Business

Shocking Eurostat data shows how property prices skyrocketed in Hungary between 2010 and 2024

Eurostat, the European Union’s official statistics office, shared shocking data about how property prices increased in Hungary under the Orbán cabinets. According to their latest report, rents surged by 108% in Hungary, while property prices more than tripled if we compare the Q3 of 2010 and that of 2024. As a result, Hungary was at the EU’s top concerning housing price increases, which is bad news for Hungarians trying to buy or rent a flat or house.

Property prices skyrocketed in Hungary, just like rents

According to a recent Eurostat report about the changes in house prices and rents in the EU, Hungary is in a devastating position. Property prices more than doubled in Hungary and Estonia rising by 230%, the highest rate in the EU. In the TOP 10 are the two remaining Baltic countries, Lithuania (+181%) and Latvia (+154%) and from the Central and Eastern European region Czechia (+135%), Austria (+114%), and Bulgaria (+110%). In Western and Southern Europe, house prices increased most in Portugal (+113%) and Luxembourg (+103%). Interestingly, the only EU member state where house prices decreased (in general) was Italy (-4%), while the price rise was the lowest in Cyprus, Spain, and Finland.

Shocking Eurostat data shows how property prices skyrocketed in Hungary between 2010 and 2024 — Buying an apartment in Budapest’s downtown is almost impossible with average Hungarian wages. Photo: depositphotos.com

Between Q3 2010 and Q3 2024, rents increased in 26 EU countries. The only exception where you had to pay less for renting an apartment between Q3 2010 and 2024 was Greece (-16%). Meanwhile, rent prices increased the most in Estonia (+216%), Lithuania (+183%), Ireland (+109%) and Hungary (+108%).

Property and rent prices in the EU (Copy) — Source: Eurostat

Average increase in the EU was 54.1% and 26%

“House prices and rents in the EU followed a similar behaviour between 2010 and the second quarter of 2011 but have since evolved differently. While rents have increased steadily, house prices have followed a more variable pattern, combining periods of decline followed by rapid increases. Between 2010 and the third quarter of 2024, house prices in the EU increased by 54.1% and rents by 26%”, Eurostat wrote.

Read also:

Hungary’s property market set for 2025 boom – Expert tips on the best places to invest in THIS article
Currency concerns: Is the EUR/HUF 500 exchange rate approaching in Hungary? – Here’s what the experts say

Featured image: depositphotos.com

January 11, 2025

Will Hungary make Romania Moscow-dependent by gigantic gas deal? Romanian secret services may join the “game”

PM Orbán and PM Ciolacu in Budapest after snowfall Romania gigantic gas deal

The Romanians do not want to buy or even let in Russian gas because they do not want to become dependent on Moscow, Romania’s energy minister, Sebastian Burduja, made his government’s standpoint clear when speaking to Financial Times. Hungarian MVM announced they would buy 68% of German E.ON Energie Romania shares, but it seems the Romanian government will intervene and prevent the transaction due to MVM’s Russian connections. Among others, Hungarian state-owned MVM is the biggest purchaser of Russian gas in Hungary, and they are managing the expansion of the Paks II NPP, built using Russian technology and money. Will MVM’s gigantic gas deal be killed?

Hungarian state-owned MVM’s gigantic gas and electricity deal

After the announcement of the possible acquisition by Hungarian MVM, the Romanian government came under political attacks, which Energy Minister Burduja dismissed by saying that the transaction was incomplete. The Romanian government also issued a new decree that authorised them to reject the deal after a thorough investigation. Burduja promised to conduct such a review on the matter, and, provided they find anything suspicious, block it. To calm citizens, he added that the critical infrastructure was not involved in the transaction.

It seems that MVM wants to close the business ASAP. Based on market information, the cost they offered, allegedly EUR 205 million, for 68% of the Romanian E.ON’s shares, is well over their market price. As a result, local companies like Romgaz, OMV Petrom or Hidroelectrica did not enter the competition. Transtelex added that the MVM purchase had two aims.

First, they would like to get a direct link to Romanian consumers. In the gas market, that would mean supplying 40% of the Romanian customers, while in the electricity market, that rate is 15%. Second, they would like to secure that market for Russian gas. As a result, we can say that the deal is of geopolitical importance for Hungary.

PM Orbán offered to set up a joint committee

The two prime ministers talked about MVM’s possible transaction in Romania when they met in Bucharest last December. Orbán and Ciolacu met two more times last year: in July in Bucharest, and in November in Budapest.

We have no information on what they discussed about the acquisition, but Energy Minister Burduja seems committed to keeping the transaction under his magnifying glass and making it transparent. PM Orbán said the same after meeting with Ciolacu and proposed the setup of a joint committee to oversee the transaction, calm nerves, answer all questions and satisfy additional needs. Burduja told the Financial Times that even Romanian secret services would be involved in the MVM’s risk evaluation process.

