The number of Hungarians living in Austria has increased significantly since 2019, according to the statistics of the Austrian immigration office.
According to 444.hu, in 2019, 79 thousand Hungarians lived in our Western neighbour. In 2024, that number grew to 94.7 thousand. In Burgenland, a former territory of the Kingdom of Hungary and Austria’s Easternmost territory, 40,900 locals were born outside the country. That is 13,6% of the region’s population and is a 22.8% rise compared to 2019.
The biggest foreign group in Burgenland are the Hungarians. Their number is slightly above 8,300. The following group is those born in Germany (4,600), and Romania (4,500). In Vienna, 25 thousand Hungarians live, while their number was only 23 thousand in 2019.
On a national level, the most numerous foreign group in Austria are the Germans (265 thousand). They are followed by those born in Bosnia and Herzegovina, Türkiye, Romania, and Serbia.
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Fantastic news for travellers: Vienna-Budapest train services boosted with more frequent connections – read more HERE
On Monday, Foreign Minister Péter Szijjártó told the Salzburg Europe Summit that Europe should work together to achieve peace, stem waves of illegal migration, and restore the community’s economic competitiveness.
A statement from the foreign ministry quoted Szijjártó as referring to the war in Ukraine, the mass migration facing the continent for the past ten years, and economic questions “seen in a strongly ideological light” in the European Union.
“What do we suggest as in line with the EU’s interest? This will not be the mainstream position. We believe that Europe is interested in driving Ukraine’s development toward peace. Europe has an interest in reining in the waves of migration at last. Europe also has an interest in making economic decisions based on common sense,” he said. The Hungarian government, he added, “supports all initiatives aimed at peace in Ukraine. We will do everything to preserve national sovereignty and economic neutrality.”
Concerning the war in Ukraine, Szijjártó said that as opposed to sending more weapons to Ukraine, adopting further sanctions, and enabling Ukraine to use their weapons against targets in Russia, “talks should be launched, and in the end, we should find a peaceful solution to save human life.” While “the first approach has simply not worked … the second should be given a chance … (we should) try and concentrate on ways to make peace and (ways) to avoid prolonging the war,” the minister said.
Szijjártó said Hungary was currently under EU sanctions “for protecting the EU’s external borders”. He said Hungarian authorities have recently prevented over 500,000 illegal entry attempts. He noted that under international law, refugees could be granted temporary asylum in the first safe country after fleeing their homeland. “There is no word about second, third … tenth safe country,” he added. “Unless we return to the foundations of international law, we will never be able to protect the continent’s security,” he warned.
Szijjártó said “a possible new economic Cold War” and the world falling into new blocs were “a great threat” and sharply contrasted with Hungary’s interests. He added that Hungary continues to be interested in connectivity, a “civilised cooperation” between East and West.
Hungary is one of three countries in the world in which all three of Germany’s leading carmakers have plants. At the same time, five of the largest battery makers in the East have committed to have production in Hungary, Szijjártó said. “If we put artificial obstacles in the way of companies dominating the continent’s economic performance, we could cause huge problems, while the competitiveness of the EU has become even weaker than before,” he warned at the Salzburg Europe Summit.
The Hungarian Concession Infrastructure Development Plc. (Magyar Koncessziós Infrastruktúra Fejlesztő Zrt., MKIF) is operating 1,237 kilometres of motorway in Hungary. They announced the development of the two busiest motorways in Hungary, the M1 connecting Budapest with Austria and the M7 connecting the Hungarian capital with Lake Balaton and Croatia. The renewed motorways will have 3+1X3+1 lanes in several segments, instead of the current 2X2. Hopefully, there will be fewer traffic jams towards Austria and Croatia after the extension.
Motorways will be renewed in Hungary
According to index.hu, the company will operate and extend 1,237 kilometres of Hungarian motorway until 2057. The MKIFis in the ownership of a consortium of private equity funds belonging to László Szíjj and Lőrinc Mészáros, two well-known Hungarian government-close businessmen. Antal Rogán, the Head of the Cabinet of the Prime Minister, said the contract with the MKIF can be extended with the M5 and M6 motorways.
The MKIF started to operate most of the Hungarian motorways from 1 September 2022. Until 2034, they undertook the obligation to build 279 kilometres of high-speed road and 299 kilometres of motorway. Before that, they have to bring the motorway pavements to a uniform level, which means the renovation of 538 kilometres. The deadline for this project is 31 August 2025. In 2023, they finished 3.6 million sqm, and in 2024, they completed 3.9 million sqm, 20% of the total highway pavement. Moreover, they will renew 200 bridges and overpasses.
Photo: FB/NÚSZ
Developments will start in 2025
In the next few years, MKIF plans to extend the M1, M7 and M3 motorways. The M1 will be extended between the M0 ringroad and the Austrian-Hungarian border. The M7 will be extended between the M0 and Balatonvilágos, while the M3 between Budapest’s Szentmihályi Street and Gyöngyös.
