Hungary joined the European Union in 2004 with the aim of catching up or at least approaching the economic and social development of Western European countries. The optimism of the country, then one of the most advanced economies in the region, was well-founded: a network of motorways, a cheap and skilled labour force and infrastructure made Hungary attractive to investors. By tapping into the resources and opportunities offered by the EU, growth and development were a given, at least on paper.
Over the past two decades, the Hungarian economy has grown in terms of numbers, but it has fallen back significantly compared to its competitors. According to Népszava, GDP per capita in purchasing power parity terms has increased by a factor of 2.2, but the country has slipped from 19th to 22nd place in the EU.
It is particularly unfortunate that Romania and Bulgaria, which started out in a much weaker position than Hungary, have now overtaken it in many indicators. In terms of consumption, for example, Hungary fell from second last in 2022 to last in 2023, ahead only of Bulgaria, which has also moved up in the meantime.
Employment and income
The labour market is one of the areas where the Hungarian economy has achieved outstanding results. Employment rates have improved significantly, with the employment rate for the 15-64 age group rising from 57% at the time of entry to 74.4%, making it one of the best performers in the EU.
Wages have also increased significantly: Hungarian wages in purchasing power parity (PPP) terms have increased by almost two and a half times, ahead of Slovakia. However, the picture for pensions is less favourable, with Polish, Romanian and Slovakian pensions also rising faster than Hungarian pensions. Consumption is also on a downward trend: from being the region’s second in 2004, it has fallen to last place in 2022.
Policy mistakes, economic downturn and corruption
The deterioration in Hungary’s economic performance is closely linked to policy failures. Under the MSZP-SZDSZ government, the economy was characterised by loose fiscal policy and indebtedness after accession. Although many infrastructure investments were made, the 2008 financial crisis severely set back the country’s performance. A EUR 20 billion loan from the EU and IMF saved the country from bankruptcy, but recovery has been slow.
After 2010, the Orbán governments adopted an unorthodox economic policy stance that initially dampened growth. Later, growth was artificially stimulated by the central bank and the government pumping large amounts of money into the economy, which produced short-term results but led to higher inflation and structural problems in the longer term. An industry-led economic policy, with a focus on low-value industrial production rather than high-value-added innovation, has also contributed to the regional backwardness.
Corruption and the lack of rule of law have exacerbated the situation. The Orbán governments have often used EU funds inefficiently and established a system of patronage. Rampant corruption has led the EU to suspend a number of EU funds, costing the country billions of euros. In recent years, these policies have not only alienated foreign investors, but also Hungarian businesses, and a growing number of Hungarian businessmen have voiced their criticism of economic governance.
The future
The future of the Hungarian economy depends on fundamental reforms. Restoring the rule of law and fighting corruption are essential to regain access to EU funds. Meeting the conditions for euro adoption can provide a stable anchor for a new economic policy aimed at sustaining growth and improving competitiveness. Without the promotion of free competition and the development of high-value-added sectors, the Hungarian economy could remain trapped in middle-income countries.
Budapest’s baths have played an important role in the city’s economy and tourist appeal in recent years. They welcome more than 3.8 million visitors a year, making them one of Budapest’s most important sources of income. The year 2025 promises to be another milestone year, with several developments and renovations on the agenda, while keeping ticket prices affordable.
According to Világgazdaság, by 2024, admission prices to spas had risen by 10–12%, while next year’s planned increase will be only 5%, in line with inflation. Despite the rise in ticket prices, the season ticket (pass) system, which is popular with domestic visitors, is showing significant growth. The Zsigmondy Card, for example, has been a great success, with more than 22,000 units sold, offering significant discounts to visitors to the historic baths. This discount scheme has helped the baths to attract a wider audience while maintaining their affordability.
Record revenue and cost management
Budapest’s spas achieved outstanding financial results in 2024. In the first ten months of the year, they generated net revenues of HUF 24 billion (EUR 58.4 million), of which they made a profit of around HUF 5 billion (EUR 12.2 million). At the same time, rising costs—in particular a six-fold increase in water and sewerage charges—posed a significant challenge. The company managed to implement a 13.5% wage increase, which was aimed at retaining highly skilled employees.
2025: The year of bath renovations
The preservation and modernisation of the historic baths is a priority. A number of improvements are planned for the coming years, including the complete renovation of the Gellért Bath, which is scheduled for completion in 2025. The thermal section of the Széchenyi Baths will also undergo extensive technical maintenance, including the reconstruction of the ceiling.
Discussions have also begun on the operation of the Király Spa, which is state-owned but managed by the Municipality of Budapest. The values and traditions of the past will be preserved in the future, while modernisation will also meet today’s needs.
Budapest’s spas offer more than just a thermal experience. One of the most successful initiatives in recent years is Lumina Park on Palatinus Beach on Margaret Island, which offers a special experience in the form of a light park. In 2024, it opened with a ‘Fairytale Film Festival’ theme, where characters from well-known stories appear in unique lighting. The event is not only popular but also generates significant revenue during the winter season.
Special activities are also planned for the festive period. The historic baths had a shortened opening on the 24th of December, but all facilities are open from the 25th of December. The Rudas Spa, for example, will host New Year’s Eve parties and dinner programmes, and a ‘hangover day’ on the 1st of January will help guests relax.
Budapest’s baths are not only an integral part of the city’s cultural and tourist life, but also an important economic factor. The stability of ticket prices, the success of the season ticket system and continuous improvements ensure that these facilities will remain attractive destinations for domestic and international visitors in the future. The year 2025 will be a year of renovation, while the special attractions will further enrich Budapest’s spa culture.
This year, Forbes has once again compiled its list of the 50 richest Hungarians. While many of the names featured are already familiar, with their financial standings being no secret, a few newcomers have made their mark, securing higher positions than expected.
The Forbes list of the 50 richest Hungarians is once again headed by Hungarian Prime Minister Viktor Orbán’s childhood friend Lőrinc Mészáros, who boasts a fortune of more than HUF 1 trillion (EUR 2.44 billion) this year. His wealth has increased by more than 107%, driven by stock market transactions and public investments.
In 2023, Mészáros’ companies generated HUF 155 billion (EUR 378 million) in dividends, of which he directly raised HUF 73 billion (EUR 178 million). The Felcsút billionaire’s network of companies has expanded not only in Hungary but also in several countries in the region.
The top 10 richest Hungarians
The aggregate distribution of wealth in Hungary in 2024 will continue to show a significant concentration among the richest individuals on the Forbes list. The leader is still Lőrinc Mészáros, who is a major player in the Hungarian economy.
His soaring fortunes can be attributed to the success of Opus Global, as well as a number of investments in construction, agriculture and tourism. Others on the list have also achieved outstanding results in various industries, from finance to real estate development and online services.
Here is the list of the top 10 richest Hungarians:
1. Lőrinc Mészáros with HUF 1,241.8 billion (EUR 3.03 billion)
2. Sándor Csányi with HUF 684.8 billion (EUR 1.67 billion)
3. Zsolt Felcsuti with HUF 487.4 billion (EUR 1.19 billion)
4. Tibor Veres with HUF 473.3 billion (EUR 1.15 billion)
5. György Gattyán with HUF 364.2 billion (EUR 888 million)
6. László Szíjj with HUF 333.3 billion (EUR 813 million)
7. Dániel Jellinek with HUF 297.3 billion (EUR 725 million)
8. Gábor Széles with HUF 228.6 billion (EUR 557 million)
9. István Garancsi with HUF 226.2 billion (EUR 552 million)
10. Sándorné Demján and her family with HUF 225.2 billion (EUR 549 million)
The stakeholders include construction companies, banking and financial services, technology and media companies, all of which have a significant impact on the domestic economy.
