Europe

Hungary to become world great power in the electric car industry

bmw electric car

According to Financial Times, Hungary could become a major centre for the electric car industry in the region. The newspaper published a lengthy article on the steps Hungary has taken to become a centre for electric car production. They predict that Europe’s second largest centre could be established here in the future.

Large battery manufacturers are investing in Debrecen

The Financial Times recalled that earlier CATL, one of the largest Chinese battery manufacturers, announced Hungary’s largest investment in Debrecen. Meanwhile, the South Korean company EcoPro BM is setting up another factory almost next door.

According to the newspaper, with this development Hungary is creating a major centre in its second largest city. The Financial Times wrote that by 2030, Debrecen alone will produce more batteries than any other country in Europe combined, except Germany.

Will the production of electric cars also move to Hungary?

In addition, according to the paper, Hungary is also laying the foundations for the production of electric cars to move to the country. They recalled that after the CATL announcement, BMW also announced an investment of several billion euros in Debrecen related to the production of electric cars. Several other companies with interests in this field have also done the same (more than EUR 10 billion in total, according to the Financial Times). BMW has since announced a new expansion in connection with its own investment, which Péter Szijjártó, Minister of Foreign Affairs and Trade, spoke about last week.

By 2035, Hungary’s electric car production will be huge

The Financial Times also recalled that Samsung is also setting up major battery factories in Hungary. On top of that, Mercedes and Audi are preparing to convert their Hungarian plants to electric car production. 2035 will be the year when it is planned to ban the sale of conventional cars in the European Union. According to the paper, by that time, the Hungarian car industry will be able to produce only electric vehicles.

The Financial Times has also published a forecast. They showed what the volume of production could be once the developments are completed. Based on this, it can be expected that Hungary will be the second largest power in Europe by 2031.

Billions of euros
Read alsoFinal decision: the EU unlocks billions of euros for Hungary! – UPDATED

Orbán’s political director: Using EU money for political purposes is wrong

money euro

It is wrong to use European Union financial instruments for political purposes, Balázs Orbán, the prime minister’s political director, told Zoltán Kovács, the state secretary for international communications and relations, in The Bold Truth about Hungary podcast on Monday.

Kovács said Hungary had concluded talks with the European Commission about the recovery fund in a positive manner, but recent reports suggest that decisions were being postponed. Orbán said the “leftist transnational political ideology has kidnapped European integration” and “European institutions are not using their legal neutral power to keep together the European integration but they want to push forward a political agenda.”

He said it was the same situation in the European Parliament, the European Commission and the Court of Justice of the European Union, each of which should be neutral, in line with the treaties.

To listen to the full podcast in English, please visit THIS page.

Máté Kanász-Nagy
Read alsoHungarian greens: protest against amendment proposal to social services law

FM: Hungary supports cooperation with non-EU countries but opposes migration

Szijjártó Turc

Hungary supports close cooperation between the European Union and countries outside Europe but says a clear “no” to migration, Foreign Minister Péter Szijjártó said on Tuesday after talks with Jutta Urpilainen, the European Commissioner for International Partnerships.

The geopolitical crisis has weakened the EU on the global stage, so it is important for the bloc to boost its external partnerships and relations, Szijjártó said in a post on Facebook.

Hungary supports close cooperation between the EU and “the world outside Europe”, but such partnerships must be beneficial for all member states, the minister said. He noted that the EU cooperates with 79 African, Caribbean and Pacific countries within the framework of the Post-Cotonou Agreement.

Hungary, of course, backs cooperation when it comes to trade and developments, Szijjártó said, noting that the country had “one of the world’s most open economies” and that its achievements in foreign trade were a fundamental factor in its economic performance.

He added, however, that Hungary disagreed with the EU “using the Post-Cotonou Agreement to legalise migration, undermine the fight against illegal migration and spread gender ideology”. Hungary’s parliament made a clear decision last December when it mandated the government to thwart the approval of the Post-Cotonou Agreement, Szijjártó said. “The direction is clear: yes to economic cooperation, no to migration,” he added.

Read alsoCrude oil deliveries to Hungary stop due to bombing – UPDATE

MEP Gyöngyösi: Growing tensions in the Caucasus – What will Europe do?

European Union

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MEP Márton Gyöngyösi’s (Non-attached) thoughts via press release:

In the next few weeks, the European Parliament’s Committee on Foreign Affairs (AFET) is going to discuss the issue of Azerbaijan and Armenia, the two Caucasian countries that have long been at war with each other. After the fiasco last time, can Europe become a real factor in the skirmish going on right in its neighbourhood?