The extension of the M1 will start in 2025, the M7 in 2027, and the M3 in 2031. The third lane between the M0 and Concó will be ready in three years. The MKIF will build intelligent hard shoulders (ITS), which will open for drivers only if traffic is heavy. As a result, in peak hours, vehicles will be able to use four lanes to Austria and back to Győr. Between Győr and Hegyeshalom, the 2X2 lanes will remain, with an additional ITS.
Photo: FB/NÚSZ
The details of the extensions
The M7 motorway will have four lanes (3+1) until Szabadbattyán, and between Szabadbattyán and Balatonvilágos, there will be 2+1 lanes. Work will start in 2027. The construction of M200, connecting Komárom and Székesfehérvár, will also begin three years later.
The M3 will have 3+1 lanes until Gyöngyös, but the project will only start in 2031.
In Polgárdi, Hungary’s most modern asphalt mixing plant is under construction. The test period will start in October. The plant aims to help the operation and extension of the M7 motorway.
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Hungarian motorway vignette prices increase from 2025 – read more HERE
State-owned Hungarian railway company MÁV signed a cooperation agreement with Austrian peer ÖBB at the InnoTrans international trade fair in Berlin on Tuesday.
Cooperation for better train service
The agreement extends to international passenger transport, maintenance and cargo service, MÁV said in a statement.
It added that both sides will work to step up passenger train service between Budapest and Vienna.
The agreement, which covers improving the quality of international passenger transport, performing maintenance tasks, and improving the competitiveness of rail freight transport, was signed by Zsolt Hegyi, CEO of MÁV Plc. and László Mosóczi, CEO of MÁV-START Plc. on the Hungarian side, and Andreas Matthä, Chairman of the Board of ÖBB Holding AG on the Austrian side.
More frequent train services between Vienna and Budapest
Under the terms of the agreement, the two countries’ railway companies will work towards a two-hour journey time between Budapest and Vienna, and will try to adapt the timetable structure and the stopping patterns of international passenger trains accordingly.
Although a significant reduction in journey times will only be possible from 2028 after the renovation of the railway line between Hegyeshalom and Vienna, both parties are working to introduce timetable changes that will allow more passenger trains to run at shorter journey times each year without stopping at Hegyeshalom and Tatabánya.
Currently, two pairs of Railjet trains per day cross the Hungarian-Austrian border without stopping at Hegyeshalmom with MÁV-START drivers as part of a pilot project. To extend this, MÁV-START and ÖBB are jointly providing the drivers and the necessary train crews.
ÖBB will endeavour to ensure that Railjet trains from Budapest and beyond Vienna can run faster and with new rolling stock in the new timetable model. At the same time, to improve passenger satisfaction, MÁV and ÖBB will develop a quality assurance system that will allow for a fast and efficient exchange of information between the companies in the event of disruptions.
Waberer’s International will be included again in the Central-Eastern European Composite CECE index of the Vienna Stock Exchange, the listed Hungarian haulier said on Tuesday.
Waberer’s weight in the basket is estimated to be 0.07pc, effective September 23, 2024.
New car registrations in Hungary fall 9.4pc in August
The number of new passenger car registrations in Hungary fell 9.4pc year-on-year to 8,111 in August, data compiled by the European Automobile Manufacturers’ Association (ACEA) show. Hybrid electric and plug-in hybrid vehicles accounted for 56pc of sales, cars with petrol engines made up 26pc and vehicles with diesel engines 12pc. Fully-electric vehicles accounted for 9pc of sales. Sales of fully-electric vehicles increased 8.8pc to 518 during the period. In January-August, new car registrations in Hungary rose 8.2pc year-on-year to 79,976.
The number of new passenger car registrations in Hungary fell 9.4pc year-on-year to 8,111 in August, data compiled by the European Automobile Manufacturers’ Association (ACEA) show.
In a separate statement, the Energy Affairs Ministry said registrations of new battery electric cars had climbed 53.5pc in Hungary in January-August, at the second fastest pace in the European Union after Malta. The ministry noted that over 3,700 businesses, so far, had submitted applications for subsidies in a HUF 30bn government scheme to support purchases of EVs.
ÁKK sells HUF 45.0bn of bonds at auction, over plan
The Government Debt Management Agency (AKK) sold HUF 45.0bn of bonds at auction on Thursday, HUF 10.0bn more than planned. AKK sold HUF 10.0bn of three-year bonds, in line with its original offer. Primary dealers bid for HUF 42.0bn of the securities. Average yield was 5.78pc, 1bp under the secondary market benchmark yield and 5bp lower than the yield at the previous auction of the bonds two weeks earlier.
