Shops turn to Brussels over Hungarian price freeze
Lidl, Tesco and several foreign supermarket chains in Hungary feel that the Hungarian government’s measures take a serious toll on their businesses. They reckon this is due to “the deliberate exclusion of certain businesses from the market”. The chains are appealing to Brussels for justice.
Foreign shops facing problems
Numerous large foreign-backed retail chains in Hungary complain that “it is simply impossible to operate profitably in a sustainable way under the conditions imposed by the Hungarian government”. The Hungarian government’s food price freeze is “contrary to the principles of the EU internal market”.
German-backed Aldi and Lidl, Penny Market, French Auchan, Dutch Spar and British Tesco also expressed their discontent. According to politico.eu, an anonymous spokesman called on the European Commission to intervene.
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The price cap is not the only issue
Portfolio.hu contacted the foreign retailers concerned, but none of their managers wanted to be named. The big foreign players in the retail sector are not the only ones affected by the price freeze. There are two laws that do not affect franchised chains with a domestic background.
Last December, the Hungarian government voted in favour of a parliamentary decision to require chains with an annual turnover of more than HUF 100 billion (EUR 24,664,832.56) to supply food 48 hours before the expiry date without compensation. In the spring, Fidesz increased the special tax rate for these companies, citing crisis management.
Former government commissioner JĂ¡nos LĂ¡zĂ¡r said that the aim is to squeeze out foreign retail chains. Economic Development Minister MĂ¡rton Nagy also voiced his opinion that domestic ownership in food retailing should be increased.
According to Politico, if the European Commission were to intervene in Hungary, it could be seen as the EU bureaucracy siding with retailers in a difficult time. People are struggling to make a living, and the Hungarian government is blaming Brussels for many of the country’s other problems.
Read alsoEgg and potato shortage in shops, unaffordable prices in the markets
Source: politico.ez, portfolio.hu
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7 Comments
The “Explosion” continues.
Late October early November – Germany prices in the Markets and Supermarkets noticeably up from April, staying in same City as we do twice yearly for (2) two weeks, but NOT to the HUMONGOUS Increases we are being subjected to in Budapest, Hungary.
Hungary – something is MASSIVELY wrong.
Can’t help but consider overall we are – as Citizens being EXPLOTED.
Millions of US – are literally SUFFERING which is to a large degree hinging on being quite an un-humanitarian disposition of society we are FACTUALLY witnessing.
It is NOT going to END to-morrow – SADLY.
Our Politicians will never admit to their failures. Good thing they have this “rule-by-decree” business where they can bypass democratic scrutiny and debate, as well as enact measures that make them look good for the People – passing the buck to others. That – and blatant misinformation as to the real causes of all of this.
https://economy-finance.ec.europa.eu/economic-surveillance-eu-economies/hungary/economic-forecast-hungary_en
Funny one for the supermarkets: “Current expenditure is set to grow rapidly, especially in 2022 and 2023, driven by high inflation and expenditure on the utility bill protection scheme that SUBSIDIZES [my cap] utility companies for the losses incurred due to caps on residential energy prices.”.
At least they know where the money is going, because “Capital expenditure is set to moderate over the forecast horizon due to the postponement of public investment projects” – which will not impress the Politician’s toadies.
It’s happening everywhere.
Thank putler for this.
Norbert – excellent summary of FACT.
Reality – correct, but Hungary – its INCENDIARY.
Politicians – we just witness continuous, just part of the DNA of being a Politician, that they don’t have an UNDERSTANDING of situations, but to be seen – taking a “proactive” position, undergoing far too often – Quick fix processes, that just ADD to the PROBLEMS they are FACED with – and are appointed – as the representatives of the people as Politicians to – Correct.
SATURATED – in Hungary are individuals who truly are – “Square Pegs in Round Holes.”
