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

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

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

Property prices skyrocketed in Hungary, just like rents

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

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

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

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

Average increase in the EU was 54.1% and 26%

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

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

Featured image: depositphotos.com

PM Orbán’s EU group would review “Facebook censorship”

Patriots for Europe Facebook vetting committee

Patriots for Europe MEPs are initiating the setting up of a vetting committee in the European Parliament on “the issue of Facebook censorship”, a ruling Fidesz MEP said on Friday.

Csaba Dömötör said on Facebook that a few days ago, Facebook and Meta leader Mark Zuckerberg had stated with surprising honesty that “Facebook fact-checkers had been censoring certain contents under political pressure”. Dömötör added that among those that Zuckerberg cited as exercising pressure were the outgoing Democrats administration.

“What many have suspected and many have experienced has been proven to be a fact, but the story will not end at this point, and it must not end” he said.

Patriots for Europe Facebook vetting committee
Source: depositphotos.com

It is necessary to identify exactly what content has been censored, who ordered it, and whether it represented an intervention in European countries’ domestic affairs, he added.

“Many people in the European Parliament often cite the freedom of speech and basic values of constitutionality. It will now show how much they take them seriously,” Dömötör said.

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  • PM Orbán and President Trump’s alliance represents the future, the Hungarian government believes

PM Orbán and President Trump’s alliance represents the future, the Hungarian government believes

Trump Orbán

Brussels is the scene of a “battle between the forces of the future and the past”, the communications director of the ruling Fidesz-Christian Democrats (KDNP) said on Facebook on Friday.

“Ten days until the pro-peace Donald Trump is inaugurated. The world is about to change,” Tamás Menczer said. “The pro-war, pro-migration and pro-gender forces have lost Washington.”

At the same time, the same forces are still in a majority in Brussels, “and they will concentrate their forces on keeping Brussels, the last bastion,” he said. “The fight between the pro-war, pro-migration and pro-gender forces of the past and pro-peace, pro-security and pro-family Patriots will be fought in Brussels,” Menczer added.

Trump Orbán
Photo: FB/Orbán

“The Hungarian leftist-liberal opposition from [Democratic Coalition leader] Ferenc Gyurcsány to [Tisza leader] Péter Magyar has lined up behind the forces of the past,” he said.

“Brussels has clearly said what they want: they want the war to continue, they want migrants to be brought in, the gender madness to spread, and Ukraine to swiftly become an EU member. Besides our physical safety, this also puts our economic security at risk,” he said, adding that such goals would also bring about high energy prices and inflation.

“Hungary comes first for us patriots! The alliance of Viktor Orbán and Donald Trump is the future,” Menczer said, adding that the government supported peace, security and families.

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

russian gas supply, gazprom

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

Russian gas supplies face sudden halt

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

russian gas energy hungary
Illustration: depositphotos.com

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

Tension is rising in Slovakia too

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

Hungary still relies on Russian gas

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

russian gas, gazprom Szijjártó
Photo: depositphotos.com

Hungary’s unexpected opportunity

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

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Featured image: depositphotos.com

Ukraine’s bold offer to replace Hungary in the EU and NATO

orbán zelenskyy ukraine nato eu

Ukraine has expressed its willingness to take Hungary’s place in the European Union and NATO if Budapest continues to prioritise Russia’s interests over those of its Western allies. The statement, made by Ukraine’s Deputy Minister of Foreign Affairs Andrii Sybiha, has sparked discussions about Hungary’s controversial stance on key geopolitical issues.

Hungary’s Russia-friendly policies under scrutiny

According to Sybiha, Hungary’s policies often reflect a pro-Russian agenda, including hindering the access of U.S. energy resources to European markets, Magyar Hírlap wrote based on lenta.ru. Ukraine has accused the Hungarian government of using politically motivated narratives to justify its actions domestically, especially regarding energy security and EU-Russia relations.