AKK sold HUF 22.5bn of five-year bonds, raising its original offer by HUF 7.5bn after bids came to HUF 121.8bn. Average yield was 5.72pc, 5bp under the benchmark and 7bp lower than the yield at the previous auction. AKK sold HUF 12.5bn of ten-year bonds, HUF 2.5bn more than planned. Bids reached HUF 49.5bn. Average yield was 6.21pc, 1bp under the benchmark, and 3bp lower than the yield two weeks earlier.
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Budapest is preparing for a significant flood surge, with the Danube’s water levels expected to rise dramatically in the coming days. According to the National Water Forecasting Service (Országos Vízjelző Szolgálat), starting Monday, the river’s water level will increase by roughly one meter per day, surpassing 800 cm by midweek. Current data shows the river’s level at 250 cm, and it’s predicted to reach as high as 850 cm, potentially triggering third-degree flood alerts. For comparison, the highest water level ever recorded was 891 cm.
Budapest to see restrictions due to the flood situation
Given these projections, authorities are considering closing off Margitsziget (Margaret Island) to both pedestrian and vehicle traffic, Portfolio reports. The lower embankment of the Pest side will likely be submerged by 17 September, while other sections, including the Buda side, will be closed from 8 PM on 16 September.
This surge comes after days of severe weather across Austria and parts of Central Europe. Heavy rainfall has caused significant flooding, particularly in Lower Austria and Burgenland. The storms have now reached western Hungary, prompting the Hungarian Meteorological Service (HungaroMet) to issue an orange alert for Sunday, warning of wind gusts reaching 110 km/h in some areas, Portfolio writes in another article.
Flooding in Austria
In Austria, the Lainsitz River has overflowed, flooding roads and disrupting train services between Amstetten and St. Valentin. Vienna has also faced challenges, with partial closures on metro lines due to water entering tunnels. Emergency evacuations are underway, and the Austrian army has been deployed to assist, Die Presse reports.
Es ist soweit: Erste Flüsse in Niederösterreich überschreiten nun die 30-jährliche Hochwassermarke – etwa die Lainsitz im Waldviertel.
Und die kommenden 48 Stunden bringen gerade im Osten noch einmal extreme Niederschlagsmengen.
(Bilder: Stadtgemeinde Weitra) pic.twitter.com/ZfekYSLqPt
Although forecasts indicate a reduction in rainfall over the next few days, strong winds continue to hinder recovery efforts in Austria. Winds in some regions have reached speeds of 121 km/h, particularly in higher elevations such as the Rax mountain station.
The situation in Czechia
Flooding in Czechia on 14 September. Photo: MTI/EPA/Martin Divisek
Flooding in Czechia on 14 September. Photo: MTI/AP/Petr David Josek
In Czechia, tens of thousands of people are being evacuated due to flooding. Nearly 3,000 people are leaving their homes in the Moravian-Silesian region, with thousands more evacuated from Opava. Both the Moravian-Silesian and Olomouc regions have declared states of emergency, and four people are missing due to the floods, according to Hospodarske Noviny.
Heavy rain continued overnight into Sunday, and forecasters warn that the combined water flow in areas such as Jeseníky, Krnov, and Opava may exceed levels seen only once in a century. Southern Bohemia is also facing severe conditions.
Sunday’s forecasts predict less rain than today, but in the Jeseníky Mountains, up to 80–100 mm of rain could still fall, according to Environment Minister Petr Hladík. The bad news is that more rain is expected on Monday, he added.
In Hungary, authorities advise residents in affected areas to avoid travel until conditions improve.
Construction and Transportation Minister János Lázár said in a social media post on Thursday that the state of Hungary could acquire Austrian construction company Strabag’s stake in GySEV (Győr-Sopron-Ebenfurti Vasút), giving it a majority holding in the regional railway company.
GySEV, the regional railway company
GySEV is a regional railway company operating in Hungary and Austria. Founded in 1872, it manages railway services across the western regions of Hungary and parts of Austria, including both passenger and freight transportation. It plays a significant role in connecting smaller towns and cities, fostering cross-border transportation and trade between the two countries.
Hungarian state is in the majority
Lázár called out Hungary’s earlier Socialist governments for signing contracts with the Austrians that had put the Hungarian side at an “unwarranted disadvantage”. While the state of Hungary plowed even more money into GySEV, the Austrians failed to keep up with their part of the capital raises while keeping their veto right, he added.
He noted that GySEV was owned by the states of Austria and Hungary, and Strabag. He added that Austria’s competition authority has now cleared Hungary’s acquisition of Strabag’s stake.
As the Minister stressed:
The transaction is good news for all passengers and employees of Hungarian railways. The development of GySEV, which was also achieved with Hungarian taxpayers’ money, will now make a tangible contribution to the catching-up of MÁV.
This will be much needed because the Hungarian State Railways, MÁV is in a terrible condition, and Minister Lázár has received a lot of criticism for the staggering delays, the postponed renewal of the railway tracks, and the old fleet.