This year, Erik Keszthelyi, whose wealth reaches HUF 100 billion (EUR 244 million), made his debut on the list. Keszthelyi has achieved success in the insurance sector and has a significant stake in Hungarikum Insurance Group. The owners of Hell Energy have also returned to the list, and after four years of legal battles, they are once again among the richest.
Other than Lőrinc Mészáros, István Tiborcz, the Prime Minister’s son-in-law, has also doubled his wealth in a year to HUF 151.5 billion (EUR 369 million), putting him in 15th place in the top 50. His main interests include the Gránit Bank and the BDPST luxury real estate business, which he manages jointly with his wife, Ráchel Orbán.
What could be the key to success?
While the growing wealth of the richest is impressive, in many cases the economic backdrop also includes state subsidies, privatisation and large dividend payments. This raises questions about the extent to which the Hungarian economy benefits from these wealth accumulations and the contribution of companies to sustainable development.
The list of the 50 richest Hungarians is not only a reflection of business success but also of the country’s economic structure. The growing disparities indicate that a significant share of economic opportunity is concentrated at the top, which could raise serious social and economic issues in the long term.
2025 will be a particularly important year for wages in the Hungarian economy. Wage increases, including a rise in the minimum wage, are expected to be broad-based across both the corporate and public sectors, with the aim of restoring the purchasing power of wages, particularly after the impact of inflation following the energy crisis in 2022.
In addition to wage increases, another positive development is that inflation could slow and even fall below 3% in the first months of the year, a level last seen in January 2021. This should help households to finally recover from the difficulties of recent years.
Changes in minimum wage
According to Világgazdaság, a key element of wage policy is the increase in the minimum wage and the guaranteed minimum wage. From 2025, the gross minimum wage will rise to HUF 290,800 (EUR 711), while the gross guaranteed minimum wage will increase to HUF 348,800 (EUR 852), resulting in a significant rise in net earnings.
This increase is part of a three-year wage agreement, by the end of which the minimum wage is expected to reach 50% of average gross earnings. By 2028, the minimum wage should reach €1,000 (HUF 409,000), and average gross earnings could approach €1 million (HUF 409 million). This will ensure stable wage growth in the long term, which could boost the economy as a whole.
After better-than-expected earnings growth last year, a slightly slower rate of wage growth—8–9%—is anticipated for next year. This aligns with increases in the minimum wage and the guaranteed minimum wage, along with a slowing inflationary environment.
It is important to note that median earnings, which provide a more realistic picture of earnings conditions, are growing even faster than the minimum wage. This reflects significant progress, especially at the lower end of the earnings scale. The purchasing power of wages is expected to increase by 4–5% by 2025, which should provide considerable relief to households after recent price rises.
The most affected
The government is addressing one of its biggest obligations by increasing the salaries of education workers. In the second phase of the three-year programme, teachers’ salaries will rise by an average of 21.2% from 1 January 2025, bringing the average teacher’s salary to HUF 844,000 (EUR 2,064) gross. The lowest salary for trainees will rise to HUF 640,900 (EUR 1,567) gross.
There is significant variation in salaries, with research teachers, for instance, earning up to HUF 1.78 million (EUR 4,352). The pay rises are designed to be sustainable in the long term; the government guarantees that teachers’ salaries will reach 80% of the average graduate salary by 2031, ensuring salaries are protected from inflation.
In the 2025 budget, the government has allocated HUF 675 billion (EUR 1.65 billion) for wage increases. For example, workers in the water sector will receive a 60% pay rise in three stages by 2027, with the first step being a 30% increase in 2025. A similar comprehensive settlement is planned for judges and judicial staff, with the salary base rising by 15%, from HUF 566,660 (EUR 1,385) to HUF 651,660 (EUR 1,593), from 2025. By the end of the three-year programme, judicial staff salaries could increase by up to 100%, and judges’ incomes could reach HUF 2.25 million (EUR 5,499).
One of the most successful wage improvement programmes in recent years has been in the health sector. Doctors’ salaries have increased significantly, with junior doctors now earning a gross salary of HUF 687,000 (EUR 1,679) and the most experienced doctors earning up to HUF 2.38 million (EUR 5,818). Nurses have received a two-stage pay rise, bringing the average gross salary of healthcare workers to HUF 841,000 (EUR 2,056) by 2024. These wage increases have made the healthcare sector the fourth-highest paid in the economy.
Future opportunities
For the government, 2025 will be a pivotal year for wage increases. The priority is to restore the purchasing power of earnings while maintaining economic stability, thereby creating a noticeably improved financial environment for households.
Overall, the increase in the minimum wage, the adjustment of teachers’ salaries, and additional support for judicial workers and the health sector represent significant progress. Combined with falling inflation and a stable economic environment, these developments should provide a new boost to the financial situation of Hungarian workers in 2025.
From the 1st of January 2025, the Hungarian government will introduce significant changes to the Migrant Workers Act, resulting in stricter rules for workers from non-EU countries. The changes are designed to ensure that guest workers can return to their home countries and to limit the scope of workers’ countries of origin.
According to the amendment, it is no longer sufficient for the country of origin of the guest workers to simply promise to take them back. The government is demanding a stronger guarantee that workers will actually leave Hungary when their permits expire.
As Telex reported, the list of countries of origin has also been substantially revised. While the list previously included countries such as the Philippines, Vietnam, Indonesia and Mongolia, the new rules mean that only two countries, Georgia and Armenia, are now eligible to send guest workers to Hungary. This effectively invalidates the previous list and narrows the possibilities for workers to come.
Maximum framework for guest workers from 2025
According to an official statement by the Hungarian Ministry of National Economy, the number of residence permits that can be issued will also be determined from 2025. This number will be capped at 35,000 per year, including both guest workers and residence permits for employment purposes. This move is intended to keep the number of guest workers under control and to adapt it to economic needs.
Government statements and industry reactions
At his end-of-year press conference, Prime Minister Viktor Orbán made it clear that the changes were not unexpected. He stressed that countries that have not undertaken to take back guest workers cannot expect Hungary to accept their workers from the 1st of January 2025. “Ten countries immediately fell off the list, maybe more,” Orbán stated, adding that the countries concerned had been informed in advance. The Prime Minister said that the tightening was in the country’s interest and there was no question of introducing it.
However, the government’s decision was not preceded by a broad consultation of businesses directly involved in the employment of guest workers. News of the tightening therefore came as a surprise to the business community. There had already been talk of the Hungarian government imposing an almost total ban on the employment of non-EU workers in Hungary, but there had been no meaningful consultation on the impact this might have on the economy and the businesses involved.
The importance of these changes
There are several reasons behind stricter regulation. On the one hand, the government is concerned with the protection and stability of the country’s labour market, and on the other hand, it is also focusing on social inclusion issues. Countries that do not ensure the readmission of guest workers will not be allowed to send workers to Hungary in the future, which clearly reflects a tightening of migration policy.
The new guest worker law introduces sweeping changes that severely restrict the countries of origin of workers, cap the number of permits that can be issued and ensure the return of workers to their home countries. While the decision is driven by strategic objectives, the changes may pose unexpected and significant challenges for operators and companies. How the government manages the feedback from economic operators and the labour market will be important in the coming period.