Azerbaijan’s 2020 campaign to take back its own territory ended with a knock-out victory: the separatist Armenian quasi state of Nagorno Karabakh lost half of the region along with the total adjacent area that had been under its control. Back then, many of us criticized the European Union for its inability to act as a power player in the conflict. Eventually, the peace treaty was forced on the two parties by Moscow, exactly as Russia saw fit.

Since then, the power imbalance between the Armenian and the Azeri side has grown even more.

Weakened by the war and troubled by tense relations with nearly all of its neighbours, Armenia has been experiencing political unrest while Russia, its traditional supporter, is no longer able and willing to back Yerevan. The lack of willingness is largely due to Armenian Prime Minister Nikol Pashinyan’s political attempts to feel his way toward the West, whereas the lack of ability can be put down to Moscow being fully occupied with the Ukraine war situation.

In the meantime, Azerbaijan took back a significant part of its territories and Baku profits from Russia’s diminishing influence in from the military, economic and political aspects as well: Russia pays less and less attention to the Caucasus, which certainly benefits Azerbaijan in the military sense, while Baku’s gas and oil is increasingly promoted in Europe as an alternative to the Russian energy supply, which is a very positive development for Azerbaijan politically and economically.

Energy diversification is undoubtedly vital for Europe at this point, and Azerbaijan may be a key partner in that regard.

On the other hand, I believe we mustn’t make the mistake of failing to back up our economic initiatives with political power. Any future agreements with Azerbaijan can help us to influence the situation of the region.

I am not naive, I don’t expect Azerbaijan to become a European model state overnight, but we are rightfully expected to be consistent in our requirements: if we reject Moscow as a partner on account of its failure to respect basic international norms and human rights, we should hold Baku to the same standards. As a matter of fact, Azerbaijan still has a long way to go in terms of guaranteeing political rights for its citizens as well as respecting the collective rights and cultural legacy of the Armenian minority living in the recently repossessed territory.

There are several reasons why we must do this, but first and foremost, regardless how much larger and stronger Azerbaijan is than its neighbour, it is our moral duty to offer a perspective to the Christian Armenia that is culturally tied to Europe.

Secondly, it is also a test of Europe’s credibility, because the international community wants to see if we help a country that is trying to break free from Russian dependency and looking to choose western orientation.

The situation is challenging, but it is also an opportunity for Europe to finally show a firm and consistent stance and become a key player in a region that has been dominated by Turkey and the Russian empires for centuries.

Disclaimer: the sole liability for the opinions stated rests with the author(s). These opinions do not necessarily reflect the official position of the European Parliament.

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Read alsoMEP Gyöngyösi: Any sanction that can be bypassed is no sanction

Hungary aims to become defence industry hub in Central Europe, defence minister says

Szalay-Bobrovniczky minister hungary defence

The government aims to make Hungary central Europe’s top defence industry hub for production and Research and Development (R and D), according to a defence ministry statement.

On Saturday, Defence Minister Kristof Szalay-Bobrovniczky visited the state-of-the-art vehicle test track in Zalaegerszeg alongside the minister of technology and industry, László Palkovics, and the minister of culture and innovation, János Csák.

Palkovics called the test track one of the world’s fastest developing innovation ecosystems. As well as providing a research backbone for Hungary’s car industry, the test track is now being used by universities, too, while two multinationals are building their own research centres at the site. Further, German defence contractor Rheinmetall is building its new factory here, the minister noted.

Speaking in front of the site where Rheinmetall is building its factory, Szalay-Bobrovniczky said the knowledge and technology at the Zalazone were central to the development of Hungary’s armed forces.

Csák said the Zalaegerszeg site had become a hub where universities, private companies, state developers and research institutes can work together. The results of innovation and research provide a springboard for the creation and development of Hungarian companies that can then enter the international market and also grow their role in supplying the domestic car industry and other industries, he added.

Hungarian foreign minister Péter Szijjártó
Read also Hungarian minister shared the only way Ukraine could be helped

Inflation in Hungary in 2023: the highest in Europe

food store spar inflation price hungary (2)

Hungary is becoming the European inflation champion. According to analysts’ forecasts, prices will rise by an annual average of 14 percent this year, and inflation could reach 16 percent next year.

The latter will be by far the highest price index in the EU. It will also be the highest on the continent, meaning that even Russia will manage with lower inflation (13 percent) in 2023, according to Kopint-Tárki’s continent-wide inflation forecast, Népszava reports. One exception will be Turkey. The country has been struggling with extra-high inflation for months. There, prices could rise by 54 percent next year after 63 percent this year.