As we wrote earlier, MÁV has set a new negative record in August, with a record percentage of trains running late, read details HERE.
Austria is preparing for exceptional rainfall in the coming days, particularly in the Danube catchment areas, which is also expected to affect Hungary, according to Telex.
The heavy rainfall is forecast to cause a dramatic rise in water levels along the Hungarian stretch of the Danube, where levels are currently much lower than usual. In Budapest, where the water level is currently just 1370 mm, experts predict a sharp increase to 5650 mm by 17th September.
The situation is even more severe at Nagybajcs, where the current water level of 1830 mm is expected to surge to 6000 mm within six days. While these forecasts may change due to weather variability, the overall trend indicates rapidly rising water levels that could lead to significant flooding.
Photo: Facebook/Karácsony Gergely
Experts warn that the rapid rise in water levels could trigger flood alert level 1 at Nagybajcs as early as 15th September, with level 2 expected to be reached just two days later. In Budapest, the first alert level is set at 6200 mm, a threshold that would necessitate the closure of the city’s lower quays. Based on current projections, water levels in the capital are likely to surpass 5650 mm.
The anticipated flooding is mainly due to the extreme rainfall forecast for the coming days. Average daily rainfall is expected to reach 35.1 mm at the Inn, 63.4 mm at the Traun and Enns, 71.6 mm in the Vienna Basin, and 69.4 mm at the Morava — all significantly higher than typical levels for this time of year.
Austrian weather forecasting sites have been issuing warnings about the potential for severe flooding, emphasising the uncertainty of how the precipitation will manifest. A key factor is whether the expected precipitation will fall as rain or snow at higher altitudes. If it falls as snow, it will not immediately contribute to river levels.
Recent flooding of the Danube in Budapest
Photo: Facebook/Karácsony Gergely
The potential for significant flooding comes just months after the last flood event on the Danube, which occurred in June, with Budapest and other areas along the river experiencing considerable challenges. The previous flood event was recorded last Christmas, marking a period of increased flood activity after nearly a decade of relatively stable conditions since the record-setting flood of 2013.
During the June flood, over 500 kilometres of Hungary were under flood alert, with large areas of vegetated floodplains inundated. At that time, the vegetation in these floodplains was at its seasonal peak, enhancing the land’s resistance to floodwaters and slowing the incoming water, which allowed the flood to spread more gradually.
However, the continuous rise of the Danube’s water level, coupled with tidal surges, forced Budapest authorities to take action. On 6th June 2024, Budapest Public Road closed several sections of the lower quays on both the Buda and Pest sides of the city. The flooding reached such levels that even the main building of the Budapest University of Technology and Economics (BME) had to be temporarily closed due to high water.
Similar flooding occurred during the last week of December last year, with the Danube and its tributaries experiencing elevated water levels due to heavy rainfall. In Budapest, the water level peaked at 6930 mm.
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PHOTOS – Flooding Danube: Water level extremely high in Budapest – Read here
Hungary to build new Danube bridge with a budget of EUR 1 billion – Read here
Hungary’s wealthiest man, Lőrinc Mészáros, has purchased a new private jet expanding his fleet. Sources suggest he has already travelled to France and Mallorca using his latest acquisition.
Mészáros buys new private jet
Forbes pointed out that a recent report from Átlátszó revealed that a Bombardier Challenger 3500 private jet with Austrian registration OE-HOZ, linked to Hungarian billionaire Lőrinc Mészáros, arrived in Budapest from Vienna in July. The jet, operated by the same Austrian company that manages another plane used by the Mészáros circle, landed in Hungary around the same time as a helicopter used by the businessman’s family, suggesting coordination between the two aircraft. The helicopter likely transported the pilot of the private jet from Vienna to Hungary.
This jet, part of the businessman’s ever-expanding fleet, seems to mark an upgrade following last year’s controversy surrounding his luxury yacht. After landing in Hungary, the private jet flew to the South of France and then to Palma de Mallorca, where his luxury yacht, the Rose d’Or, was also anchored, according to maritime tracking data. This further reinforces the connection between the mysterious jet and the business circle of Hungary’s richest man. According to Átlátszó, the private jet cost around HUF 9.6 billion (around EUR 24 million).
We are fairly certain that there is no need to introduce the hugely popular Designer Outlet in Parndorf, Austria, to anyone who loves shopping. Here, you can find your favourite designer pieces at significant discounts. From 20 September, a direct bus service will connect Budapest with the Parndorf outlet.