At his end-of-year press conference, the Hungarian Prime Minister Viktor Orbán highlighted a unique economic opportunity: Russia’s Lukoil is putting up for sale one of the most important oil refineries in the Balkans, Burgas Neftochim. Hungary’s MOL is also taking part in the bidding and, as the only EU bidder, the prime minister believes it has a good chance of success. This transaction could be a significant step for Hungary, not only economically but also geopolitically.
According to Telex, Burgas Neftochim is one of the largest and most modern oil refineries in the Balkans, capable of processing seven million tonnes of oil per year. The refinery uses mainly oil from the Black Sea, transported by tanker, and plays a strategic role in the region’s energy supply. Lukoil bought the plant in 1999 and has since made a number of improvements, but the company’s position in Bulgaria has declined in recent years.
If MOL is successful in acquiring the refinery, it would not only expand its interests in Hungary, Slovakia and Croatia but could also become a key player in the Balkans’ energy supply. The move would give the Hungarian company a strategic advantage in regional markets.
International competition and political challenges
MOL’s chances are boosted by the fact that the Hungarian company is the only EU bidder for the refinery, but the international field is strong: the UK-Catar consortium Oryx Global and London-based DL Hudson were previously seen in the press as the favourites. Although Lukoil has not formally negotiated with them, Bulgarian media have reported that American and Azeri investors have also expressed interest in the deal. The race is not only economic but also political, as the success of the deal depends on the decision of the Bulgarian authorities and the reduction of Russian economic influence in the region.
Bulgaria has a long history of domestic political crises. In addition to parliamentary instability and frequent changes of government, the country’s economic and energy situation is uncertain. Currently, the most prominent political figures are the President of the Republic, Rumen Radev, and the leader of the GERB-SDS coalition, Boyko Borisov. The two politicians have different positions: while Radev is more pro-Russian, Borisov is seen as a supporter of Western integration.
This political dichotomy is also evident in the case of Burgas Neftochim. Viktor Orbán’s support suggests that Hungary sees the acquisition of the Bulgarian refinery as a serious opportunity, but the local authorities’ decision to approve the deal is not without political considerations.
Lukoil in Bulgaria and new opportunities for MOL
Russia’s Lukoil has been a dominant player in Bulgaria for decades, especially after securing long-term port concession contracts for oil transport routes in the Black Sea. In recent years, however, the Bulgarian authorities have tightened their grip on the Russian company. Lukoil has been hit with substantial tax fines, and the Bulgarian government’s actions have made it clear that it is trying to squeeze the company out of the market.
The acquisition of Burgas Neftochim could open up new supply opportunities for MOL. Owning a seaport infrastructure would be a major strategic advantage, as it would allow the Hungarian company to diversify its oil supply routes. Although transport through the Bosphorus is difficult, the refinery would be able to process a significant part of the Kazakh, Saudi or Iraqi oil coming through the Black Sea.
Some experts say that in the long term it would be worth considering the construction of a Bulgarian-Serbian-Hungarian oil pipeline, which would offer a more stable transport alternative. For MOL, such a move would not only improve security of supply, but would also allow further market expansion in the Balkans and Central Europe.
Ending Lukoil’s local dominance could also be important from a geopolitical perspective. The reduction of the Russian economic presence in Bulgaria could lead to increased stability in the region, while MOL’s involvement could strengthen EU interests. Although public opinion in Bulgaria is mixed on the perception of Hungarian political involvement, MOL’s EU background may make it more favourably received than another Russian or foreign interest.
Prime Minister Viktor Orbán has expressed condolences to the German chancellor over the terrorist attack carried out in Magdeburg.
“I would like to express my deepest condolences to Bundeskanzler Olaf Scholz and the people of Germany upon the heinous terrorist attack committed at the Christmas market in Magdeburg,” Orbán said in an entry posted on X on Friday evening. “We pray for the families of the victims,” he said.
Orbán: Brussels wants to turn Hungary into Magdeburg
Viktor Orbán, addressing a year-end international press conference on Saturday, drew a connection between illegal migration and acts of terrorism, referring to the recent tragedy at the Magdeburg Christmas market in Germany and declaring that Brussels wanted to “turn Hungary into Magdeburg”, and force risky migration regulations on the country, which “must not be allowed”.
The prime minister started the press conference by expressing his condolences to Germany and the families of the victims of a terrorist attack at a Christmas market in Magdeburg. He said there was “no doubt” of a connection between illegal migration and terrorist acts but many had tried to deny this, “even though it is a fact that nothing like [such attacks] had happened before” Europe’s migration crisis. He said the lesson for Hungary was that it must carry on resisting being changed into “a world where something like this can happen”.
Romania and Bulgaria’s accession to Schengen
The prime minister said the accession of Romania and Bulgaria to the Schengen zone benefitted the two countries as well as Hungary. But it also helped to solve the “European problem” of some member states “blocking enlargement for 13 years”, he added.
Dissolving the border with Romania will provide new opportunities for Hungary, he said, noting the prospect of more border crossings, shorter routes and improvements to the quality of life in the border region. Also, Hungary will gradually withdraw all border guards and police from the relevant border, which would benefit law enforcement now struggling with a shortage of personnel, he added.
Competitiveness
The prime minister noted that the competitiveness pact adopted at the Budapest EU summit set deadlines for the next six months for managing how to stop and reverse the deterioration of the bloc’s competitiveness. The document was unprecedented, he said, and “a serious achievement” in terms of reaching a consensus on how to boost European market efficiency, capital and investments in a period which had seen the bloc preferring to deal with social issues and moving leftwards politically.
Orbán said it was also important that the 27 agricultural ministers worked out a joint position on post-2027 agricultural policy. He said “time has proven right” Hungary’s determination to show courage and take on debates, even on issues that had seemed intractable. Before Hungary’s presidency, no one would have foreseen Schengen enlargement, the competitiveness pact, a common vision of agricultural ministers for the future of European agriculture, Orbán said. “All of this has come to pass,” he declared.
US presidential election
The prime minister also said that after the US presidential election, the European elite “took no notice of the new reality”. Yet the world will face massive changes when Donald Trump takes office on Jan 20, even if he puts into practice only a fraction of what he has planned, he added.
He said that If Trump’s signalling regarding the balance of US-European trade, which was beneficial to Europe and detrimental to America, were not taken seriously, then it would be “tariffs all the way”. Also, the Western world’s attitude to migration, family protection and traditional values and “the gender issue” would be “completely different”. Economic relations, war and the resulting sanctions, likewise, would be “completely different”, he added.
Orbán hails ’successful’ EU presidency
Viktor Orbán rated Hungary’s presidency of the Council of the European Union a success at an international press conference on Saturday, adding that even “their opponents” had acknowledged both the “quantity and the quality” of the work done.
He said the lesson for Hungary was that it must carry on resisting being changed into “a world where something like this can happen”. Concerning Hungary’s EU presidency and referring to suggestions that Hungary was isolated, Orbán said: “I’ve never seen isolation like it in my life; half the world was here”, adding that Hungary had organised the biggest diplomatic event in its history.
He said the Hungarian presidency had applied a policy-based, rather than a “bureaucratic” approach, noting that its focus had been on the Russia-Ukraine war, the Schengen area and competitiveness. As regards the war, he said the presidency had “no room for manoeuvre” because of the “serious and deep disagreements” in the EU over the strategy to be adopted in connection with the conflict. Despite this, he added, the gravity of the situation had warranted Hungary’s launch of a peace mission and push for peace.