In a separate statement to Jevropejiszka Pravda, Ukraine’s Ministry of Foreign Affairs dismissed Hungary’s claims that Ukraine’s decision to halt Russian gas transit from 2025 would harm European energy security. Instead, they emphasised that energy-related problems in Europe stem from Russia’s long-standing weaponisation of resources to manipulate governments and destabilise markets.

Ukraine positions itself as a reliable EU and NATO candidate

According to Privátbankár, Ukraine reaffirmed its commitment to the EU and NATO, contrasting its stance with Hungary’s. The Ukrainian Foreign Ministry asserted that if Hungary chose to align with Russia or other organisations like the Commonwealth of Independent States (CIS) or the Collective Security Treaty Organisation (CSTO), Ukraine would gladly step in to fill the void.

Highlighting successful diversification efforts by other European countries, Ukraine criticised Hungary for failing to reduce its dependence on Russian energy. They argued that Hungary’s actions hinder broader European energy independence, especially regarding partnerships with the U.S. and Middle Eastern suppliers.

Hungarian response and diplomatic tensions

Hungarian Minister of Foreign Affairs and Trade, Péter Szijjártó, reacted sharply to Ukraine’s assertions. In a Facebook post, he hinted at Hungary’s potential to veto Ukraine’s EU membership bid, signalling that tensions between the two countries are unlikely to ease soon. Ukraine’s bold statements reflect its desire to solidify its position as a dependable Western ally, especially amid ongoing conflicts with Russia. Meanwhile, Hungary’s balancing act between East and West continues to draw criticism, both regionally and globally.

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Hungarian minister Szijjártó criticises Ukraine’s proposal to close energy transit routes as ‘unacceptable’

szijjártó ukraine energy transit route

Péter Szijjártó said in a post on Facebook that Ukraine’s foreign ministry had reacted “rather aggressively” to news reports on Tuesday on rising gas prices resulting from the decision to scrap the transit route leading through Ukraine. Meanwhile, on Wednesday, he added, Ukraine’s parliament had registered on its website a bill aimed at closing oil and gas delivery routes from Russia during a state of war.

“With respect, we must remind our Ukrainian colleagues that there is a reality that exists and that there are rights and obligations,” the minister said. He said the reality was that the admission of new European Union members required the unanimous approval of existing member states. Szijjártó also said that all countries had the sovereign right to decide from what source and via which route they buy and access the energy needed for their operations. He said that no outside entity had a say in this, and no one had the right to force “more expensive and less reliable” energy imports onto another country.

Meanwhile, he said that a country that signs an association agreement with the EU and wants to join the bloc has an obligation to contribute to the community’s energy security by ensuring the necessary delivery routes. That was why, he said, the closing of either natural gas or crude delivery routes was “unacceptable” and went against expectations that have to be met when it comes to EU integration.

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

Budapest Hungary people citizen street competitiveness eu

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

Hungary’s position in the EU

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

Regional trends and comparisons

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

Changes over time

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

Insights on material welfare

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

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Featured image: depositphotos.com

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

gas energy hungary government

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

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

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

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

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

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

related article – Support from Brussels: Hungary to expand renewable energy in district heating with €238M investment plan

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

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

related article: Solution to problems caused by US sanctions on Gazprombank close, says Hungarian minister

Fidesz: Early election not on the cards

Budapest Sight Parliament Parlament Danube 2

Voters will choose political parties in the usual way, the head of the Fidesz parliamentary group said on Monday, vowing not to cave into demands to bring the general election forward.