Designer Outlet in Parndorf is popular among Hungarians
As Telex writes, the Designer Outlet in Parndorf, a well-known shopping destination for Hungarians, attracts around one-sixth of its visitors from Hungary each year. Opened in 1998 and located in Burgenland, Austria, the outlet is a major employer in the region, with 48% of its 2,000 staff coming from Hungary or Slovakia, and three-quarters of its workforce being women. Managed by McArthurGlen, the Designer Outlet in Parndorf features 160 designer brands spread over 37,000 square metres and is currently undergoing expansion. Despite its popularity, the company plans to strengthen its engagement with Hungarian media in the future.
Covid’s effects are wearing off
The manager of the Designer Outlet in Parndorf told *Telex* that despite the arrival of well-known brands in neighbouring countries and the impact of Covid, the proportion of Hungarian visitors, at 15-18%, has remained stable. This suggests that as the outlet grows, interest from Hungarian shoppers increases in line with overall visitor numbers. Before Covid, Parndorf saw a peak of 6.2 million visitors in 2019, followed by a decline. However, in 2023, the Designer Outlet in Parndorf achieved a record-breaking 6.8 million visitors.
What’s behind the outlet’s success?
McArthurGlen, Europe’s leading designer outlet operator, manages 24 outlets across eight countries, including the Designer Outlet in Parndorf, which is its easternmost location. With an annual turnover of EUR 5 billion, McArthurGlen has a strong presence in Western Europe and even Canada. What sets the Designer Outlet in Parndorf apart is its proximity to three capitals—Vienna, Budapest, and Bratislava—all within a 90-minute drive. While some outlets serve larger populations within this range, Parndorf’s unique location adds to its appeal.
The number of Hungarian shoppers at the Designer Outlet in Parndorf grew by 27% last year and by 12% in the first half of this year. While the exact spending by Hungarians has not been disclosed, it was noted that Middle Eastern and Asian shoppers, who often seek luxury goods, tend to spend more per visit. To attract more Hungarian visitors, the company is introducing shuttle buses from Budapest. However, Parndorf is also accessible by rail and is located near hotels and entertainment venues.
Photo: Facebook / Designer Outlet Parndorf
Exciting new developments ahead!
From 20 September, the Designer Outlet in Parndorf will launch a direct shuttle bus service from Budapest. The 20-seater bus will depart from Báthory Street at 9 am, with tickets priced at EUR 29. Shoppers will have around five hours to explore the outlet, with the return bus leaving at 4:30 pm and arriving back in Budapest by early evening. Parndorf is also expanding its offerings, with popular overnight shopping events and new luxury brands like Alexander McQueen joining in September, alongside Spyder, Red Bull World, and Tommy Hilfiger Kids.
State-owned China Airlines is attracting passengers from Hungary with appealing discounts to exotic Southeast Asian destinations much cheaper than before. Firstly, passengers do not have to pay for the train ticket between Hungary and Vienna. Secondly, their plane ticket is EUR 3-400 cheaper. Let us show you how.
According to turizmus.com, China Airlines introduced discounts on non-stop flights departing from Vienna International Airport to Taiwan Taoyuan International Airport, which serves Taipei. The discount is also valid for flights from the Taoyuan International Airport to Southeast Asian destinations, including Japan, South Korea, Malaysia, Cambodia, the Philippines, Singapore, Indonesia, and Thailand.
If you book your flight until the end of 2024, the price will be 10-12% cheaper, provided you choose business class. As a result, you may save EUR 3-400. For people travelling with China Airlines from Budapest, the discount is higher. The Chinese airline provides free return train tickets for CI63 and CI64 flights departing from the Vienna International Airport (Schwechat). You may board the train in Budapest or Győr.
Southeast Asian destinations cheaper from Budapest
If the transfer time in Taipei is longer, passengers can participate in a sightseeing tour in the Taiwanese capital for free three times a day. The tours depart from the airport.
As we wrote HERE, China Airlines introduced their “Rail & Fly” service in June for trains commuting between Budapest and Vienna International Airport. That allows passengers from Hungary to book Austrian train tickets from Győr and Budapest that connect with China Airlines flights. The train ticket is issued on the same reservation as the China Airlines flight ticket, enabling passengers to receive both bookings simultaneously. This new, affordable service can be booked directly through the airline’s website.
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Special investigation into airlines announced in Hungary to address ongoing consumer complaints – read more HERE
The number of Austrian police officers is being raised to more effectively fight illegal migration, people smuggling and other cross-border crimes, the police said on its official website on Monday.
Under an agreement signed by the two countries interior ministers in 2020, Austrian policemen have been helping protect the European Union’s external borders in Hungary and curb illegal migration, and people smuggling, police.hu said.
On Monday, seven police officers joined the 18 already serving in Hungary, and their number is planned to reach 48-50 by the end of the month to conduct joint patrols with Hungarian colleagues, the statement said.
The minister of foreign affairs and trade said in Mohács, in southern Hungary, on Monday that ensuring that all Hungarians benefit from the success of the government’s investment strategy and its positive impact in the form of new jobs, stable livelihoods, and developing infrastructure is an important goal of Hungary’s government.