“We set these apart from the EU presidency, which led to some debates, but today no one will dispute that Hungary has a right — and we believe it has a duty — to launch a peace mission,” Orbán said.
Orbán: Big changes ahead, moving from wartime to peace
Viktor Orbán, addressing an international press conference, said that in light of the US election, the world was on the verge of “a new reality” and “new things” were in the pipeline. “Very big changes are ahead of us; we’re moving from wartime to an era of peace,” he said.
Europe should wake up to the new reality, he said, adding that “new things will happen, things that were never even dreamt of, except maybe by Hungarians.” If the war in Ukraine comes to an end, sanctions “that are tormenting the European economy” can be lifted, the prime minister said, adding that Hungary’s standpoint was that sanctions should be lifted as soon as possible, and then the period of inflation “will end, and economic recovery can finally begin, and prosperity can return to Europe.”
Orbán: 1,252,000 Hungarians have returned National Consultation questionnaires
Fully 1,252,000 Hungarians returned National Consultation questionnaires on the government’s new economic policy, Viktor Orbán noted, adding that the strong response suggested “there’s enthusiasm for” public life in Hungary.
The new economic policy, trade neutrality and the strategy of connectivity were the main topics of the public survey, Orbán noted. He said the keen response was “very important to the government”. “This is our foundation; it’s what supports us,” he added.
Policies include providing support to employers, so in turn, they can help young people to pay their rent and mortgages, while small businesses can receive capital injections. Also, the biggest programme in Hungary’s history to increase wages will take place, with a 40 percent increase in the minimum wage implemented over the space of three years, the prime minister said.
As well as university students, young employees will also receive support, he said. Further, investments “of national economic significance” will be set in motion over the next year, which he called an “important development”.
2025 will be a great year for the Hungarian economy, Orbán said. “New times are coming, which we noticed early, and started praparing in time,” he said. “We can win in the new era, an era of peace, because we will start from a good starting position. Those who are still dealing with the era of war will be left behind,” he added.
“We have good hope that 2025 will already be about Hungary winning the era of peace,” Orbán said. The government has not given up its plans to carry the migrants by buses to Brussels, he said, asking the competent minister to ensure that “the buses should keep warming up their engines”. He said the situation could arise at any moment that “they can only respond in one way to a move from Brussels,” and that is by giving migrants one-way tickets to Brussels by train or by bus.
He said this can be done legally, and this would not be provocation for its own sake but a clear sign that Hungary would defend itself. He added that the government had hired a prestigious law firm through which Hungary will sue Brussels and claim back the money that it lost.
Orbán said joining the euro zone was not in his mind among the tools to stabilise the forint’s exchange rate. Euro zone membership undoubtedly brings stability but it stifles growth, takes away the opportunity for development, he added, suggesting that Hungary retain the opportunity for faster growth, for which a national currency is needed. He said the Hungarian currency was highly sensitive to global changes, which is never good, and these fluctuations were unnatural.
On the budget deficit, he indicated that a deficit of 4.5 percent is targeted for this year, and 3.7 percent for next year, and the deficit should definitely be kept under 4 percent. He argued that it was very difficult to manage a budget deficit of over 3 percent, that would mean the country remanining on a “continuous debt path”.
He said that it should be Hungary’s strategic goal to reduce the budget deficit and the state debt and sooner or later move into a creditor position, “so that we do not go to others for money, but others come to us”. He also noted that he had never been a supporter of the kind of economic stimulus that carried financial risk, for example, of the budget deficit shooting up or the previously planned balance path being overturned.
He recalled that Fidesz had probably won every election in a way that the budget deficit in the election year was lower than in the preceding year, adding that he considered this a serious professional feat. Hungary must always avoid political and economic adventures that would lead to a collapse of financial stability. This idea is also embodied in the person of the new finance minister, he said.
The government’s job is not to deal with the opposition, that should be left to the parties, he said. The government’s job is to deal with the country, the problems, the challenges, the people. Orbán said he would not like the emergence of new political styles and tools in politics to divert the Hungarian government’s attention from its tasks and duties. This is why he would not take part in such debates, he said, adding that he would never argue with people whose masters are in Brussels because he had an argument with Brussels.
Orbán said it had been his destination for many years to have the Hungarian opposition led by Brussels’ agents. This has been so since Hungary announced that it had its own path and was willing to take on the debates with Brussels. Since then, at every election, he could see that everything was being done in Brussels to achieve a change of government in Hungary and they never denied this.
Regarding the elections, he said his experience had shown that the one who remained calm and composed and “did not burden” the electoral system for at least a year before the elections always did well. Hungary’s election laws stipulate how electoral districts should be shaped based on demographic data; “it is not up to the discretion of the parliamentary majority,” Orbán said.
Orbán said “proposals suggesting that parliament should exceed the modification stipulated by law … were removed in the debate, and only the legally necessary changes have been made.” He also added that the government was not preparing to introduce further changes to the electoral system. Answering a question, Orbán said children’s homes need to be granted sufficient financing to ensure “safe, healthy, and high quality food” to their dwellers. The government “does not economise on children”, he added.
Meanwhile, the prime minister highlighted outgoing national bank governnor Gyorgy Matolcsy as an outstanding economic policy expert, that had “always made sure that the resources to finance welfare, health, and education services were in place”. He added that the budget was “in order” in Mihaly Varga’s finance ministry, and said he hoped it would remain so under Marton Nagy, the incoming minister.
“We always have money for the areas that require it most,” Orbán said, and mentioned railway stations for example. Railway services will continue to be provided by the state, he said, adding that private capital would be involved to run cafeterias and shops at railway stations. The prime minister said the Hungarian economy was competitive, but added that it had its problems and energy was the “Achilles-heel”.
An increase in energy prices caused by the war in Ukraine and the sanctions heavily impacted Hungary’s competitiveness, he said, adding that “10 billion euros have evaporated” from the Hungarian economy. One of the most important task for the industrial policy is to ensure cheap energy resources, he said.
Answering a question concerning the exchange rate of the national currency, Orbán said the rate was affected by “innumerable factors” including speculation, government performance, the general financial situation, stability, the budget deficit and the state of other currencies.
He said fluctuations in the exchange rate were more impacted by individual factors than by the actual state of the Hungarian economy. “It is not possible that there is a 10-15 forint drop or increase, while the economy stays the same … I don’t think the structure of the Hungarian economy could change from Monday to Thursday.”
On another subject, Orbán warned that Ukraine’s possible joining the EU could destroy the Hungarian and even the European agriculture. That is why agrarian countries of the bloc are forming a “strong alliance” aimed at “rationalising” Ukraine’s approaching the EU “so that we are not killed” by imports from that country, Orban said.
Concerning guest workers in Hungary, Orbán said regulations had been made to allow for an opportunity to expel guest workers from the country, and “allowed each country sending workers to Hungary some time to pass their own legislation ensuring return”. He said Hungary would not receive guest workers from countries failing to pass such legislation or failing to sign a relevant agreement with Hungary, starting on January 1. Under the changes guest workers from “ten or so” countries will not be received in Hungary from January 1, he said.
Concerning his peace mission, Orbán said he could “hardly wait for somebody to take over”, adding that it would happen when the new US president were inaugurated. He added that the mission was above Hungary’s means and “Donald Trump’s entry will restore the correct order of things.”
On the subject of community funding and Hungary’s possible losing of 400 billion forints, Orbán said “Hungary will not lose out on any resources … one loses a handkerchief, not their resources … it is not possible.” He said the government would “secure the funds due to Hungary”. “Hungary will get all funds it is entitled to,” he added.