Will Hungary make Romania Moscow-dependent by a gigantic gas deal?

Prominent Romanian politicians are concerned due to the possible deal because they believe MVM would supply Russian gas to their Romanian customers, which would make the country dependent on Moscow. Burduja said that a similar investigation baulked the Spanish Talgo acquisition by the Dunakeszi Járműjavító, due to the Hungarian company’s Russian ties.

According to 444.hu, Hungarian state-owned MVM is the biggest Hungarian purchaser of Russian gas, and they manage the Russian expansion of the Paks II NPP, as well. MVM told media outlets that they cooperated with the Romanian authorities but they did not want to make any additional comments on the matter.

Read also:

Romanian PM Ciolacu praises PM Orbán’s efforts concerning Schengen accession
Spain blocks Hungarian Talgo train factory deal over Orbán’s Russia ties

Shocking decline: How Hungary fell behind its neighbours after joining the EU

January 11, 2025

Currency concerns: Is the EUR/HUF 500 exchange rate approaching in Hungary? – Here’s what the experts say

The Hungarian forint continues to grapple with a weak exchange rate, following a turbulent 2024 that saw its value plummet by over 10% against the euro. With global economic shifts and domestic uncertainties in play, analysts warn of further challenges ahead, while holding out hope for potential surprises that could reshape the forint’s trajectory this year.

Forint faces continued pressure

As Pénzcentrum writes, the Hungarian forint faced a challenging 2024, marked by a significant weakening of its exchange rate against major currencies. Starting the year at 382 EUR/HUF, it depreciated to over 412 EUR/HUF by December—a drop exceeding 10% within 12 months. This trend continued into early 2025, with the euro exchange rate rising by an additional two forints on the year’s first trading day, while the forint hit a two-year low against the dollar. Despite these setbacks, economic analysts consulted by Pénzcentrum have provided cautious reassurance. While the 500 EUR/HUF exchange rate seems unlikely this year, they stress the importance of monitoring global political shifts and currency trends closely, as further fluctuations in the exchange rate remain possible.

Global influences and domestic issues

The Hungarian forint faced a turbulent 2024, depreciating significantly against major currencies, with external factors playing a key role. Senior Analyst István Madár from Portfolio highlighted that the exchange rate pressures stemmed from global influences, such as the resilience of the US economy in a high-interest rate environment and Donald Trump’s aggressive trade policies, which are set to bolster the dollar and weaken emerging market currencies like the forint.

Domestic issues, including economic uncertainties, EU funding disputes, and high debt burdens, further compounded the forint’s underperformance, particularly against regional currencies like the Polish zloty. While forecasts suggest the forint may face continued weakening, analysts note that much of the negative outlook is already priced in, raising the potential for positive surprises in the exchange rate, particularly if economic or political conditions improve unexpectedly.

Expert’s prediction

The Hungarian forint’s exchange rate remains a focal point as 2025 unfolds, with Zoltán Árokszállási, Director of MBH’s Centre for Analysis, highlighting key influences. Despite a current account surplus, a meaningful real interest rate of 6.5%, and declining public debt, the forint continues to struggle, with the euro exchange rate exceeding 410 forints early in the year. Factors such as US tariffs impacting Hungarian exports and the Federal Reserve’s interest rate policies, which support a strong dollar, are adding pressure to the forint.

Árokszállási predicts that the forint is unlikely to strengthen significantly, with annual averages expected around 405–415 forints per euro, and a return below 400 deemed improbable. With inflation risks tied to further weakening, Hungary’s central bank is expected to remain cautious, limiting the scope for additional interest rate cuts to stabilise the exchange rate.

Read also:

Featured image: depositphotos.com

January 11, 2025

Russian gas supplies through Ukraine to Europe face sudden halt – Unexpected opportunity for Hungary?

The halt of Russian gas supplies through Ukraine has shaken Europe’s energy landscape, but Hungary’s strategic investments in the Turkish Stream pipeline and interconnectors have positioned it as a key transit hub. With its gas system tripling in value, Hungary could capitalise on this shift if it improves its regulatory environment.

Russian gas supplies face sudden halt

Index reports that Russian gas supplies from Ukraine to Europe have come to a sudden halt, dramatically shaking up the region’s energy dynamics. Hungary, in particular, has seen the value of its gas system triple almost overnight, according to a market insider. This shift follows Gazprom’s announcement on 1 January that it can no longer transport gas through Ukraine due to legal and technical constraints, forcing the pipeline to shut down.

russian gas energy hungary — Illustration: depositphotos.com

Ukraine has said it’s willing to reopen the route, but only if the gas isn’t Russian and payments are postponed until the war ends. Meanwhile, Hungary still gets Russian gas through the Turkish Stream pipeline. The disruption has also uncovered long-hidden financial details, with Ukraine losing USD 800 million (EUR 774 million) a year and Russia taking a massive USD 6 billion (approximately EUR 5.8 billion) hit. Amid this geopolitical turmoil, Hungary finds itself in a position to make the most of this unexpected opportunity.