An early election has not been held since 1990 and another will not be held in future, Máté Kocsis said on Facebook in reaction to the latest call for the election to be brought forward, this time by Ferenc Gyurcsány, the leader of the opposition Democratic Coalition (DK).

related article: Gyurcsány calls on ruling party lawmakers to support call for early election

He accused Gyurcsány and Tisza Party leader Péter Magyar of being stooges of Brussels. “We know full well where the wind is blowing from,” he wrote. Kocsis said the financiers of foreign people of influence had “given orders to stop Viktor Orbán from governing durably after Donald Trump takes office”, adding that Trump and Orbán opposed war and both would impair the “war policy of Brussels” as well as the implementation of the migration pact. With Trump soon taking office, “it is understandable that … it has become urgent for the Brussels elite to effect the quickest possible change of government in Hungary. This is why they want to dissolve parliament; this is why they are demanding early elections…”

Kocsis accused DK and Tisza of coordinating to bring forward the election and of “actively cooperating in Brussels and … in the Budapest assembly, too”. In the last big election “barely six months ago”, “our community” received more votes than the second, third and fourth place combined, he said, adding that this was ample evidence of the current state of voter sentiment.

The Fidesz politician said Gyurcsány’s Socialist government had presided over “extremely high” personal income taxes and poor salaries for civil servants and teachers, while Fidesz had worked to ensure broad wage increases and a three-year agreement on raising the minimum wage. PIT, meanwhile, “is the lowest in the region”, he added. Whereas Gyurcsány “took away the 13th month pension, we handed it back, and we’re making it permanent,” he wrote. He also accused the DK leader of planning to “tear down the border fence and let migrants in”.

As we wrote earlier, opposition Tisza leader Péter Magyar called for early elections.

From 377 to 416: How the Hungarian Forint’s decline defined 2024

The weakening of the forint in 2024 was a significant economic event in Hungary. The exchange rate against the euro began the year at 382 forints and weakened to 410 forints by the end of the year, marking a depreciation of 7.3%.

According to Index, the best exchange rate was recorded in January (377.1 HUF/EUR), while the worst occurred in December (416.4 HUF/EUR). This trend has raised serious questions regarding the macroeconomic fundamentals of the economy and developments in the foreign exchange market.

HUF 10000 Hungarian banknote forint
Photo: depositphotos.com

The role of macroeconomic fundamentals

The weakening of the forint cannot be explained solely by macroeconomic fundamentals. Although inflation eased to 3.7% and the current account turned positive, these factors alone should have strengthened the forint. The budget deficit, while less than ideal, likely remained at the planned level of 4.5%, which does not justify such a large depreciation of the exchange rate. Despite underperforming expectations, the economy grew by 0.6%, which also fails to explain a drastic depreciation of the forint.

Speculative attacks also contributed to the weakening of the forint’s exchange rate. According to data from the Magyar Nemzeti Bank (MNB), foreigners’ positions against the forint increased significantly in October, exerting downward pressure on the exchange rate. Currency market movements were further influenced by the rising electoral prospects of US President Donald Trump. Campaign promises, such as protective tariffs and stimulus measures, led to a stronger dollar and a weaker euro, placing additional strain on the forint.

Monetary policy and the interest rate environment

The Magyar Nemzeti Bank continued to ease monetary policy in 2024, reducing its key interest rate from 10.75% at the beginning of the year to 6.5%. While this might have strengthened the forint in line with market expectations, the narrowing interest rate differential and the looser policy stance of regional central banks failed to provide adequate support. Hungarian interest rates also lost relative appeal in the context of policy decisions by the Federal Reserve and the European Central Bank, further weakening the forint.

The exchange rate of the forint has been significantly affected by political and geopolitical factors. Conflicts with the European Commission, the withholding of EU funds, and developments in the Russian-Ukrainian war have all weakened the Hungarian currency. Export trends and the performance of the German economy have also played a key role, as Hungary remains heavily dependent on demand from the German market.

What to expect from 2025

The outlook for 2025 is fraught with uncertainties. The Russian-Ukrainian conflict, the normalisation of relations with the European Union, changes in monetary policy stances, and the international economic environment could all play decisive roles. The policies of the new central bank governor and the promise of a stable exchange rate are also likely to influence the fate of the forint.

The weakening of the forint in 2024 resulted from a complex interplay of economic, political, and market factors. While macroeconomic fundamentals do not justify the significant depreciation of the exchange rate, speculative attacks, international monetary developments, and the geopolitical situation have all contributed. Stability in the coming years will depend on the convergence of internal and external factors, which will be crucial for the Hungarian economy.