Péter Szijjártó addressed the inauguration of an over 2 billion forint (EUR 5.1m) capacity expansion project of Austrian Kronospan’s wood-based panel manufacturing plant.
According to a foreign ministry statement, Szijjártó said the Hungarian state has contributed 286 million forints to the project.
He said the new equipment would increase the plant’s capacity to an annual 240,000 cubic meters. The plant in Mohács purchases more than 50 percent of its basic materials from Hungarian producers and sells 90 percent of its products in export markets, Szijjártó added.
The minister said that amid difficulties and changes in the world economy in the past years, Hungary had maintained its stability and remained an attractive country in the international competition for investments.
“This recent investment will largely contribute to the development of Hungary’ wood industry which employs 14,000 people and records a close to 500 billion forint volume of production. Its exports is well over 50 percent which is a proof of its competitiveness,” Szijjártó said.
Austria is Hungary’s fourth largest trading partner, he said, adding that there were more than 2,300 Austrian-owned businesses operating in Hungary which employ some 75,000 people.
SPAR remains incensed by the Hungarian government’s introduction of an additional retail tax—often referred to as an “excess profit” tax—following the fourth consecutive landslide victory of Prime Minister Viktor Orbán and his co-ruling Fidesz and KDNP coalition in 2022. SPAR is urging the European Commission to initiate another infringement procedure against Hungary and has emphasised that the company will undertake improvements if the government removes this additional financial burden.
SPAR presses for an infringement procedure against Hungary
We have reported on several occasions that the Hungarian state budget is grappling with serious financial challenges due to reduced consumer spending in the aftermath of COVID-19, the war in Ukraine, and the inflation crisis. In response, the government introduced several extra taxes, including what they term the “excess profit tax”. In theory, retail chains are required to pay an additional 4.5% tax, but in practice, this cost is often passed on to consumers. According to the supermarket franchise, this results in a EUR 90 million shortfall each year, preventing them from initiating development projects in Hungary, even though the market urgently requires investments in logistics.
As reported by economx.hu, the retail chain continues to lobby the European Commission. The company is pushing for the Commission in Brussels to initiate another infringement procedure against Hungary over the excess profit tax. This information was reported on Friday by Lebensmittel Zeitung, a German publication specialising in the food market. SPAR has stated that if the government were to abolish this additional tax, the company would begin investing in Hungary, which is their largest foreign market.
Spar. Photo: Daily News Hungary
SPAR’s CEO, Hans Reisch, has indicated that the company faces significant logistical challenges in Hungary, necessitating investment to remain competitive. However, their revenues are currently in the negative, largely due to government-imposed food price caps and the additional tax. We previously reported that SPAR restructured its operations in Hungary to shield itself from business circles close to Orbán. Property and building management, as well as retail and logistics rights, have been transferred from their Hungarian subsidiary to their Swiss company. Additionally, their supermarket operations have been attached to their Austrian company, allowing them to save EUR 10 million per year.
Hungarian minister slammed SPAR
Ahead of the European Parliamentary elections on 9 June, the European Commission had yet to decide on SPAR’s call for an infringement procedure. Nevertheless, CEO Reisch continues to push for action, despite a 2020 ruling by the European Court of Justice stating that progressive extra taxes are not illegal within the European Union.
The first clash between the Hungarian government and SPAR occurred this spring. The Austrian CEO criticised the Hungarian government’s tax policies, prompting János Lázár. Minister of Construction and Development—widely believed to represent Orbán’s views on such matters—to respond by calling SPAR an “Austrian grocer”. He added that multinational companies should learn to respect Hungarian consumers and the government.
Photo: FB/János Lázár
A new trade policy strategy in the making?
Dániel Molnár, a senior analyst at the Makronóm Institute, commented that SPAR is no longer competitive in the Hungarian market due to high prices and an outdated business model. Csaba Bubenkó, president of the modern trade union Egyenlő.hu, remarked that SPAR should not treat the Hungarian retail sector as a “flea market”. He argued that it has been profitable for multinational companies to operate in Hungary, given that they generate substantial profits, have opened thousands of stores, and have sometimes acted against the interests of Hungarian companies. Moreover, they have failed to pay competitive wages and have sold lower-quality food products than those available in Western markets, resulting in immense profits.
Photo credit: Daily News Hungary
Economx.hu also consulted other market players who expressed dissatisfaction with the excess profit tax. However, they clarified that SPAR’s attacks in the foreign press are undermining their efforts and are calling for a new trade policy strategy in Hungary. They added that SPAR is provoking the Hungarian government and turning a taxation issue into a political one.
The Hungarian State Railways (MÁV) has been struggling recently with delays, cancellations, breaking railway tracks and other problems. This autumn, MÁV will introduce a new operation scheme in several suburban lines around Budapest. The changes concern the line carrying passengers to and from Budapest Airport and Győr (Vienna).