Tension is rising in Slovakia too

The halt in Russian gas supplies through Ukraine has caused economic turmoil across Europe, with Slovakia losing an estimated USD 600 million (EUR 580 million) annually in transit fees and tensions rising over Slovak Prime Minister Robert Fico’s visit to Moscow, which angered Ukrainian nationalists. While Austria and Slovakia feel the brunt of the contract’s termination, Hungary has shifted to the Turkish Stream pipeline. The EU, once supportive of previous agreements, is now hesitant to back extensions, leaving Europe to consider three options: replacing Russian gas with LNG, sourcing Azeri gas via Ukraine, or negotiating a new agreement between the EU, Ukraine, and Russia.

Hungary still relies on Russian gas

The disruption of Russian gas supplies has escalated risks, with Ukraine seizing the Suzda metering station and concerns that pipelines could become military targets. Despite this, Hungary remains reliant on Russian gas, securing 6.7 billion cubic metres this year through a long-term contract signed in 2021. At the St Petersburg Gas Forum, Foreign Minister Péter Szijjártó emphasised the physical necessity of energy supply over ideology and reiterated Hungary’s commitment to diversifying routes while ensuring competitive pricing.

russian gas, gazprom Szijjártó — Photo: depositphotos.com

Hungary’s unexpected opportunity

Hungary’s strategic role in the transport of Russian gas to Europe has grown significantly following the phasing out of Nord Stream pipelines and the shutdown of the Russian-Ukrainian-Slovak transit. The Turkish Stream pipeline, entering the EU via Hungary’s Serbian border, remains the sole route for Russian gas to Europe. Recent investments in interconnectors, including a Hungarian-Slovenian agreement in 2023, have further enhanced Hungary’s gas infrastructure, tripling its value. Market experts suggest Hungary could become a major gas trading hub if it improves regulatory predictability and reduces trader-deterring fees like the surveillance charge of the MEKH (Hungarian Energy & Utilities Regulatory Agency). With its strengthened position, Hungary has the potential to become a regional leader in the gas market.

Read also:

Featured image: depositphotos.com

January 10, 2025

New Hungarian real estate trend: Slowly shifting to euro pricing?

Foreign-buyers-reappear-in-the-Hungarian-real-estate-market Hungarian real estate market

The Hungarian real estate market is increasingly embracing euro pricing, especially for high-value properties in prime areas like Budapest’s city centre. As the forint weakens, sellers and investors are turning to the euro for stability in transactions.

A growing preference towards euro

As Pénzcentrum reports, The rise of euro-based property ads in Hungarian real estate has been linked to the forint’s weakening exchange rate. Experts, including Zsuzsa Lipták of zenga.hu, note that sellers increasingly favour euro-paying buyers, even when prices are set in forints, particularly in high-value areas like Budapest’s city centre and the Buda Hills. Some developers are now pricing properties exclusively in euros, a trend also seen in sectors like car sales. While the euro isn’t the country’s official currency, its growing use in Hungarian real estate reflects the challenges posed by the forint’s instability.

Spontaneous euroisation Budapest rent prices property market prices exceeded property in hungary renting in Hungary news rental — Photo: depositphotos.com

Pricing properties in euros

In the Hungarian real estate market, the trend of pricing properties in euros is becoming more prominent, particularly for high-value and luxury properties. According to Ferenc Máté, Deputy CEO of Duna House, 3% of current property listings are advertised in euros, with most over EUR 100,000. Due to the forint’s instability, sellers are increasingly favouring buyers willing to pay in euros, even if the original price is set in forints.

While euro-based rentals are more common for luxury apartments in prime areas, such as Budapest’s city centre and Buda Hills, they are less frequent in the wider rental market. This shift highlights the growing preference for the stability of the euro. However, experts suggest it remains more typical for high-end properties, with standard apartments still predominantly priced in forints. The trend also reflects changes in buyer behaviour, with foreign buyers and those in the western regions of Hungary more likely to encounter euro-based transactions.

Rent prices in Budapest reached a psychological barrier Budapest's rental market — Source: depositphotos.com

High-end homes in Budapest

The Hungarian real estate market isn’t showing a strong shift towards euro pricing just yet, according to ELTINGA. Their data highlights that euro pricing is mainly seen in smaller, high-end developments in central locations. The latest Budapest Housing Market Report notes that only six residential projects in the city currently advertise prices in euros or factor in exchange rate changes between the euro and forint. These projects are in sought-after areas of Budapest’s 2, 7, 11, and 12 districts, including Endrődi38 Residence, Limetree Residence, Essence of Gellért, Eötvös12 Villa Park, and Diana Condominium. However, these developments represent just a tiny fraction of the overall new-build housing supply in the city.

What about rentals?