In recent months, the 12-month price indices have been at the centre of the public debate, as the accelerating price rises from month to month are most visible in this indicator. According to KSH (Central Statistical Office) data, the 12-month price increase reached 20.1 percent in September. Analysts expect it to rise to close to 22 percent by December, which would bring this year’s annual average inflation to 14 percent.

While the price index has been rising steadily this year, inflation will start from a high of 22-23 percent in 2023. Then, it will fall below 20 percent by mid-year and could even fall below 10 percent in September, after the August 2022 energy price increase is taken out of base. By the end of the year, all moderate forecasts suggest that the pace of monetary deterioration could slow to 6-8 percent in Hungary. This imply an average annual inflation of 14-16 percent.

Népszava writes that while governments in Europe and around the world have allowed energy prices to quickly pass through to consumers, forcing people to save and adapt, here in Hungary the cabinet has left the utility cuts in effect until the last minute, and only took action from August this year. This is one of the reasons why inflation will slow down almost simultaneously in European countries next year, while the annual price index will still rise in Hungary.

This year, annual inflation in the three Baltic countries will be even higher than in Hungary, which will prevent Hungary from even getting into the top three. However, Latvia, Estonia and Lithuania will already start to experience strong disinflation next year, which will put Hungary in the lead according to current forecasts.

PM Orbán and Putin Russian gas
Read alsoEnd of Putin-Orbán friendship? Russian gas very expensive for Hungary

Hungarian politician: EP vice-president’s behaviour “poisoning European cooperation”

tamás deutsch fidesz brussels

The “extremist behaviour” exhibited by Katarina Barley, the Socialist vice-president of the European Parliament, is “poisoning European cooperation and undermining the authority of the European Parliament”, an MEP of Hungary’s ruling Fidesz said in a letter to EP President Roberta Metsola on Thursday.

Tamás Deutsch, the head of Fidesz’s EP delegation, insisted that Barley’s latest “communication rampage” against Hungary “must not be allowed to go unchallenged”.

Fidesz-MEP-Balázs-Hidvéghi
Read also Fidesz: Socialists, Liberals try to hunt down Hungary

In his letter, the MEP protested Barley’s remarks about Hungary and the Hungarian prime minister in recent interviews which he saw as “disparaging and disingenuous”, going “far beyond the bounds of civilised political debate and the behaviour expected of a vice-president of the European Parliament”.

Deutsch noted that there had been a precedent for the EP removing a vice-president from office for “making an unacceptable statement”.

“In my view, Katarina Barley has crossed the line with her behaviour, making her unworthy of being vice-president. I expect Madam President to take the necessary measures to preserve the dignity of the House,” Deutsch wrote.

Budapest real estate housing crisis in Budapest's real estate market
Read also Government to sell state, public property in Hungary

RoadPol elects Hungarian officer head

zsinkai

The executive board of RoadPol, the umbrella organisation for the traffic police of 26 European countries, has unanimously elected Hungary’s Elvira Zsinkai as the network’s president, the daily Magyar Nemzet reported on Tuesday.

Zsinkai told the paper she would promote adopting best practices from other countries to improve traffic safety.

She said Sweden, Denmark and Norway had managed to reduce the number of fatal road accidents to nearly zero, which she said could be achieved in other countries.

Zsinkai said the foundations had been laid by adopting the 3E principle of enforcement, education, and engineering, and made a special mention of Hungary’s “traffic boxes” as a best practice. The boxes placed by busy roads may contain a camera recording speeding drivers, but “drivers will not know if there is indeed a camera in the box, so they will slow down,” she said.

Zsinkai also mentioned the practice of the United Kingdom and Netherlands, where cyclists are required to take an exam and obtain a licence, whereas in Hungary “anyone without any training could take to the road”.

As for engineering, Zsinkai said the Scandinavian police routinely informed road managers if technical aspects of the road could contribute to accidents, and the manager could make repairs or even redesign the given section. The system could be introduced in all countries “but this also has financial considerations,” Zsinkai said.

kfor
Read alsoHungarian major general ends term as KFOR head

Hungarian Foreign Minister: Brussels decisions hurt Europe energy security

péter szijjártó in new york united nations

Decisions made by Brussels have so far have caused nothing but “damage” to Europe’s energy security, whereas measures taken by the Hungarian government have ensured continued supplies to the country, the foreign minister said in Prague on Wednesday.