Referring to Poland’s Mateusz Morawiecki, the new leader of European Conservatives, Orbán said he had had a decade-long friendship with him, adding that they had had talks since Morawiecki’s election. Orbán said his Patriots group and Conservatives were “different camps” but they saw eye to eye on major issues and the two groups could even build institutional cooperation in the long run.
“When that happens we will open a bottle of champagne and overcome the Socialists in the European Parliament,” Orbán said. “When we have grown large and have greater gravity, we’ll accept parties from the European People’s Party, and we’ll be the greatest,” he added.
Concerning his visit to Bulgaria the previous day, Orbán said energy deliveries to Hungary via Ukraine were going to get more dificult and it was better to assume that nothing would come from there. With the help of Bulgaria and Romania, in cooperation with them, Hungary has the routes and the resources to ensure that Hungarian households and the economy do not suffer, he said.
Fielding another question, he said the government would not give up its energy procurement plans, it is negotiating with both the Russians and the Ukrainians. He noted that Russia’s Lukoil wanted to sell one of its refineries in an open tender, and Hungarian oil and gas company MOL is one of the seven bidders, as the only European Union company. The decision will be taken by the Bulgarians, he added.
In Romania, MVM has indeed bought out one of E.ON’s companies, he confirmed to another question, adding that there were unclear issues and the Romanian prime minister also suggested that a working group be set up to clarify these.
On the Romanian presidential election, he said he believed Romania had acquired very valuable knowledge. “They know something that we don’t, something happened there that hasn’t happened here yet,” he said. Orbán said he had asked the Romanians to hand over all the information, and he received a promise to do so from the Romanian prime minister, after the investigations were concluded.
Orbán said he did not want to raise the issue of the political asylum of former Polish justice minister Marcin Romanowski to a prime ministerial level. He said his aim was to keep Hungary’s conflicts with Poland at a manageable level, so he would not comment on the Polish rule of law situation either.
The decision on granting political asylum has a procedure that must be followed, he said. A study was prepared that fully revealed what the situation was in Poland, and the minister who has the right to decide on political asylum made a decision based on this, he added.
On Hungarian-Polish relations, he said the two countries had common interests, especially in Brussels, that neither country can enforce separately, only together. This is an interstate relationship that must be saved from the world of party relations because the latter are in a terrible state with the Polish governing party at the moment, he said.
On the fact that Hungary granted a loan to North Macedonia with very favourable conditions, the prime minister said it was Hungary’s interest that there should be political stability in the region south of it. He said the government also gave a loan to Bosnia and negotiated with Albania as well.
On the situation in Gaza, he said it was unacceptable that people should be held in cellars as hostages, and on Syria, he said that a change had begun but there was as yet no one in control of the processes. Several countries must cooperate here so that the recent developments will not lead to a second terrorist state but to consolidation, he said.
On a possible expansion of the NATO budget, Orbán said it was already tough on Hungary that defence spending had to be raised over 2 percent of GDP, adding that he would like to see conditions allowing this to be reduced but the world was moving in the opposite direction.
This 2 percent has been treated by everyone as a matter of loyalty in the recent period, he said, so Hungary had to meet this. If the 2 percent had to be increased, that would “shoot the Hungarian economy in the lungs,” he said. Even if Hungary did come under pressure to do this, Orbán said he could only conceive of a staggered increase, adding that he would like to avoid this, and he had not yet talked about the issue with President-elect Donald Trump.
Answering a question on the national consultation, Orbán said it was clear that the Hungarian public was the most interested in economic issues above anything else. He said the result of the national consultation confirmed the government’s work and made it easier and simpler, so the consultations will be continued.
The prime minister dismissed it as a rumour that under construction minister Janos Lazar’s direction, the Information Office kept the staff of the European Union’s Anti-Fraud Office under surveillance.
Fielding a question, he said the renovated building of the Finance Ministry would be handed over next February, and the Interior Ministry would move there (as the Finance Ministry would merge into the National Economy ministry from January). The government is also considering the possibility of the Ministry of Defence moving into the current building of the Interior Ministry, he added.
He noted that the state currently paid 60 billion forints a year on renting government properties, and it is unhealthy that the state should be present on this market with such weight. The aim is to have state institutions in their own state-owned properties in the long term, he said, adding that this was not as important as the issue of hospitals, education or justice, but this must also be taken care of. He said it was a financially sensible solution.
Concerning a question about his family’s assets, Orbán said his asset declarations were public, and his family had always observed the relevant law. “My life is an open book; I am always at the public’s disposal,” he said. Orbán said the prime minister was not supposed to deal with business but “with public affairs only”.
Answering another question about the ramifications of a scandal around a presidential pardon earlier this year, Orbán suggested that it had not impacted his Fidesz party’s position, with Fidesz garnering 45 percent of the votes in the European parliamentary elections.
He also suggested that a dispute that broke out within the Reformed Church after the scandal was their internal affair. He also added that decision makers must not pass responsibility for their own moves onto their advisors. He said advisors should take “spiritual responsibility” for possible incorrect advice “but that is no longer our business.”
Orbán said religious organisations operated separately from the state, without any state intervention. “The church discussed and settled this case within their own circles and the atmosphere may have calmed down,” he said.
The landscape for guest workers in Hungary is undergoing a significant shift as economic challenges and stricter regulations reshape labour demand. While the influx of foreign workers has slowed, key sectors like logistics and hospitality still rely heavily on overseas labour, highlighting the growing complexities of Hungary’s workforce dynamics.
Number of guest workers in Hungary faces a major shift
As Portfolio reports, the influx of guest workers in Hungary has shown a notable shift this year, as economic challenges have caused the steady rise in numbers to plateau. According to the Hungarian Central Statistical Office (KSH), nearly 100,000 foreign workers were recorded in autumn, reflecting a decrease in growth.
Magdolna Mihályi, managing owner of Jobtain HR Services Ltd., explained that while the import of foreign workers continues, it has slowed due to a 5% drop in industrial production compared to last year. Factors contributing to this slowdown include a recession in the automotive sector, reduced investment, and stricter government regulations on foreign labour assessments. Additionally, Hungarian labour reserves are being mobilised more actively, further influencing the demand for foreign workers.
What is fueling the change?
Magdolna Mihályi of Jobtain HR Services Ltd. highlighted several factors behind the trend described above, including a sharp decline in investments, a recession in the automotive sector, and stricter government regulations on foreign labour assessments. Similarly, József Nógrádi, Commercial Director of Trenkwalder, noted a 25% drop in the inflow of foreign workers compared to last year, attributing it to European economic stagnation and tighter Hungarian policies. With domestic worker recruitment on the rise and existing guest workers filling critical roles, demand for foreign labour has fallen by 30% compared to the previous year. Stricter regulations have also improved transparency and eliminated exploitative practices, contributing to a more regulated labour market.
Struggling sectors
The demand for guest workers in Hungary is shifting as economic conditions vary across industries. While the automotive and construction sectors face redundancies, logistics, transport, and food continue to attract workers, particularly from the Philippines, Vietnam, India, and Indonesia. Despite efforts to mobilise domestic workers, labour shortages persist in hospitality, IT services, and waste processing. Experts note that Hungary’s declining working-age population and nearly full employment make foreign labour indispensable, though future demand depends on economic recovery and government policies. With strict regulations, the number of guest workers in Hungary is expected to stabilise around 150,000.