In the Hungarian real estate market, around 15% of rental properties are advertised in euros, while euro pricing is far less common for properties listed for sale, according to Zsuzsa Lipták, managing director of zenga.hu. Among homes for sale in euros, 26% fall between EUR 200,000 and EUR 500,000, while 33% are priced above EUR 500,000—making these two categories 60% of the market. For rentals, 40% are listed at EUR 200–500, with nearly 30% advertised at EUR 1,500 or more.

Investors often calculate in euros, but Hungarian sellers tend to prefer forints, partly due to the complexity of euro transactions and the need for specialised accounts. Some rentals to foreign tenants, paid in euros, remain off the books, contributing to the grey market. The number of euro-priced listings surged in October and November, likely tied to euro exchange rate fluctuations, with high-end properties seeing the most growth.

Read also:

January 10, 2025

Fresh data: Hungarian gas consumption increased slightly last year

Hungary’s gas and electricity consumption remained largely unchanged in 2024, signalling stable energy use despite ongoing challenges. The country’s electricity consumption reached 41.9 terawatt-hours (TWh), marking a modest 2.2% increase from the previous year. Gas consumption rose slightly by 0.8%, or 68.3 million cubic meters, continuing a trend of significant savings compared to pre-energy crisis levels. Notably, Hungary’s gas usage was still about 25% lower than before the crisis.

The Energy Ministry emphasised that these reductions in energy use contribute to increased energy sovereignty and supply security, supporting Hungary’s environmental goals. Household solar panel capacity reached nearly 2,700 MW by the end of 2024, covering around 6.6% of the country’s total electricity needs. On sunny days, this share could rise to about 9%.

Despite the slight increase in consumption, Hungary’s energy savings have led to lower reliance on imports, contributing to stronger energy security. The country’s large gas storage capacity, currently 4.5 billion cubic meters, ensures reliable supply even amid disruptions in regional gas transit.

Looking ahead, Hungary’s government will continue supporting energy efficiency with initiatives such as the home renovation program, set to provide up to HUF 6 million (EUR 14,500) in subsidies starting January 2025. This ongoing commitment helps protect households from volatile international energy prices, keeping Hungary among Europe’s lowest-cost electricity and gas consumers.

Read also:

Featured image: illustration, depositphotos.com

January 10, 2025

Guest workers update: Filipino workers continue to have access to Hungary despite no formal agreement

Despite there being no formal repatriation agreement between Hungary and the Philippines, Filipino guest workers can still be employed in Hungary. This was confirmed in a foreign ministry statement published in the Official Bulletin on Thursday evening.

According to Telex, under Hungary’s new 2024 regulation on guest workers, employees from non-EU countries can be hired, provided that their country of origin has a formal agreement allowing their return in case of expiration of stay or legal violations. However, no such agreement exists between the Philippines and Hungary or the European Union.

The Philippines has long been a significant source of guest workers to the EU, including Hungary, with labour brokers keen to maintain this flow. The regulation provides a provision allowing workers from countries without a repatriation agreement to be employed, as long as their country has a recognised organisation or office in Hungary that guarantees the worker’s repatriation. According to the Ministry of Foreign Affairs, the Philippines is the only country currently on this list, with an established office in Hungary that ensures the return of its workers if necessary.

Read more news concerning guest workers in Hungary HERE.

Read also:

Featured image: depositphotos.com

January 9, 2025

Tipping rules in Hungary change: What to know before dining out

As of January, tipping in Hungary is subject to more favourable tax regulations. The National Tax and Customs Administration (NAV) announced that the scope of tax exemption for tips has been expanded.

From January, tips given not only by customers but also by the operators of hospitality establishments are exempt from taxes, NAV reports. However, to qualify for this exemption, a record must be kept showing who received what amount and when, ensuring all payment details are properly documented. This regulation also applies to tips paid via bank transfer or credit card. According to the NAV, tips paid through these methods will be tax-exempt only if a clear record of the transaction has been created.

Changes to service charge regulations

It is essential to note, however, that a tip is not the same as a service charge, Turizmus.com writes. A tip is voluntarily given by the customer, usually directly to the waiter, as a gesture of appreciation for the service. The recent legal adjustments regarding tips ensure that, regardless of the payment method, waiters will always be able to receive tips tax-free. In a related update, the regulation on service charges has also been modified. The new system introduces a dual cap for service charges: establishments can charge a maximum of 15% for individual consumption and 20% for corporate events.

Read also:

Featured image: illustration, depositphotos.com

January 9, 2025

Early 2025 set to bring sharp price hikes in Hungary: Is your wallet ready?

grocery shopping stores price hikes inflation

Hungary may face substantial price hikes in early 2025, according to the latest inflation report from the Hungarian National Bank (MNB). Companies, grappling with rising costs, are anticipated to implement noticeable price adjustments in January, following months of suppressed consumer price growth.