The foreign ministry cited Péter Szijjártó after attending a meeting of EU energy ministers welcoming the fact that “no concrete decisions have been made” on introducing a cap on gas prices. Hungary will not support any proposal on introducing such measures because it would pose serious risk to the continent’s energy supplies and send energy prices skyrocketing, he said.

Hungary supports diversification in the form of using additional resources, such as importing more gas from Azerbaijan and increasing the capacity of the Trans Adriatic Pipeline, Szijjártó said, adding that “the real solution” to the energy crisis is in infrastructure development including the construction of more pipelines and LNG terminals.

Hungary supports keeping energy related decisions in national competence, allowing member states the autonomy to decide whether or not to join mandatory community-level energy purchase, the foreign minister said.

Szijjártó said Hungary’s natural gas supplies were secure and its gas storage facilities were 48,2 percent full, as against the European average of 26,9 percent. The government is paying increased attention to the smooth “physical and legal operation” of the TurkStream gas pipeline through which gas flows are steady between east and west.

He said the world was living “its first global energy crisis in history” and called for working out solutions for the long term.

Read alsoHungarian forint is in a slump again: euro has risen by 30 forints in a month

Interesting maps of Hungary that give a new perspective — PART I

Artwork_Europe_reddit

We know many faces of Hungary, Europe and the world. But let’s break away from the familiar. We will show you maps and images that can give you a new perspective on your view of the world. Check out our interesting and varied compilation.

Budapest instead of Seattle

Everyone has a basic knowledge of geography. However, the following map can put latitude into context. This map replaces the familiar European castles with cities in Europe and North Africa, and does so with the replaced city at the same latitude.

Thus, in Spain, Barcelona is replaced by Beijing, and in Italy, Palermo is replaced by San Francisco on the Sicilian peninsula. England’s capital, London, is replaced by Edmonton, while Yakutsk is replaced by Norway. In Hungary, no other city has been replaced. And the latitude of Seattle is almost the same as Budapest.

Europechangectiy
Photo: reddit

King Charles Zalánpatak visit
Read alsoKing Charles’s Hungarian cook shared secrets about his visits in Zalánpatak

Most famous art work

There are no cities on this map. Here, you can see the countries of Europe. However, within the country borders you can see one of the iconic paintings of that country.

Within the borders of Italy, we are greeted by the Mona Lisa, in Germany by Wanderer Above the Sea of Fog, in Greece by Venus de Milo, and in Hungary by The Old Fisherman. It was painted by Tivadar Kosztka Csontváry around 1902.

Artwork_Europe_reddit
Photo: https://www.reddit.com/r/MapPorn/comments/652cjw/famous_artwork_in_europe_oc_20001982/

Internet speed

Let’s look at a map of the world. The internet is important in everyone’s life these days. However, the same internet speed is not available everywhere. This map gives you information about this fact. The colours indicate which country has the fastest internet download speed.

At the top of the list are the USA and Canada, with internet speeds of 250-300 Mbps. While at the bottom of the list are the countries in Africa. Europe is in the middle. Hungary is ranked in the second best category, with internet download speeds of 200-249 Mbps.

internet_speed_map
Photo: https://www.reddit.com/r/MapPorn/comments/y0gmnm/average_internet_download_speed_by_country/

First football match

Football is one of the world’s best known and most popular sports. The celebration of football is the World Cup, when national teams from different countries compete against each other. Many are aware of the power relations of the present, but what about the past?

This map shows the results of a country’s first national team match. Green indicates a win, yellow a draw and red a defeat. Hungary’s first match was a defeat. However, Brazil and Portugal started with a defeat, while France started with a draw. Did your country win its first match?

Footballmap
Photo: https://www.reddit.com/r/MapPorn/comments/y0dhca/what_was_the_result_of_each_countrys_first/

Expat mums share their experiences living in Hungary II
Read alsoExpat mums share their experiences living in Hungary II

Hungarian President: Energy independence is Europe’s chief aim

Katalin Novák, Malta

Securing Europe’s energy independence and peace on the continent are urgent aims, President Katalin Novák said on Thursday after a meeting of the Arraiolos Group in Malta. Also, work must be done to preserve the clout of the bloc and the western system of alliances on the world stage, she added.

Novák told a press conference that Hungary supports Ukraine’s territorial integrity and sovereignty, as well as bringing war criminals to justice before an international court. Further, the war must be brought to an end as quickly as possible, she added at the informal meeting of the heads of European Union member states.