Analysts do not expect the euro exchange rate to return to levels below 400 forints in the longer term, and trends suggest that it could reach a level of around 415-420 forints by the end of 2025.
According to Economx, the weak forint has a significant impact on consumer confidence, which is exacerbated by high inflation and expensive food prices. Although inflation is expected to moderate to 3.8% in 2024, households will continue to face declining purchasing power. This trend reflects the steady weakening of the forint in recent years, mainly due to high inflation, low consumer confidence and external economic and political uncertainties. The weak forint is also leading to further increases in the prices of imported goods, putting sustained pressure on household spending.
Inflation, which exceeded 20% in 2023, may fall to 3.8% in 2024, but price levels will remain persistently high. The weakening of the forint will further increase the cost of imported goods, including energy and food, which could generate further inflationary pressures. This will slow the recovery of purchasing power and undermine the stability of the forint.
The fall of Premium Hungarian Government Securities
The fall in the yields of Premium Hungarian Government Securities may also have an indirect impact on the forint. Retail investors may shift their money into other assets, such as government bonds issued in foreign currencies or foreign investments. This could reduce demand for the forint, causing further weakening. The central government debt management agency may try to introduce more attractive interest rate conditions, but higher yields on government bonds in the market could still provide strong competition.
The forint’s link to the equity market and the global economic situation
The undervaluation of the Hungarian equity market offers investors new opportunities, but the shift here does not necessarily strengthen the forint. Indeed, the increase in demand for equities is mainly driven by domestic investment, while inflows of foreign capital remain uncertain. The position of OTP, Mol and Richter shares, especially given their exposure to the Russian market, remains vulnerable to international economic influences.
Global economic trends, such as the policies of Donald Trump’s second presidential term, may indirectly influence the forint exchange rate. The US-China tariff war and protectionist US economic policies could put pressure on emerging markets, including Hungary. Problems in the European automotive industry could also affect Hungarian export performance, which could further reduce the stability of the Hungarian forint.
The outlook for the Hungarian forint is weakening in the years ahead, mainly influenced by domestic economic problems, challenges in the international environment and household investment decisions. Persistent exchange rate depreciation and inflationary pressures will further complicate the achievement of economic stability, while global trends and policy decisions will pose new risks. Coordinated action between fiscal and economic policies and the mitigation of external and internal risks would be key to improving the position of the Hungarian forint.
The Hungarian government is poised to introduce substantial reforms to the rules governing the implementation of Hungary’s Recovery and Resilience Plan, aiming to enhance the transparency of financial and administrative processes while improving access to EU funds.
According to Portfolio, the proposed measures span a broad range of areas, including project financing structures and oversight mechanisms. These reforms are expected to have far-reaching implications for both the Recovery EU Funds and the Cohesion Framework.
One of the most important changes is that the Restoration Fund now also covers investments based on projects financed from the central budget. This innovation means that the measures covered by the Restoration Fund will also be subject to the strict rules, even if they are not directly financed by EU funds.
The proposal redefines the concept of financial instruments to bring them into line with the current EU legal framework. The new rules will allow the combined use of grants, which will increase flexibility in the use of EU funds. The funds concerned are the European Regional Development Fund, the Cohesion Fund and the European Social Fund Plus.
Control and transparency
The Internal Audit and Integrity Directorate will also have a broader range of tasks, with a greater role in identifying conflicts of interest and conducting risk-based audits. To support this process, the ARACHNE risk assessment tool will be introduced to help identify potential irregularities in a data-driven manner.
This is partly in response to the European Commission’s expectations to prevent financial fraud and detect irregularities quickly. The rules for setting market prices are also being revised to further increase transparency. For instance, if there are not enough bids in a public procurement procedure, the shortfall can be made through online bidding.
The role of EU Funds
The Regulation allows certain projects to be financed by the Cohesion Fund in the context of operational programmes for the period 2021-2027. This measure could be particularly important if there are obstacles to the absorption of RRF funds, as the deadline for the absorption of such funds is strictly limited to the summer of 2026.
The transfer of projects is subject to strict conditions to ensure that the original objectives and indicators are not compromised. This mechanism can provide a safety net to avoid loss of resources.
The proposal also clarifies a number of technical details. For example, the accuracy of data in the public accounts would be ensured through continuous information to the tax authorities, while the preparation of aid payments would be subject to stricter controls. Control procedures for advance payments would also be fine-tuned to reduce risks.
According to the rules, the new regulation will have a retroactive effect and will enter into force five days after it has been published. This means that the changes will also apply to pending cases.
The next steps
The draft regulation has been published for public consultation until the 17th of December. This will give stakeholders the opportunity to comment on the proposed changes. The government’s aim is to contribute to a faster and more efficient use of EU funds by clarifying the rules and increasing the flexibility of the legal framework while meeting the strict requirements of the EU.
The new rules will not only support more efficient implementation of current projects but will also help Hungary to be better prepared for future EU challenges and opportunities. The measures promise transparency, flexibility and optimal use of resources and EU funds.
Mercedes-Benz will be shutting down production at its base in Kecskemét (C Hungary) for a winter break from December 18 until January 20, 2025, the local unit of the German car maker said on Thursday.
Mercedes-Benz shuts down for a month
Mercedes-Benz Manufacturing Hungary said that during the break the plant is undergoing significant transformation work in preparation for the production of new models based on the MMA and MB.EA platforms.
The company said Mercedes-Benz is continuously optimizing its production network in order to operate at optimal capacity and to respond to fluctuations in demand using the available flexibility.
The Mercedes-Benz Group achieved stable sales in the third quarter despite model changes, a challenging market environment and tough competition, especially in China, it added.
Mercedes-Benz Manufacturing Hungary had EUR 5.1bn revenue last year. Headcount at the unit averaged 4,477 in 2023.
Hungary’s tax laws offer various tax benefits to eligible residents, with significant updates recently affecting third-country nationals. While the family tax allowance was accessible to many, offering substantial support based on the number of dependants, changes coming into effect from 2025 will exclude third-country nationals from several key allowances.
Tax benefits in Hungary
In Hungary, third-country nationals were eligible for certain tax benefits, particularly the family tax allowance, provided they met specific conditions. To qualify, at least 75% of their annual income had to be taxable in Hungary, and they should not have received similar benefits from another country for the same period. The family tax allowance was available for dependants, including children eligible for family support and unborn children during pregnancy.
The allowance amount varied based on the number of dependants, with increased benefits for permanently disabled or severely ill children. This allowance could be claimed either through an employer’s tax advance declaration or during the annual tax return process. However, since August 14, 2023, third-country nationals are no longer eligible for the social contribution tax allowance that employers could previously claim for newly entering the labour market.
Big changes in 2025
The recent amendments to the Hungarian income tax laws, as outlined in the Magyar Közlöny, introduced several significant changes affecting third-country nationals. One of the key updates is related to the family tax allowance, which has been adjusted to provide increased financial support based on the number of dependants. For instance, the allowance for one dependant rose to HUF 133,340 (EUR 325.25), while for two dependants, it increased to HUF 266,660 (EUR 650.47), and for three or more dependants, it reached HUF 440,000 (EUR 1,073.30) per month.
The amendments specified that both EEA citizens and citizens from non-EEA countries bordering Hungary are eligible for these tax benefits. However, it is important to note that third-country nationals are no longer eligible for social contribution tax allowances that were previously available to employers hiring new workers from outside the EU. From 1 January 2025, they will no longer be eligible for the tax credit for starting a life. However, it is still not clear whether third-country nationals would be still eligible for the family tax allowance.