Companies absorb costs, but for how long?

In recent months, firms have managed to offset climbing expenses by reducing profits rather than hiking prices. According to HVG, import prices have been steadily increasing since May 2024, and industrial production costs have been rising since mid-2023. Yet, consumer prices in sectors like durable goods even dropped slightly—down 0.6% from July to November 2024. This apparent resilience is largely due to intense market competition. Companies in highly competitive industries have prioritised retaining customers over maximising profit margins, keeping price growth minimal. For instance, profits in pasta and preserved flour products surged by 265% and 107%, respectively, between 2022 and 2023. Since May 2024, however, prices in these categories fell by 4.1% and 4.5%. Similarly, telecom companies reduced service fees by 7% in autumn 2024, following a 105% profit boost over two years.

Early 2025: A turning point?

Despite these efforts, the MNB warns that the current trend may not endure. Businesses in the retail and service sectors have revised their price expectations upwards, signalling a shift from the moderate outlook of early 2024. Analysts fear that prolonged cost increases in imports and production could eventually trickle down to consumers. The inflation outlook for 2025 remains uncertain, with forecasts ranging from an optimistic annual average of 3.3% to a pessimistic 4.1%. Experts agree that inflation will likely peak in the year’s first few months before stabilising later. The degree of January price hikes by companies will play a pivotal role in determining whether the current slowdown in profit-driven inflation becomes permanent.

Price hikes: Why monitoring prices matters

The MNB urges consumers to closely monitor early 2025 price changes, as these will offer critical insights into the trajectory of Hungary’s inflationary trends. While recent price drops in some sectors have provided relief, sustained cost increases could soon create a ripple effect across the economy. The stakes are high as the nation braces for the economic challenges of the new year, with household budgets likely to feel the pressure.

Read also:

Featured image: depositphotos.com

January 9, 2025

Green oasis in Budapest: Huge office building under construction

The Skanska development company has embarked on the second phase of its H2Offices project in Budapest’s bustling Váci Road office corridor. Following the success of the first phase, completed in 2022, this ambitious expansion aims to redefine urban office spaces with cutting-edge sustainability and innovative design.

The eight-story building will offer over 22,000 square meters of premium office space, featuring state-of-the-art technology and eco-friendly solutions, BDPST24.hu writes. A centrepiece of this phase is a landscaped courtyard with native plant species, complemented by an artificial lake. The design fosters a connection with nature, creating a serene environment for workers and visitors alike.

According to Aurelia Luca, Executive Vice President for Skanska’s commercial development in Hungary and Romania, the project reflects a steadfast commitment to sustainability. “With this phase, we aim to elevate our standards further, striving to build Hungary’s first carbon-neutral office complex,” Aurelia said. The construction will utilise low-carbon materials like concrete, steel, and glass while employing four-season heat pumps and rooftop solar panels for energy efficiency.

Strategically located near a major public transport hub and just minutes from Budapest’s city centre, H2Offices offers unparalleled accessibility. Its proximity to green spaces and urban amenities enhances its appeal to tenants like Albemarle, Cofidis, and MBH Gondoskodás Egészségpénztár (MBH Care Health Fund), already occupying the first phase.

h2offices building budapest2 — Photo: H2Offices/Skanska

Beyond office spaces, the project includes a 3,600-square-meter public park—equivalent to the area of three Olympic swimming pools—accessible to all city residents. Additionally, the Angyalföldi Road will be revitalised with wider sidewalks, expanded green areas, and new parking facilities, integrating the development seamlessly into the community.

Designed by Danish Arrow Architects, the H2Offices complex also targets multiple certifications, including LEED Platinum and WELL Platinum, to underscore its environmental and tenant-focused approach. Completion of the second phase is anticipated in early 2027, marking another milestone in Budapest’s journey toward sustainable urban development.

Read also:

January 9, 2025

Skyrocketing fuel prices in Hungary: Among the most expensive in the region – again

Hungarian drivers have been hit with another wave of fuel price hikes as the new year begins. Both petrol and diesel prices have surged significantly, with 95-octane petrol reaching an average of HUF 631 (EUR 1.52) per litre and diesel climbing to HUF 651 (EUR 1.57). Compared to a year ago, these prices reflect a 12% and 9% increase, respectively, while even within the past week, prices have risen by over 2%.

According to 444.hu, the price surge is attributed to a combination of factors, including a sharp increase in excise taxes and the weakening of the Hungarian forint against the US dollar, which has reached a two-year low.

Regional comparison highlights the price disparity

A report by Holtankoljak.hu underscores Hungary’s prominent position in the region for high fuel costs. For diesel, Hungary is second only to Serbia in terms of expense. Regarding petrol, Hungary ranks third, trailing only Serbia and Slovakia, in a tight competition with Austria and Croatia. The dramatic rise in prices places Hungary among the most expensive countries for refuelling in Central Europe, a stark contrast to neighbouring countries where fuel prices remain comparatively lower.