She said participants condemned all activities that threaten the infrastructure of any European Union member state, especially the energy network.

shell
Read alsoShell: Hungary could run out of gas oil by November

Sabotage of the Nord Stream gas pipelines is cause for particular concern, Novák said, and she called for an effective and exhaustive investigation with the aim of preventing any similar attack in the future. Novák said steps must be taken to bring the war to an end, and even if the countries failed to agree on how to achieve this, there were several proposals on which they could reach a consensus.

“We must preserve the community power of Europe and the system of western allies, we must preserve our common values and we must protect our peoples,” she said. Novák said Europe must not be allowed to fall to its knees because in such a situation it would be unable to demonstrate power.

“We must stand together as the single voice of Europe,” she said. Novák said that in their capacity as EU presidents, they perfectly understood that the EU was “the largest peace project in history”, and Hungary continues to be willing to make every effort to achieve peace without delay.

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The new Italian government might follow Viktor Orbán’s politics

Hungary Italy European Union

According to the leader of Nazione Futura, the Italian conservative movement, the outcome of the elections and the new government could bring strategic changes to the European Union.

Francesco Giubilei gave an interview to Mandiner discussing the consequences of the Italian elections

The results of the elections strongly affect the whole functioning of the European Union. Italy is third among the member states not only in population but also in terms of economy. North-African migration takes place largely through Italy, and in the future, even gas deliveries may arrive in Hungary through the southern country. Therefore, Italy plays an important role in shaping the policies.

By the end of the month, the composition of the new government will be announced to the public. It is very important what decisions the leaders of the three parties will make in regard to foreign policy and the economy. After ten years, the country has a conservative leadership again. This is a great opportunity for Italy to take a conservative direction in respect of the economy, immigration, family policy and the improvement of birth rates.

Italy has a great say in the policy-making process of the European Union. For instance, they can veto the “Green Deal”, which does not take into account important economic and social aspects.

“It is important to have a balance when it comes to political and professional figures, but I hope that conservative people will have a strong role in the government”, said Francesco Giubilei. Inflation and economic crisis are threatening the European Union. According to the leader of Nazione Futura, the Italian people and economy are in need of a new policy that takes the national interests into account. He does not reckon the new government would aim for the country’s exit from the European Union, however, implementing some positive changes will be necessary.

Giubilei also mentioned that Hungary and Viktor Orbán’s policies can serve as an example for Italy despite the number of differences between the two countries. For instance, the country has to reshape its family policy and improve birth rates. Orbán created excellent conservative ‘think tanks’ in Hungary, this could also be a good model to follow, Giubilei told to Mandiner.

Hungary’s Tokaj: the first official wine region in Europe

tokaj wine region

The Tokaj region, famous for its wines that have been prized since the 18th century, became an official appellation in 1737, some two centuries earlier than the famous Burgundy.

Take the road less traveled on your wine discovery tours, and you may find the oldest official controlled wine region in the world. It’s not necessarily where you might expect it – like in France or Italy. This region actually lies in Hungary (and, in a small part, Slovakia). It’s known as the Tokaj wine region.

The finest wine region

Tokaj wines (sometimes called Tokay in English) tend to be on the sweeter side, but you can’t blame them: that much sun and such idyllic conditions could make anyone sweet from head to toe. With 27 villages and towns, Tokaj in northeast Hungary is picturesquely nestled in the shadow of the Tokaj Mountains, formed by an extinct volcano. This adds to the unique microclimate and enriches the soil, creating the perfect wine-growing conditions.

It’s no wonder then that the first proof of vines growing in the region – a fossilized leaf print found in 1867 – dates back nearly 13 million years. Before years were counted in four digits, Hungarian tribes already knew techniques for producing wine and putting these vines to good use. Later the mighty oaks from around contributed to the perfection of local wines. Tokaj became known not only for the grape quality but for how the wine was matured in oak casks.

tokaj wine region
Tokaj wine region. Source: Facebook/Tokaji Világörökségi Borvidék

Tokaj – the “king of wines, wine of kings”

To get the most from the maturation process, Hungarians would carve cellars into the volcanic rock, which stretch nowadays for kilometers under all the villages. In the 16th and 17th centuries, winemaking flourished, and Tokaj – crowned in the famous words of France’s Louis XV “king of wines, wine of kings,” was known all around Europe. Not only was it known and appreciated in France, but also was one of the most important export goods to the Commonwealth of Poland and Lithuania.

As a treasure worth protecting, the viticulture and winemaking processes were officially recognized in 1613 and further protected in 1641. It took just another few decades to create the world’s first wine classification, with three classes of wines. In 1737 the process was completed when King Charles IV of Hungary created a demarcated wine region. Back then it was 22 villages that could – under described circumstances – use the word “Tokaj” on their labels. The new law introduced licenses for wine growing.

