popular routes and exploring new markets. Meanwhile, the airport’s cargo operations are thriving, highlighted by the recent launch of a China–Debrecen service delivering 30 tonnes of goods four times weekly. Infrastructure upgrades, including an expanded terminal accommodating four simultaneous departures, aim to support medium-term plans to restore passenger traffic to its 2019 peak of over 600,000 travellers annually.

However, the ageing runway, nearing the end of its design life, requires urgent rehabilitation to ensure long-term operations. Sustainability measures, such as electric ground support equipment and upgraded security systems, reflect the airport’s commitment to green energy trends. Strategically located with strong road and rail links, Debrecen Airport is positioned as the region’s leading hub for passenger and freight transport, with ambitious plans to expand routes, reduce seasonality, and enhance connectivity across Hungary and neighbouring areas.

Hungary Debrecen International Airport
Photo: facebook.com/debrecenairport

Renewal on the horizon

As Mfor writes, Debrecen Airport is set for modernisation with plans for a new runway, though funding remains uncertain. Passenger traffic lags far behind the 2019 peak of 600,000, expected to drop to under 300,000 this year, following Wizz Air’s base closure and route cuts. In contrast, Lufthansa’s four weekly flights, primarily serving the BMW factory workforce, highlight the airport’s evolving role in regional economic development. However, outdated infrastructure continues to hinder growth; the Soviet-era runway, temporarily closed this summer due to its poor condition, urgently requires replacement. Plans for a new runway to enable future airport expansion are in motion, but the timeline remains unclear.

debrecen airport
Source: László Papp/Facebook

Cargo flights between Debrecen and China

Debrecen Airport is gearing up for expansion amid rapid regional investment growth. From November, cargo flights between Debrecen and China will operate four times a week, driving the need for increased warehouse capacity. Xanga Group, the airport’s former owner, has partnered with Ghibli Transport Ltd. to lease a 22,000-square-metre warehouse for freight storage, set to open next April, with plans for further expansion by 2026. Xanga is also finalising an 80-room airport hotel, addressing growing demand as the airport evolves into a key logistics hub.

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Be prepared: Traffic at Budapest Airport to be brutal at Christmas

Prepare for brutal traffic at Budapest Airport this Christmas! The holiday season is not only a busy time for shopping malls but also for air traffic control, which receives special attention during this period. HungaroControl Plc. is preparing for the Christmas rush with reinforced capacities, ensuring smooth air traffic management. However, travellers should be prepared for large crowds at Budapest’s Liszt Ferenc International Airport (Budapest Airport), as the airport’s traffic continues to grow.

Brutal traffic at Budapest Airport

Compared to last year, this holiday season is expected to be even busier. The experts at HungaroControl will handle a total of over 34,300 flights during the Christmas period, which is 1,800 more than last year, Economx reports. The airport’s traffic has already been increasing, and during the two weeks leading up to Christmas, 4,200 takeoffs and landings were recorded, 200 more than in 2022.

Santa Claus at Budapest Airport hungary news
Photo: FB/Budapest Airport

HungaroControl’s CEO, Ferenc Turi, emphasised that the primary goal is to maintain safe and smooth air traffic during the busy holiday period. “In the past months, we have focused on expanding our capacity and are well-prepared for the increased traffic during the holidays,” he said.

A total of 103 air traffic controllers will be on duty in the weeks leading up to Christmas, including 9 newly certified controllers who have obtained their operational licenses. Additionally, two experienced foreign professionals have completed training to manage air traffic in the KFOR sector, while 11 foreign controllers have joined HungaroControl’s team and will soon be managing flights in Kosovo’s upper airspace. The team is also strengthened by three Hungarian professionals who temporarily worked abroad and have now returned to support the domestic air traffic control team.

The holiday season poses a significant challenge for air traffic controllers, but HungaroControl has taken all the necessary steps to ensure smooth operations. Travelers should expect heavy traffic at Liszt Ferenc International Airport during this period but can rely on the preparations in place for safe and efficient air travel.

Memories of Hungary store in the SkyCourt renewed

According to a Facebook post by Budapest Airport, the Memories of Hungary store, located in the SkyCourt at the airport, has been renewed.

“Visit this shop, now infused with modern elements, if you would like to pick up products from authentic Hungarian designers, unique Hungarian specialties or exceptional Hungarian gastronomic delights before your flight. The store is further elevated by the candelabras sourced from the Chain Bridge at the entrance and a digital photo wall showcasing the iconic bridge.

Come and experience the meeting of tradition and innovation at the newly refreshed shop in the Terminal 2.”

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