The added additional DANGER to this failing of competency, is they become such LEMMINGS to the Party policies and line, at the time, the rhetoric or CREED of a Party, and grow in the “veiling” of them-selves – protecting hiding them-selves – under cover – “smothered” under the Rule of the Party.
It’s not ALL that difficult – to WORK out the Doers and the Pretenders – in the game of Politics.
Hungary – the composition in the present Government, compounding ALL the failings of being a Politician, is that the Fidesz Party – drive & seek POWER in their appointments – which adds further to the vast degree of ministerial incompetence that FACTUALLY exists within this present Orban led “dictatorial” Government of Hungary.
There does NOT exist in this Orban led Government of Hungary “dictatorial” in its functionality and processes of Government, the PRACTICE – the “embracing” – that Democracy is DIALOGUE.
The LEGACY of Politicians – interesting, and those that I have studied and evaluated over decades, there are greater numbers of x’s on pages than TICKS- or Achievers.
Saint Teresa of Calcutta – Mother Teresa, was asked in her earthly life about change – making changes, having an influence in what – in her case dealing and caring for the Poor & Needy, improvement in life quality to millions, that her life – borne witness to her seeing her caring, nursing and un-conditional Love.
Saint Teresa answered:
” It’s like standing by a pond and throwing pedals that can at times continuously ripple across the water.
My life is likened to the ripple effect, that I can make or cause some ripples along the way, but I can’t change the world.”
We know the LEGACY of Saint Teresa of Calcutta.
Victor Orban – what will be his Legacy to Hungary?
I visit Hungary alot because of my girlfriend lives there. I must say that the prices here in Hungary are extremely expensive for those who are poor in the region.
How can they survive when the wages are very poor here.
I think the Hungarian government must look into this situation.
people will suffer and why should they suffer after all.
In Britain we have similar things happening there but the wages are much higher.
The food prices must come down in Hungary…
Best wishes.
Wayne.
Spot on Wayne.
The massively lower wages in Hungary – compared to the wage level(s) in the UK – HORRENDOUS variation.
The LOWER socio-economic group in millions in Hungary at this point in time are just getting SMASHED with the cost-of-living explosion – that factually is OCCURING.
Inflation in Hungary – continues to motor along at 40% and accelerating.
MASSIVE – Social Inequality & Social Equality in Hungary are DEEPENING in the population statistically of this country of just 9.6 and ageing Population.
Greater % of deaths in Hungary than newborn babies – a trend over 8 plus years.
Hungary’s – Economic & Financial STRANGULATED position, no funding from the European Union, and “light years” from if ever again it will be received, due to the MAGNITUDE of Matters, surrounding Hungary’s abuse of its Membership as a country of the European Union.
Message I continue to “put out there” to the Citizens of Hungary is:
“When the YOKE is Broken,
the BURDEN is REMOVED.”
Hungary has to IMMEDIATLY make a choice.
The European Union officially have informed Hungary one of the reasons why there is NO funding, is that the European Union believe that Hungary under its present Government led by Prime Minister – Victor Orban – the conduct of its Governance no longer is DEMOCRATIC but that of a Dictatorial process.
The CHOICE – further unite with its closest friends Russia and China – both Dictatorships.
or – through SOLIDARITY of the PEOPLE – move with RAPIDNESS to ensure a retainment of DEMOCRACY is returned to be the CORE of the Political position and practice in Hungary.
Spot on Wayne. Simple price comparison for the same object. A deodorant stick, £1 Asda, £2 Morrisons, here in Tesco, equivalent of £3.89, over 1,800 HUF. Exactly the same deodorant. Pretty soon people won’t be able to afford personal hygiene items. There’s no dignity in that.
If the government wants to help then cut VAT. So much rhetoric on how much better we’re doing than other other countries, how well the government is looking after its citizens, how much the economy is ‘expected’ to grow. And yet they waste money on a useless national consultation that’s not worth the paper it’s written on.
It’s actually nothing more than smoke and mirrors here.