The Tokaj region has also received another notable award – a spot on the UNESCO World Heritage site for cultural landscape. It goes without saying that it is a must-see kind of place. While you’re there, give the actual “king of wines” a try – the Aszú variety. However, wines made from the Furmint or Hárslevelű grape varieties also shouldn’t be missed.

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Read alsoThese foodstuffs will see the biggest price surge in Hungary

CoE commissioner calls on Hungary to refrain from arbitrary removal of refugees

European Union

The Hungarian authorities should refrain from arbitrary removals of refugees, asylum seekers and migrants to Serbia and ensure access to a fair and effective asylum procedure, Dunja Mijatovic, human rights commissioner of the Council of Europe, said on Wednesday.

In a submission to the CoE Committee of Ministers concerning the expulsion of two individuals to Serbia, the commissioner said that “access to asylum and to any form of international protection in Hungary has become virtually impossible due to multiple measures taken by the Government since 2015. In addition, the number of forced removals to Serbia has increased significantly, with over 75,000 reported cases in 2022 alone. Allegations of ill-treatment and disproportionate use of force applied in the context of these removals persist.”

Hungarian forint state budget historic lows
Read alsoNew EU decision might ruin Hungarian forint

Mijatovic said policies and practices related to asylum and removal procedures in Hungary remained characterised by a lack of safeguards stipulated by the relevant international agreements.

In her opinion, the Hungarian authorities should undertake fundamental and far-reaching measures to bring the asylum system in line with the country’s international human rights and refugee protection obligations.

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Read alsoSocialists: Orbán cabinet is lying, the EU loans have not even been called

Students attention! This is the monthly rent of a small flat now in Hungary

budapest property market airbnb rental real estate

Compared to other European university cities, students can rent an apartment in Hungary at a much more affordable price during their studies. Let’s see how much it costs to rent a small student flat in Budapest and in the university towns in the countryside.

The admission thresholds for higher education institutions were announced on 21 July. This period is a boom in the rental market every year as students rush to find flats. In order to facilitate their decision, the Hungarian real estate agency Otthon Centrum has compiled a guide to the rent prices in Budapest and in the university towns in the countryside. This can be useful for both local students studying in other cities than their hometowns, as well as Erasmus students spending their next semester at a Hungarian university.

Read also: Guide for foreign students in Budapest

Budapest

Based on rental contracts signed in the first half of the year, the average price of one-room flats in the capital is around EUR 309 (~HUF 125,000). The average rent for two-room apartments in the city centre is EUR 459 (~HUF 186,000), while the cheapest two-room apartments in the suburbs of Pest cost EUR 353 (~HUF 143,000) – reported by the Hungarian news portal KKV Magazin. Flats larger than this are typically rented jointly by several students. In the case of three-bedroom flats, the most favourable offers are advertised in the suburbs of Pest and in the countryside. The average price for a three-bedroom flat in Buda was EUR 709 (~HUF 287,000), while in the inner districts of Pest it was EUR 509 (~HUF 206,000). Right before the announcement of the admission thresholds on 21 July, the rent of available rooms ranged between EUR 88-293 (~HUF 35,500-118,500) in the Hungarian capital.

University towns in the countryside

In the countryside, the average rent for a one-room apartment is EUR 185 (~HUF 75,000). In the case of two-rooms flats, tenants pay EUR 242 (~HUF 98,000) on a monthly basis. If more students would like to reside jointly, the average price they need to pay for a bigger three-bedroom apartment in the university towns is EUR 415 (~HUF 168,000).

A recently published summary of ingatlan.com also shows what are the rental prices in each Hungarian university city. Accordingly, the brick-built apartments for rent in Debrecen cost EUR 371 (~HUF 150,000). In Győr, Szeged and Pécs they are all EUR 346 (~HUF 140,000), and in Miskolc the average is EUR 247 (~HUF 100,000). In the case of apartments, Debrecen, Szeged and Pécs have the same rental price of EUR 297 (~HUF 120,000), while Győr and Miskolc have EUR 284 (~HUF 115,000) and EUR 241 (~HUF 97,500) respectively. In the university towns in question, rooms for rent were available for EUR 99-161 (~HUF 40,000-65,000) – reported by Pénzcentrum.