A lack of updated official data

444.hu’s fuel price comparisons rely on data from Holtankoljak.hu due to the absence of fresh updates from Hungary’s Central Statistical Office (KSH). Its experimental fuel price comparison project, launched last spring, has not been updated since April 2024. With fuel costs straining household budgets and business operations, Hungary’s drivers face the unfortunate reality of some of the highest prices in the region—a situation exacerbated by economic challenges and government policies.

Related articles:

Featured image: depositphotos.com

January 8, 2025

Success: Hungary records lowest December jobseeker numbers in over 3 decades

According to data from the National Employment Service (Nemzeti Foglalkoztatási Szolgálat, NFSZ), in December 2024, only 220,800 people were listed in the job seeker register, representing a decrease of more than 4,000 compared to the same period of the previous year. The number of job seekers also fell by more than 4,000 compared to the preceding month. This was highlighted in a statement issued on Wednesday by Sándor Czomba.

The State Secretary for Employment Policy at the Ministry of National Economy (Nemzetgazdasági Minisztérium, NGM) emphasised that the improvement of the Hungarian labour market is reinforced by the increased economic activity of the 15-64 age group and the growing willingness to work among retirees. These factors collectively contribute to more Hungarians joining the labour market, which has expanded by 1 million people since 2010. The December figure was the lowest for the month in more than three decades, Sándor Czomba said.

The government continues to prioritise supporting job seekers. The Youth Guarantee Plus (Ifjúsági garancia plusz) programme assists individuals under 30, while another EU-funded project provides support for job seekers over 30. Both initiatives aim to facilitate employment through wage subsidies, housing, and travel reimbursements. With the help of these programmes, around 27,000 job seekers have already found employment in the labour market, the State Secretary stressed.

The government is working to ensure families have higher incomes. As part of the 21-measure New Economic Policy Action Plan (Új gazdaságpolitikai akcióterv), a three-year wage agreement has been established, which will increase the minimum wage by 40% by 2027: this year by 9% to HUF 290,800 (EUR 700), in 2026 by 13% to HUF 328,600 (EUR 791), and in 2027 by 14% to HUF 374,600 (EUR 902). To support employers paying minimum wages, the government will allow them to “defer” the payment of the increased social contribution tax. In 2025, they will pay the 2024 rate; in 2026, the 2025 rate; and in 2027, the 2026 rate. The State Secretary reminded the public of this adjustment.

Read also:

January 8, 2025

Hungary Airlines takes flight: New national carrier obtains licences

Hungary Airlines, a newly established national airline, has officially launched operations following the issuance of its Air Operator Certificate (AOC). The airline, tasked with managing a state-owned Airbus A330-200F freighter, began test flights in December 2024 and completed additional practice flights in early January 2025.

The A330-200F, a 2014-vintage aircraft previously operated by Qatar Airways, was in service with low-cost carrier Wizz Air until late November 2024, Cargo Facts reported. The freighter recently conducted maintenance in Shanghai and is now preparing to resume cargo flights between Hungary and China, Világgazdaság wrote.

A strategic shift in air cargo operations

According to AIRportal.hu, Hungary Airlines was founded in 2021 as Universal Translink Airline Hungary (UTA) and later rebranded in April 2024. The company has been instrumental in air cargo operations between China and Hungary, with a base at Budapest Airport’s Cargo City. In addition to the A330 freighter, the airline uses leased aircraft to support its growing logistics network. The majority owner of Hungary Airlines is Wu Jiang, a Chinese businessman who resides in Hungary. Wu holds over 50% of the company’s shares. Other stakeholders include Beijing-based UTL Digital Logistics Co. Ltd. and the Hungarian state-owned Air Hungary Szolgáltató Plc., which became a minority shareholder in November 2024.

Leadership and future ambitions

Hungary Airlines is led by a team of experienced professionals, including Wu Jiang, co-founder Duan Bo, and Hungarian aviation experts Gábor Talabos and Gábor Varga. The addition of Borbély Tibor Péter, chairman of Air Hungary, to the management team, highlights the airline’s close ties to the government. In late 2024, Hungary Airlines made headlines when its president, Duan Bo, signed a memorandum of understanding with Boeing to acquire 737 MAX passenger aircraft. While details remain scarce, this move signals the company’s ambitions to expand beyond cargo operations.

Strengthening Hungary-China connectivity

As Hungary’s national carrier, Hungary Airlines aims to bolster trade and transportation links between Europe and Asia. With its strategic location and state-of-the-art fleet, the airline is poised to play a key role in strengthening Hungary’s position as a logistics hub in the region. With its inaugural flights now underway, Hungary Airlines marks a new chapter in the nation’s aviation history.