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Featured image: depositphotos.com

EIT opens innovation community hub in Hungary

The European Institute of Innovation and Technology (EIT) has opened a community hub for innovation in Budapest, the organisation told MTI on Monday.

The EIT Community Regional Innovation Scheme (RIS) Hub is part of a European network that extends to nearly 20 countries. EIT said its hubs serve as a one-stop shop for local stakeholders in the countries in which they are established. Their main mission is to ease access to knowledge and innovation support and identify synergies between the EIT Community and local actors. They strengthen local entrepreneurship and build bridges between local and EU innovation networks.

EIT was established in 2008. It is a part of Horizon Europe, the EU’s Framework Programme for Research and Innovation. They said that as an EU body, they are powering Europe’s entrepreneurs and innovators to develop cutting-edge solutions to pressing global challenges, turning the best ideas into products, services, and jobs for Europe.

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This Hungarian innovation may revolutionise the aviation industry

Kosovo or not? Hungarian President Tamás Sulyok’s post sparks outrage!

tamás sulyok hungarian president

At midnight on 31 December 2024, Romania and Bulgaria formally joined the Schengen Area, marking a significant milestone in the history of the European Union. The event held particular importance for Hungary, as the removal of regular border controls with neighbouring Romania opened up new opportunities for free movement and cross-border cooperation.

While the political and economic implications dominated public discussions, an unexpected diplomatic complication arose due to a map error in a Facebook post by Hungarian President Tamás Sulyok.

tamás sulyok president christianity
Photo: Facebook/Dr. Sulyok Tamás

Opening ceremonies and diplomatic importance

Following the enlargement at the end of the year, ceremonies were held to celebrate the opening of border crossings between Hungary and Romania. Lieutenant General of Police János Balogh and Chief Inspector Cornel-Laurian Stoica symbolically affirmed the cooperation between the two countries. According to Telex, Hungarian State Secretary Levente Magyar emphasised at several events that the border opening was not just a logistical achievement but also a cultural and social bridge between Hungary and Romania.

The free movement enabled by the Schengen Area was also seen as a revival of historical ties between Hungary and Transylvania. In his speech, Levente Magyar stated that the enlargement was not only a source of national pride but also the beginning of a new era of shared development.

Hungarian President Tamás Sulyok’s facebook post

The celebrations were overshadowed by an embarrassing mistake. In an official Facebook post, Hungarian President Tamás Sulyok welcomed Romania and Bulgaria’s accession to the Schengen Area, highlighting the importance of solidarity and shared progress.

However, the accompanying map in the post mistakenly depicted Kosovo as part of Serbia, leading to a diplomatic controversy. Kosovo declared independence in 2008, which Hungary recognised the same year, making the error particularly sensitive. The issue was especially fraught given the historical context of war in the region.

The slogan “Together without borders” became especially problematic as the erroneous map disregarded Kosovo’s independence. This was a significant oversight, as the war between Kosovo and Serbia from 1998 to 1999 claimed over 13,000 lives, the majority of whom were Kosovo Albanians. Such mistakes not only breach diplomatic protocol but can also reopen deep historical wounds.

The error was published on 444.hu, which drew attention to the issue. The newspaper contacted the Alexander Palace, the Hungarian President’s official residence, to inquire how such an oversight had occurred. According to Telex, the Office of the President issued a brief statement: “We have corrected the stylised map.” However, the response was criticised for being defensive rather than contrite, as it offered no public apology or detailed explanation.

The incident involving Tamás Sulyok demonstrates how even seemingly minor errors in digital communication can have significant consequences. A misrepresentation of a country on a map can deeply offend sensitivities, particularly when the region in question has a history of conflict.

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Polish-Hungarian relationship may be at a historic low: is PM Orbán a persona non grata in Warsaw?