MÁV introduces a new system affecting Budapest Airport, Vienna lines
According to mav.hu, ticket inspectors will disappear from several MÁV lines connecting Budapest with its suburbs. The new scheme will start on 2 September between Rákos and Pilisvörösvár (line S76). There was a testing period on that line between 7 April and 31 May, and it seems it was successful because MÁV plans to expand the scheme to other railway lines in Hungary.
MÁVsaid in Western Europe, trains commuting without ticket inspectors are common.
The next step will be the Budapest-Esztergom, Budapest-Győr, Bicske-Budapest-Kelenföld (G10), and Budapest-Déli-Komárom (S10) lines from 16 September. From 2 September, there will be no ticket inspectors on the Rába InterRégió trains on the weekends.
S76 train (Pilisvörösvár-Rákos) at Aquincum stop. Source: Wikimedia Commons/Vince
The next round will start on 30 September by extending the system to the Budapest-Székesfehérvár (S36, G43) and the Budapest-Déli-Százhalombatta and Budapest-Déli-Pusztaszabolcs lines. The extension will happen on the Budapest-Nyugati-Monor(-Szolnok) (S50, Z50) line and some weekend night passenger trains between Budapest and Szolnok, Sülysáp, Nagykáta (S60) and Gödöllő (S80). The route to Budapest Airport from the Nyugati Railway Station is on the S50 line, but you have to take off the train at the Ferihegy train station to get on the 100E bus (or a taxi) and get to the Airport with a 10-15 minutes ride.
Train conductors will have more work
The lines will operate without a ticket inspector for a testing period. MÁV promised to draw passengers’ attention via loudspeakers that they were travelling without ticket inspectors. That is because their task is not only verifying tickets’ validity, but also helping passengers in case of emergency, supporting the conductor and disabled passengers.
MÁV wrote passengers may use the emergency call if needed (technical problems, health issues) and establish contact with the conductor. However, you should call the conductor only in real emergency cases.
The renovated facade of the Nyugati railway station. Source: Facebook/MÁV
MÁV also highlighted that you could only start your ride with a valid ticket or pass. The state-owned company will have random ticket inspections on the lines. Travelling on the trains without a ticket or pass would mean higher surcharges.
Disabled people should inform MÁV 36 hours prior to travel to get proper help.
The new system will place more burden on the conductors. They will inform the passengers about any irregularities concerning their travel. Furthermore, they will be responsible for safe boarding and get-offs via the surveillance camera system. They will also help passengers with disabilities.
In extraordinary situations, ticket inspectors will return to the trains.
Read also:
Five important things you should know before travelling by train in Hungary – read more HERE
In addition to three German young people, two students from Széchenyi István University won prizes in the essay competition organised by the Hungarian-German Association for Youth on the 35th anniversary of the Pan-European Picnic. The prestige of the competition is reflected in the fact that the awards were presented by the President of the Association in the presence of the Presidents of the two countries.
The Pan-European Picnic is one of the emblematic events of the regime changes in Central and Eastern Europe. On 19 August 1989, a large number of people gathered near Sopron in the spirit of the idea of a Europe without borders, and then, taking advantage of the programme, hundreds of East German citizens broke through the border gate and fled to the West. This became a symbol of the fall of the Iron Curtain and indirectly contributed to the fall of the Berlin Wall a few months later.
The 35th anniversary of this historic moment was recently commemorated in Sopron, organised by the Hungarian-German Youth Association and the Hungarian office of the Konrad Adenauer Foundation. The event gave seventy young people from six countries the opportunity to deepen their knowledge of history. As part of the programme, the results of an essay competition organised by the association were formally announced. There were 21 entries presented, assessing the historical significance and impact of the Pan-European Picnic. The themes of cultural understanding and civic participation dominated, with eight essays on each, while four essays on the Picnic itself and one on EU membership were submitted.
The students of Széchenyi István University, Máté Kónya and Borbála Illés also took a selfie with German President Frank-Walter Steinmeier. Photo: dujw.org
At the ceremony, the prizes were presented by the Presidents of the two countries, Dr Tamás Sulyok and Frank-Walter Steinmeier, together with Dr Erzsébet Knáb, President of the Hungarian-German Youth Association. “We believe that every meeting, every joint activity that we enable between German and Hungarian young people contributes to building a bridge that we Germans and Hungarians will cross together, hand in hand, in the spirit of partnership”, stressed Dr Erzsébet Knáb, who is also the founding president and a member of the Board of Trustees of the Széchenyi István University Foundation. The awards were presented at the Summer Academy, where participants also discussed the impact of historical events such as the Pan-European Picnic on today’s generation.