We will keep our readers updated on the topic as we gain more information.
Many people think of happiness as an abstract feeling, but in reality, there are many concrete factors that influence how satisfied we are with our lives. NN Longevity’s research shows that happiness levels in Hungary are not only low but have continued to decline in recent years.
The results of the NN Longevity research show that there is a strong link between happiness and financial security. The level of happiness among the Hungarian population is low not only in comparison with Western Europe but also with neighbouring countries. The average score on a 10-point scale is only 5.4 in Hungary, below 6.4 in Romania, for instance.
According to Pénzcentrum, this figure suggests that the state of mind of the country’s inhabitants is among the worst in the region. The picture is even more pessimistic when it comes to the outlook for future happiness, whereas Hungary also comes bottom. While Hungarian respondents expect to be 5.9 points happier in ten years’ time, the figure is much higher in the rest of the region, with Romanians, for example, predicting a score of 7.
Different factors in happiness
The research shows that happiness does not simply decline with age. Although young people aged 18-34 are the happiest, with an average score of 5.8, they are not followed by middle-aged people. Those aged 50-64 were slightly happier than those aged 35-49, who scored an average of 5.3.
However, this group, which should traditionally be at the height of their careers and financial stability, is carrying a heavier burden than expected. The least happy generation is the over 65s, with a happiness score of just 5.2. This finding suggests that financial and health insecurity in old age has a major impact on quality of life.
The analysis also shows that financial stability plays a crucial role in happiness. Hungarian respondents who have at least six months’ savings feel significantly happier than those who have no savings. A sense of financial insecurity significantly reduces happiness levels: those with no more than three months’ savings scored an average of 4.8 points, while those with six months’ savings scored 6.4 points.
According to Portfolio, respondents also showed a significant difference in their self-assessment, with those with money set aside giving themselves an average score of 6.7, compared to an average of 5.1 for those without a reserve. This suggests that financial stability is a key determinant not only of financial welfare but also of psychological well-being.
The research also revealed that for Hungarians, a happy and meaningful life is based on several components, one of the most important of which, according to respondents, is reducing stress and achieving calmness, which is essential for a balanced life. They also highlighted the importance of spending time with loved ones, which strengthens emotional bonds, and a healthy lifestyle, which is central to maintaining physical and mental well-being.
Financial factors are also crucial: current financial well-being and future financial security are essential for people to feel balanced and satisfied. Longer life expectancy places particular emphasis on preparing for the future, as financial security in old age is essential for a comfortable life.
The challenges of retirement
According to the survey results, 63% of Hungarians consider financial security to be an essential condition for retirement. However, the majority of respondents feel that they are not doing enough to create financial security for their retirement. Only one in five Hungarians save regularly for retirement, suggesting that long-term financial planning remains a low priority for the majority of people. This low propensity to save is likely to exacerbate concerns about the future and contribute to Hungarians’ lowest levels of happiness in the region.
NN Longevity’s research has clearly shown that happiness is not solely dependent on subjective factors. Financial stability, stress reduction, a healthy lifestyle and the cultivation of social relationships are all essential elements that can contribute to a balanced and satisfying life. In the case of Hungary, it would be particularly important for people to place more emphasis on long-term financial planning, as this has a major impact not only on current but also on future levels of happiness.
Hungarian-American political relations are set to enter a “golden age” with the election of Donald Trump as the next US president, and relations between Hungary and the US could be better than ever before, the foreign minister said on Tuesday.
Hungarian-American political relations to have a bright future
The ministry cited Péter Szijjártó telling a joint press conference with his Georgian counterpart in response to a question about his US visit on the previous day that they had held lengthy talks with President-elect Trump, designate National Security Advisor Mike Waltz, and designate Co-Chair of the Department of Government Efficiency Elon Musk lasting about three hours.
“Of course we also congratulated the president-elect because this was the first in-person meeting between the prime minister and the president-elect since the election,” he added.
“The prime minister and the president-elect maintained relations also during the time when Donald Trump was not the president, during the election campaign, and they have talked on the phone several times since,” Szijjártó said. “It is completely natural that they hold consultations regularly.”
Szijjártó said that what further increased the importance of the meeting was that as a result of the transformation of the global economy, digitalisation and AI could play crucial roles in determining a country’s future place in the global economy. Musk and the global empire of companies linked to him play a serious role in spreading new technology, he added.
Szijjártó also said that currently there was an opportunity for better than ever political relations to develop between Hungary and the US.
He added that it was important that until January 20, 2025, nobody in the US or Europe should make irresponsible decisions that could make it impossible to create peace and that would set off irreversible developments.
Considering that the war is still ongoing, the efforts of Hungary’s peace mission must be enhanced, he said. “Last week the prime minister visited the Holy Father. I was in Moscow, in Washington, and held meetings in Malta. Now we travelled to Florida with the prime minister and at least two more events will take place this week that form part of the peace mission, one tomorrow and another one the day after tomorrow,” he said.
National Economy Minister Márton Nagy said 2025 would be a “rebound” year of “economic recovery”, supported by a “peacetime budget”, testifying before parliament’s economy committee on Tuesday.
National Economy Minister expects economic recovery in 2025
Nagy said the government had responded successfully to the crises of the past five years: the pandemic, the energy crisis caused by the war and the economic downturn in Germany.
In light of the changed economic circumstances, the government has launched an economic policy action plan, founded on a policy of economic neutrality, that aims to aid the domestic recovery and lift GDP growth over 3pc from 2025, he added.
Nagy said that action plan would pump HUF 1,400bn into the business sector and leave households with more than HUF 2,800bn.
Nagy said tourism and retail data indicated a recovery of domestic consumption in 2024 that would continue in 2025. He added that real wages could grow 9pc this year, while the employment rate stood at 84pc, close to full employment.
Nagy said the construction sector would bounce back, with an order stock up 40pc and government measures set to lift the housing market. He added that home builds could double to 25,000 next year, still under the 40,000-unit potential of the local construction sector.
Nagy blamed Berlin’s overly disciplined fiscal policy and spending on ideologically important goals, rather than economic development, for the downturn in Germany. He added that the German government’s decision to roll back EV subsidies was also damaging.
Fielding questions, Nagy said dormitories with capacity for 13,000-20,000 students could be built in a student quarter in a brownfield area in the south of the capital. The government aims to keep the number of beds reserved for foreign students under 30pc, he added.
Nagy said the state would recoup the price it paid for a controlling stake in Liszt Ferenc operator Budapest Airport in 15 years.
The number of Hungarians living in Austria has increased significantly in recent years, and the number of Hungarians in Austria could reach more than 100,000 by early 2024. Reasons include better job opportunities, a more stable healthcare system and higher incomes.
In an interview with Szeretlek Magyarország, the Császár couple explained their decision to move to Austria: They decided to move because of their child’s health problems, as they could not find adequate care in Hungary. According to them, the Austrian healthcare system is so advanced and reliable that their child is already receiving the treatment he needs.
The basics of living in Austria
In addition to the healthcare system and higher wages, cost coverage is an important consideration in Austria. For instance, a family of three must have an income of EUR 2,000 to obtain a residence permit, which ensures that the family can live on its own. Rental prices are relatively similar in the countryside and in Vienna, usually between EUR 600 and EUR 800, which includes a share of the rent. Car maintenance, internet and telephone costs are also considerable, but two earners can live comfortably.