International comparison

Compared to other European university cities, Hungarian rental prices are very affordable. According to Numbeo, known as the world’s largest cost of living database, students pay the highest rental fee in London. Even in the outer suburbs of the city, the average price for a small one-bedroom apartment is EUR 1,584 (~HUF 640,000), while in the city centre it is EUR 2,138 (~HUF 864,000). In Ireland’s capital, Dublin, rents are close to London, while in Amsterdam, the average rent for a one-bedroom apartment in a non-central location is the equivalent of EUR 1,485 (~HUF 600,000). In the city centre of Delft, famous for its technical university, rents are around EUR 1,000 (~HUF 410,000), but on the outskirts of the city rents are up to 40% cheaper.

Vienna is also popular among university students. Here, rental prices in the inner districts are around EUR 923 (~373,000), while small flats in the suburbs are offered from EUR 495 (~HUF 200,000), with the average being EUR 668 (~HUF 270,000) for two rooms. Munich is more expensive, with an average of EUR 1064 (~HUF 430,000) for apartments further away from the city centre. In France, Spain and Italy, rental prices are much more affordable. In the non-central areas of Lyon or Bologna, you should expect to pay around EUR 500 (~HUF 205,000). Meanwhile in cities with tourist attractions, such as Barcelona, the monthly rental of an apartment is around EUR 742 (~HUF 300,000). Generally speaking, students can expect to find more affordable rents in rural university towns than in large cities.

Regarding the capitals of neighbouring countries, rents in non-central areas start from EUR 495 (~HUF 200,000) in Bratislava and Ljubljana. Meanwhile, in Zagreb, you can find rentals in the inner city for the same amount, while in the suburbs apartments are offered for a more affordable price: EUR 317 (~HUF 150,000).

Budapest real estate
Read alsoProperty prices and rents may fall in Hungary due to expensive gas and energy

Hungary remains one of the cheapest energy markets in Europe

Natural gas burner

The Hungarian government has announced that gas and electricity prices will increase significantly above a certain level of use. According to government calculations, three quarters of Hungarian households will not be affected. The market tariff, which will come into force in August, is more expensive than the reduced tariff, but still average for Europe. Including the reduced prices, residential energy is among the cheapest in Hungary.

Rise in electricity and gas prices

It has been made official that the price of gas and electricity in Hungary will rise above average consumption from August. A quarter of all Hungarian households will be affected by the new law. Gas will cost significantly more over 144 cubic metres per month and electricity over 210 kWh.

It is important to stress that this is still a lower price than the current market price. In other words, the Hungarian government has not transposed the world market price into practice. Gas prices will jump by a factor of seven, while electricity will cost twice as much after the limit. The government has named several exceptions. Reduced tariffs for large families and households using renewable energy sources will be maintained, vg.hu reports.

Read also: EU gives Hungary a month to act before they suspend funds!

Hungary at the top of the cheapness list

Despite the rise in electricity and gas prices, Hungary is still cheap by European standards. Even if you take the newly introduced residential market tariffs as a benchmark, you still pay more in the northern European capitals, as well as in Rome and Vienna.

If we include three quarters of Hungarian households, who continue to receive gas and electricity at reduced prices, we get a very different result. Out of the 3.5 million consumers registered in the gas supply, 2.6 million are not subject to price increases. This shifts the average significantly. Thus, Hungary has the fifth lowest gas prices in Europe for the whole Hungarian society.

For electricity, the situation is even clearer. The increased Hungarian electricity price is also at the bottom of the list. And the electricity price for three quarters of households is the second lowest after Belgrade.

Energy prices have exploded in the last 1-1.5 years. The impact of the Russian-Ukrainian war is clearly visible. According to an article by 24.hu, the effect of the increased prices is also evident in the growing demand for solar panels in Hungary.

PM Orbán said which “races” Hungarians might and would not mix with

EU to take away Hungary’s gas if an energy crisis comes?

Gas Hungary

The European Commission revealed its proposal on Wednesday about how member states should cut gas consumption. But what happens if some member states run out of that energy source? Can the EU take away, for example, Hungary’s gas?

According to the European Commission, the EU has to reduce gas consumption to avoid disruption and strengthen European energy resilience. Therefore, they proposed “a new legislative tool and a European Gas Demand Reduction Plan, to reduce gas use in Europe by 15% until next spring.” The plan affects “all consumers, public administrations, households, owners of public buildings, power suppliers and industry.” They all can and should take measures to save gas, the Commision believes. The Commission will also accelerate work on supply diversification, including joint purchasing of gas to strengthen the EU’s possibility of sourcing alternative gas deliveries, they wrote on Wednesday.