A jury of renowned, highly respected German and Hungarian personalities awarded prizes to three German and two Hungarian young people. The latter two are both students of Széchenyi István University, although there were entries from a number of Hungarian higher education institutions: Máté Kónya, from the International Studies degree programme, was awarded second prize, while Borbála Illés, studying Law, won a special prize.
The five winners of the essay competition, including Széchenyi István University students Máté Kónya (fourth from left) and Borbála Illés (fourth from right), received their awards from Dr Tamás Sulyok, President of the Republic of Hungary (first from left) and Frank-Walter Steinmeier, President of the Republic of Germany (second from right), and Dr Erzsébet Knáb, President of the Hungarian-German Youth Association (far right). Photo: dujw.org
“I am grateful to the Hungarian-German Association for Youth for its long-standing commitment and success in fostering relations between the two countries through youth involvement and high-quality events. I am very happy to have been part of this effort at the Summer Academy organised in the context of the anniversary of the Pan-European Picnic. I would like to thank Széchenyi István University for the student-centred, high-quality education that contributed to my current achievement. And as a Sopron citizen, I particularly appreciate the fact that the cultural richness and historical significance of our city is brought to the fore through such prestigious events,” said Máté Kónya.
“For me, the Summer Academy and its highlight, the Memorial Day, were both a challenge and a life-changing experience. It was a tremendous opportunity to meet so many people thinking together, working for a common goal and to relive this historic event in such a great community. I am grateful to all those who participated in making it happen, without whom I would not have realized how important it is for me to build bridges not only between nations, but also between the goals that shape our future”, said Borbála Illés.
The Hungarian-German Youth Association awarded valuable prizes to the participants of the essay competition. The first prize winner received €150, the second €100 and the third €50. In addition, the top three winners each won a five-day Interrail ticket to travel around Europe.
Read also:
Sulyok: Hungary-Germany relations key – Pan-European picnic’s 35th anniversary, read more HERE
Speaker of Parliament László Kövér met Wolfgang Sobotka, the president of the Austrian National Council, in Vienna on Tuesday, the parliament’s press office said.
The working lunch focused on the priorities of Hungary’s presidency of the European Council, economic and border protection cooperation, as well as stopping illegal migration, the statement said. Kövér and Sobotkaalso touched on support for the EU integration of Western Balkans states, the conflict in Gaza, anti-Semitism in Europe and the war in Ukraine.
Kövér and Sobotka welcomed an expanding cooperation between the two parliaments, through regular meetings of the heads of parliaments and cooperation between expert committees and friendship groups.
Sobotka and Kövér in Vienna. Photo: MTI
Kövér thanked Sobotka for Austria’s help in border protection, especially for deploying policemen to the Hungary-Serbia border, the statement said. At the same time, he said the European Commission’s decision to levy fines against Hungary over issues regarding migration policy were “unacceptable”.
Sobotka said Austria supported the priorities of the Hungarian presidency, especially those connected to “ushering the Western Balkans into the European Union” and to fighting illegal migration.
At the same time, Sobotka expressed concerns over what he called the Hungarian government’s “discriminative” interference into the food retail sector and the construction industry, and called for further talks on the matter. Kövér proposed to table the issue at the Austria-Hungary economic roundtable.
Sobotka and Kövér both praised their countries’ growing tourism, and Kövér said he hoped Austrian tourists’ interest in Hungary would grow even further.
Read also:
Taylor Swift in Budapest? Fans heartbroken as 3 Vienna concerts cancelled – read more HERE
Leaving home in hopes of a better life: Here’show much Hungarians in Austria earn
Taylor Swift fans were left deeply disappointed after her Vienna concerts were cancelled due to a terror threat. Some fans lost money on hotels, while others undertook long journeys in vain. Hungarian fans have now started a petition to move the cancelled concerts to Budapest.
3 sold-out Taylor Swift concerts cancelled in Vienna
American singer-songwriter Taylor Swift dress arrives at the 2023 MTV Video Music Awards held at the Prudential Center on September 12, 2023 in Newark, New Jersey, United States. Photo: depositphotos.com
Austria’s Interior Ministry announced that two people had been arrested on suspicion of planning an attack at Taylor Swift’s Vienna concerts. Security measures were initially tightened, but the decision was ultimately made to cancel all three shows.
One fan, who was already in Vienna when the news broke, revealed to RTL that she had planned to attend all three concerts and had spent about HUF 400,000 (more than EUR 1,000) on her accommodation. Another fan said she had booked a hotel in Vienna but decided not to travel due to safety concerns, even though she couldn’t get a refund.
Vienna’s compensation
Many fans had gone to great lengths for the concerts; one drove for 17 hours, while another flew from Hawaii partly to attend.
In response to the widespread disappointment, Vienna has offered various forms of compensation, including free entry to several museums for ticket holders until 11 August. Meanwhile, Hungarian Swifties have launched a petition to bring the cancelled shows to Budapest, hoping to give the star’s fans another chance to see her perform.