Related articles:

Featured image: illustration, depositphotos.com

January 8, 2025

Socialists slam ‘underhand’ Vodafone sale over EUR 31.3M loss

Vodafone Hungary service provider telecom

The Socialist Party is filing a complaint to the authorities in connection with the “underhand” sale of Vodafone to a state-owned fund which “recorded a loss of around 13 billion forints [EUR 31.3m]” during the sale of the telecommunications company in the period of less than a year, and the opposition alleges that the state exchanged high-value shares for ones of lower value in opaque transactions that produced losses seriously detrimental to national interests.

The state ploughed billions of forints of public funds into telecommunications and IT company 4iG, the majority owner of Antenna Hungaria, to bolster its market position, thereby squandering 13 billion forints of public assets in order to give a private company a competitive advantage, the Socialists said in a statement on Tuesday. The statement said the transactions raised suspicion of mismanagement and negligence, adding that it was justified for the authorities to launch an investigation.

The statement said on January 31, 2023, the state fund in question, Corvinus, purchased a 49 percent stake in Vodafone Hungary for 323.4 billion forints. Later, it added that 19.5 percent of shares were exchanged for 128.7 billion forints. Two days later, Corvinus exchanged the 19.5 percent Vodafone shares in other telecommunication companies, Yettel and Cetin, during which the value of Vodafone shares was set at 125.7 billion forints, 3 billion forints less than two days earlier. Then, in December 2023, the statement added that Corvinus sold its Yettel and Cetin shares for 115.8 billion forints, recording a further loss of 9.9 billion forints.

One Hungary instead of Vodafone

As we wrote yesterday, listed ICT company 4iG rebranded the commercial telecommunications services of its units Vodafone Magyarorszag, DIGI, Antenna Hungaria and Invitech under the One aegis from January 1. Read details HERE: Vodafone is gone! Acquirer One Hungary opens flagship store in Budapest.

Also, it’s interesting that Vodafone received a gigantic fine from Hungarian authorities before the transaction; details are HERE.

January 7, 2025

Grim data: Hungary among EU’s lowest in household material welfare

Budapest Hungary people citizen street competitiveness eu

Recent data from Eurostat highlights stark disparities in household material welfare across Europe, with Hungary ranking at the bottom alongside Bulgaria. The study uses Actual Individual Consumption (AIC) per capita, expressed in Purchasing Power Standards (PPS), to measure material well-being. This indicator accounts for all goods and services consumed by households, whether paid for directly or provided by governments and nonprofits.

Hungary’s position in the EU

According to Euronews’ reports, in 2023, Hungary’s AIC per capita was just 70% of the EU average, a figure it shares with Bulgaria, marking the lowest levels among member states. In contrast, Luxembourg led the EU with an AIC per capita of 136%, or 36% above the EU average. Neighbouring countries like Slovakia and Croatia also recorded below-average material welfare, but Hungary’s standing underscores the persistent economic challenges faced by Central and Eastern European nations.

Regional trends and comparisons

While nine EU countries—including Germany, Austria, and the Netherlands—exceeded the EU average for household material welfare, Hungary continues to trail significantly. Notably, countries like Poland (83%), Czechia (81%), and Greece (80%) outperformed Hungary in this measure. Among non-EU countries, Türkiye achieved an AIC per capita of 84% of the EU average, surpassing Hungary and eight other member states. This highlights the growing economic divergence between EU and candidate countries, with Türkiye standing as an exception due to its relatively high material welfare.

Changes over time

Over the last five years, Hungary’s AIC per capita saw slight improvements, climbing from 62% in 2020 to 70% in 2023. This modest growth aligns with trends in other lower-ranking EU nations, such as Bulgaria, but contrasts with declines in wealthier member states like Denmark and Finland.

Insights on material welfare

“A household’s material well-being can be expressed in terms of its access to goods and services”, Eurostat writes. Hungary’s position at the bottom of the EU rankings highlights larger regional disparities in living standards. While Western and Nordic countries consistently report higher material welfare, Central and Eastern European nations, including Hungary, struggle to close the gap. These differences emphasise the challenges in achieving economic parity across the bloc. As Hungary continues to negotiate economic pressures, the AIC per capita data serves as a stark reminder of the ongoing need for targeted policies to improve household material welfare.

Read also:

Featured image: depositphotos.com

January 7, 2025

New economic policy action plan unleashes €10 billion through 21 measures in Hungary

The government is offering a new alliance to families and businesses with its new economic policy action plan, National Economy Minister Márton Nagy said in a video message on Facebook on Tuesday.

Nagy noted that the action plan was mobilising HUF 4,000bn (EUR 9.63bn), including HUF 2,600bn for families and HUF 1,400 for SMEs.

The action plan includes measures doubling the tax allowance for families raising children, increasing the minimum wage and launching subsidised credit for young blue collar workers, as well as steps to ensure affordable housing, he said. Support for business investments and digitalisation comes in the form of credit, capital and grants in the framework of the Demján Sándor Programme to scale up SMEs, he added.