Based on the plan, EU member states need to reduce gas demand by 15% between 1 August 2022 and 31 March 2023. “The new Regulation would also give the Commission the possibility to declare, after consulting Member States, a ‘Union Alert’ on security of supply, imposing a mandatory gas demand reduction on all Member States. The Union Alert can be triggered when there is a substantial risk of a severe gas shortage or an exceptionally high gas demand.

Member States should update their national emergency plans by the end of September to show how they intend to meet the reduction target, and should report to the Commission on progress every two months. Member States requesting solidarity gas supplies will be required to demonstrate the measures they have taken to reduce demand domestically,” the European Commission said.

Portfolio.hu wrote that the number of countries rejecting the European Commission’s plan is increasing. Since the proposal needs a 2/3rd majority, French expert Thierry Bros believes it will not pass. He calculated that the number of states saying no would be around 40 pc. Poland, Portugal, Italy, Spain, France, Malta, Cyprus, and Greece made it clear that they would refuse to accept the EC proposal and Hungary is also expected not to vote for it.

Will the EU need Hungarian help?

There are growing suggestions that Europe will face an acute energy crisis in the summer. International analysts are predicting such an outcome. At the extraordinary Cabinet meeting last Wednesday, Minister Gergely Gulyás was given a question. Should Hungary bail out EU countries in an energy crisis? The minister replied that Hungary will not need help. Does that statement hold up on an international scale?

Gulyás was also asked whether to help member states in case of a crisis. The Minister said no, and when he was asked again, he elaborated.

“We will help everyone if Hungarian families and the Hungarian economy are safe, but we have no obligation to do so.”

Norbert Tóth, professor at the National University of Public Service, was asked to confirm or deny the minister’s statement. He says: “The question raised is very interesting and complex from a legal point of view. I think the point is that what the Minister said is factually correct. So there is no international treaty which says that one state has to help another state out in energy matters if it gets into trouble. But that doesn’t necessarily mean that the European Union doesn’t have the means to achieve any objective that it might have in that direction.”

As we reported before, Hungarian FM Péter Szijjártó flew this week to Russia to buy more gas. He announced that Hungary would like to purchase an additional 700 million cubic metres. Read HERE the Russian foreign minister’s, Sergei Lavrov’s reaction.

Raiffeisen: Hungary to be hit by a brutal recession

Raiffeisen Bank’s experts spoke about inflation, the energy crisis and the foreign debt crisis at their press conference. Continue reading below for more details.

Raiffeisen Bank experts also spoke about the interest rate hike, the current economic challenges in the EU and the US, and the oil market. They think inflation could peak at around 14 percent and the central bank’s rate-hiking spree could continue. Furthermore, they looked at what is in store for the oil market and what issues Europe is facing, writes Pénzcentrum.

Hungary and a brutal recession

“The government held a crisis meeting, this shows we really need to prepare,” said Zoltán Török, an analyst at the bank. There is no telling how severe the energy crisis will be, and Hungary needs to prepare for bad and worse. The bank expects that the country will be in a situation where there will be energy shortages. However, this will not affect the majority of the population but rather the large industries. There is a very rapid turnaround: in the first quarter it was 8 percent, that is now a thing of the past. In the second quarter, it was 5.5 percent. By the end of the year, the growth rate will turn deeply negative.

The recession will be caused by a slowdown in external demand and very high inflation, which will rise even further. The labour shortage will also do its bit: there will be a jobs shortage in up to two or three quarters, but he says unemployment will not be high. However, business investments are also being hit by poor investment appetite and very high-interest rates: next year will not be a happy one either, according to Zoltán Török.

More details from Raiffeisen

The bank believes that the price caps will stay with us, the government has set a trap for itself, because even a gradual removal of them comes at a heavy price. Although the measures remain, Raiffeisen expects inflation to peak at 14 percent. On the forint exchange rate, he said that it was difficult to give a forecast now because there were many uncertainties: as long as risk appetite was low and current problems persisted (war, price hikes, energy crisis), risks to the Hungarian economy would remain.

The analyst believes that the interest rate premium offered by the central bank is appropriate. However, the cycle of rate hikes could end before the end of the year, but this will require inflation to remain at a genuine peak of 13-14 percent.

Could the EU face the same?

Labour markets are strong in Europe, with wages up by 3 percent. A strong social safety net has disappeared due to COVID, but the continent seems to be slowly recovering. There is a chance of a minor recession triggered by the war, of course, and the continuing deterioration of money. However, the effects may not be long-lasting. To counter fragmentation risks, the ECB will soon announce a rescue package, which will mainly help southern European countries.