In terms of food prices, meat and services are more expensive than in Hungary, but the difference in quality makes it worthwhile for many. Rental prices in eastern Austria and western Hungary are converging, so some families are moving to areas close to the border.
When working in Austria, German language skills are a priority, especially for those looking for graduate jobs. Although English may be sufficient for certain professions, such as programming or medicine, it is mainly spoken in Vienna. In rural areas, German is almost essential. There is less demand for language skills in catering and in lower-skilled jobs such as cleaning or dishwashing, but even here, at least a basic knowledge of the language comes as an advantage.
The situation is somewhat easier for skilled workers, as there is a high demand for this type of labour. They can find employment without language skills, as practical skills predominate. Factory workers working three shifts can earn up to €2,000, well above what they can earn at home.
Hungarian Communities and Integration
Austrian society is basically inclusive and does not discriminate between nationalities. This is partly due to the fact that the culture and customs of Hungarians are in many ways similar to those of Austrians, which facilitates integration. Hungarian communities are active, with many Hungarians living in small towns and schools close to the border. Hungarian language assistance is also available in educational institutions and government offices.
A good example of the cohesiveness of Hungarians in Austria is the Hungarians in Austria website and related Facebook group, set up by the Császár couple. The site offers practical advice and helps people navigate the Austrian system, which is very different from the Hungarian system.
Challenges and the possibility of returning
For those moving to Austria, the biggest challenges are language barriers and bureaucracy. Those who set off unprepared are often forced to return home at short notice. However, those who start with careful planning, sufficient financial resources and at least a basic knowledge of the language are more likely to find a permanent job and a home.
The idea of repatriation is often raised, especially by older people, but the conditions for this are currently poor in Hungary. Improvements in the health and pension systems would be key to encouraging people to consider moving home. Subsidies from the Austrian government, such as family allowances or the climate bonus, also make living there more attractive.
The situation of Hungarians living in Austria is varied: higher incomes and better healthcare make the country attractive to many, but language skills and lack of preparation can be a barrier. Integration is generally smooth, thanks to Austria’s welcoming society and the activism of Hungarian communities. Although the idea of returning is sometimes raised, Austria’s more stable economic and social system currently offers more attractive opportunities.
The German car manufacturer BMW has decided that one of the three models originally planned to be produced in Debrecen, the new 3 Series based on the Neue Klasse platform, will be built at the main plant in Munich instead of in Hungary. This decision may have an impact not only on production capacity but also on the plant’s economic contribution, particularly in terms of Hungary’s GDP.
The Debrecen BMW plant was originally designed to produce three different electric models from the Neue Klasse platform: the iX3, iX4 and 3 Series. However, as part of the restructuring decision, BMW management decided to build the new 3 Series in Munich instead. According to 24.hu, the reason for this change is the uncertainty in the industrial environment, which is affecting the European car industry in particular.
The decision allows the Debrecen plant to focus on the two remaining models, the iX3 and iX4. However, this means that the plant will be optimised to produce only two models instead of the three originally planned.
Reduction in capacity
When the construction of the plant was announced in 2018, BMW set out ambitious plans to produce 150,000 cars a year in Debrecen. However, it now appears that this figure could be significantly reduced. According to industry sources, the maximum capacity of the plant could be limited to 80-90 thousand cars per year based on current plans.
The capacity reduction is due to the relocation of the new 3 Series to Munich. This model is expected to be a high-volume product and will be produced at the company’s flagship plant in Munich. Full capacity utilisation of the Debrecen plant will therefore remain uncertain towards the end of the decade.
The production start date has also been changed. The original target date of 2025 has been postponed by one year, and production is now expected to start in 2026. This shift is also due to the general uncertainty in the automotive industry.
The uptake of electric cars in Europe has been slower than manufacturers had previously expected. This slowdown has created spare capacity for several multinational carmakers, providing an opportunity to restructure and optimise production plans.
The strategic role of the Munich Plant
Munich continues to play a key role in BMW’s global manufacturing strategy. The company chose to build the new 3 Series at this central plant because of its ability to manage the product portfolio accurately and efficiently. This decision is in line with the company’s priority of strategically positioning its highest-volume models.
Munich is also a good location because in the current economic climate, competition between production sites is fiercer than ever. It is becoming increasingly difficult for automotive companies to make long-term plans, especially for new models and plants.
BMW’s possible impact on the Hungarian economy
The planned reduction in production at the Debrecen plant could have a direct impact on Hungary’s economic growth. The plant was originally expected to make a significant contribution to Hungary’s GDP but reduced capacity and delays in the start of production may reduce this expectation.
However, the plant could still be an important player in the Hungarian car industry, particularly with the production of two new electric models. The key question for the long-term outlook, however, is whether the plant will be able to reach full capacity and what new models are planned for the future.
Hungary and Ukraine have submitted an ambitious EUR 1 billion joint infrastructure proposal to the European Union. The strategic initiative, which focuses on improving cross-border transport links, includes plans for new motorways, upgraded border crossings and the construction of a modern bridge over the Tisza River.
The project aims to strengthen economic ties between Hungary and Ukraine and their integration into wider European networks by streamlining the movement of goods and improving regional connectivity. At the core of this initiative is a commitment to create seamless transport corridors between Hungary and Ukraine.
According to Magyar Építők, the plan outlines key infrastructure upgrades that promise to reduce bottlenecks and facilitate a more efficient flow of goods and people. This important step not only strengthens bilateral relations but also contributes to the EU’s vision of a more connected Europe.
New motorways and border crossings
Two major motorway projects will transform regional connectivity. One link will connect the cities of Záhony in Hungary and Csap in Ukraine, including the construction of a state-of-the-art bridge over the Tisza River. This new infrastructure will play a key role in improving cross-border trade and mobility.
Another cornerstone of the proposal is the redevelopment of the Lonya-Haranglab border crossing, which will soon accommodate freight traffic. This development is expected to improve traffic flow and reduce delays by diverting heavy vehicles from the congested Záhony crossing.
The Beregsurány-Asztély border crossing is undergoing a major upgrade to meet the demands of increased cross-border traffic. On the Ukrainian side, a major renovation and capacity expansion is planned to triple the crossing’s throughput capacity by 2026. In particular, the site has already begun to handle empty lorry traffic, marking the first phase of a comprehensive development strategy. This progress will establish Beregsurány as a key transport hub for the region.
Plans for a new border crossing between Nagyhódos in Hungary and Nagypalád in Ukraine signal further investment in regional mobility. This will be the sixth operational crossing between the two countries. Together with improvements at Asztély and Harangláb, these developments aim to reduce congestion at existing border crossings, particularly at the busy Záhony crossing.
Long-term plans and regional impact
Hungary’s ongoing commitment to expanding its motorway network reflects its broader vision of improved connectivity with Ukraine. Notable projects include the extension of the M3 motorway from Vásárosnamény to Beregsurány and the construction of the M34 expressway towards Záhony. These investments are crucial to strengthening the infrastructure that underpins cross-border economic cooperation.
This comprehensive development programme is about more than just improving transport infrastructure. It aims to increase the competitiveness of the entire region By improving the movement of goods and enhancing road safety. The resulting economic growth will strengthen the position of Hungary and Ukraine within the European Union and its economic networks.
The programme also reflects a forward-looking approach to regional integration. It emphasises the importance of strategic partnerships and the role of robust infrastructure in promoting economic resilience. Improved connectivity will not only benefit Hungary and Ukraine, but also reinforce the EU’s commitment to building a more united and economically vibrant Europe.