Applications for young workers’ credit being accepted

Applications for state-subsidised loans for young blue collar workers are now being accepted, a spokesman for the National Economy Ministry said on Facebook on Tuesday. Andre Palóc noted that the zero-interest credit was available to working Hungarians under the age of 25 ineligible for student loans. Borrowers, who may take out up to HUF 4m, can get two-year grace periods on repayments after the births of their first and second child, and the principal is forgiven after the birth of a third child.

January 7, 2025

Watchdog NBH fines Hungary’s two biggest banks for insufficient remedial measures

The National Bank of Hungary (NBH) has fined OTP Bank and MBH Bank, the country’s two biggest commercial lenders, more than HUF 43m (EUR 103,440) for failing to take all required steps to correct shortfalls regarding the prevention of money laundering and financing of terrorism, the central bank and financial market regulator said on Tuesday.

The NBH had instructed the lenders earlier to take remedial measures because of the regulatory shortfalls. Due to the deficiencies found, the supervisory authority imposed a total of HUF 15 million on MBH Bank and HUF 28.125 million on OTP Bank, and ordered them to correct the deficiencies. The deficiencies do not jeopardise the safe operation of credit institutions, the central bank said.

The MNB found that OTP Bank continued to fail to fully comply with retrospective screening and proper monitoring in its electronic money issuance activities for one product, while the methodology adopted by the bank did not comply with the risk-based approach.
Due to the incorrect setting of the filtering system, OTP Bank’s internal audit did not take into account the reports on trends and risks prepared by its AML/CFT unit when examining the filtering system scenarios, their modifications and the threshold settings, they wrote.

The bank continued to fail to adequately verify information on the source of funds in its customer due diligence for customers subject to the enhanced procedure who had previously been subject to money laundering notifications and whose cash payments were equal to or exceeded HUF 10 million. As OTP Bank did not comply or did not comply adequately with several of the requirements of the Decision, some of the related internal controls required by the Decision could not be properly implemented.

The investigation revealed that, despite the obligation, MBH Bank still did not provide in its internal rules on screening for specific processing rules for alerts generated on the accounts of fiduciary clients and the sub-accounts used to record the assets managed by them, nor did it ensure that alerts based on the same risk basis were treated in the same way, due to a lack of adequate controls.

Furthermore, despite the previous obligation, it did not employ sufficient staff to guarantee the analysis and evaluation of the transactions filtered when processing the alerts generated by the filtering system within the time limits laid down by the legislation.
In addition, MBH Bank did not establish adequate policies and practices for obtaining information and documentation on the source of funds by the previously established deadline,” they wrote.

January 7, 2025

Orbán cabinet defends utility price cap amid gas price hike, strongly criticises EU and Ukraine

The government is protecting utility price reductions even after the 20 percent rise in gas prices in Europe on the back of Ukraine’s decision cease gas deliveries from Russia, the minister of foreign affairs and trade said on Tuesday.

“By now even the most fanatic Brusselites don’t contest that the European Union’s competitiveness had deteriorated sharply,” Péter Szijjártó said on Facebook. Gas prices, which are now higher in Europe than in most competing countries, are one of the main reasons for this, he added.

“At the same time, European natural gas prices have increased mostly due to measures that deliberately cut the amount of gas delivered, such as sanctions or other political steps to cut out certain resources or the closing of certain delivery routes,” he said. “Europeans are clearly the ones most harmed by those measures.”

Meanwhile, Hungary made an effort to diversify its delivery routes in recent years, Szijjártó said, adding that this ensured the security of energy supplies, “even if we do feel the impact of rising European prices”. Since the decision to scrap the transit route leading through Ukraine to central and eastern Europe in mid-December, the price of gas in European markets has jumped by 20 percent, he added.

“Ukraine’s decision has again put the European economy in a difficult situation, even though the country is a candidate for accession,” he added.

Szijjártó said that since Ukraine’s move had been especially harmful to central Europe, he had discussed the situation with Slovak counterpart Juraj Blanar. “We were in agreement that the EU-Ukraine Association Agreement should be honoured by both parties, and that the pact also has provisions on keeping up energy delivery routes.”

Szijjártó said that during the debates surrounding the construction of the TurkStream pipeline a few years ago, “we were threatened by our allies, who tried to dissuade us from the investment in a friendly way,” he said. Landlocked Hungary would now be in a tight spot had it not withstood the “friendly” pressure then, Szijjártó said. He said that under the current circumstances, Hungary’s energy supply was secure. At the same time, he said that Ukraine’s decision to turn off the gas taps had led to higher prices, posing yet another challenge to the competitiveness of central Europe and the EU.

“Still, Hungary will continue to protect the achievements of its utility price caps, even in this challenging environment, and we will continue the cooperation with our partners in the region,” he said. As we wrote earlier, breaking the myth, Russian gas costs Hungary more than alternatives.

January 7, 2025