PM Orbán

Polish Deputy Minister for European Affairs Magdalena Sobkowiak-Czarnecka announced that the Hungarian ambassador to Warsaw, István Íjgyártó, was “not welcome” at the opening event of the Polish EU presidency. The Hungarian FM called that pathetic and childish. The Polish “rudeness” seems to be due not to PM Orbán’s standpoint concerning Ukraine or Russia but to internal Polish political clashes.

Poland, a historic ally and friend of Hungary, took the EU presidency from Hungary on 1 January and organised an opening ceremony yesterday evening in Warsaw. However, though they invited the Hungarian ambassador, István Íjgyártó, they added in a diplomatic note that the Hungarian diplomat was not welcome at the event. Though it is not compulsory, Poland did not invite PM Orbán.

Donald Tusk
Donald Tusk. Photo: depositphotos.com

Polish opposition party PiS said the Donald Tusk-lead government did not organise an opening event for the EU leaders because, in that case, the president, Andrzej Duda (PiS) would welcome the guests. Former defence minister and current parliamentary group leader Mariusz Błaszczak said PM Duda’s decisions make Poland ridiculous.

Hungarian Opposition Socialists outraged

Prime Minister Viktor Orbán’s policies go against European values, the opposition Socialists said on Friday, and called on the Hungarian government to respect democratic principles. The fact that Hungary’s ambassador to Poland was not invited to the opening ceremony of Poland’s European Union presidency was a clear rejection of the Hungarian government’s policies, the party said.

PM Szijjártó: pathetic and childish

The decision of Polish Foreign Minister Radoslaw Sikorski is “pathetic and childish”, Foreign Minister Péter Szijjártó said according to a ministry statement on Friday, commenting on Sikorski’s decision to declare the Hungarian ambassador to Poland persona non grata at the opening event of Poland’s EU presidency.

Sikorski sent a diplomatic note to the ambassador on Friday, saying he was “not welcome” at the event. Earlier on Friday, Polish deputy minister Magdalena Sobkowiak-Czarnecka told Polish public media that the ban was linked to Hungary’s decision to grant asylum to Marcin Romanowski, a former Polish deputy justice minister.

Polish-Hungarian clash due to former minister Marcin Romanowski’s asylum in Hungary

The Socialists said that the decision was linked to Hungary having offered political asylum to former Polish Deputy Justice Minister Marcin Romanowski who is currently a subject of a procedure on suspicion of corruption in his home country. It added that Magdalena Sobkowiak-Czarnecka, the deputy minister in charge of EU affairs had said that Hungary’s decision violated the principles of European solidarity and rule of law.

The Socialists said the incident was another example of how the government of Prime Minister Viktor Orbán was undermining common EU values and cooperation between member states.

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Main goods transport artery, Budapest’s Gubacsi railway bridge, may collapse into the Danube – PHOTOS

Gubacsi railway bridge Budapest

The Gubacsi railway bridge connects Budapest’s 20th and 21st districts, but its importance is much higher than just connecting two areas of the Hungarian capital. Hungary’s only container port is in the Northern parts of Budapest’s 21st district, Csepel. Without the railway bridge, serious disruptions could evolve in goods transport via Hungary, having a devastating effect even in the Central European or German economies.

5 km/h is the permitted speed on the Gubacsi railway bridge

Therefore, it is bad news that Hungarian authorities introduced a 5km/h speed limit on the Gubacsi railway bridge due to its dangerous state. Some media outlets even said the overpass may collapse into the Soroksár arm of the River Danube.

Here are some photos of the state of the bridge:

According to Indóház Online, authorities installed speed-measuring cameras and displays on either side of the bridge. However, the cameras do not function appropriately. From the 20th district, they measure even the speed of the cars, so they are always red. Meanwhile, from the 21st district, they measure the speed of the pedestrians because of which they “are always smiling” green.

As we wrote in THIS article, there were multiple plans to build a new overpass north of the existing one. The brand-new, 145-metre-long bridge could solve the problems of the slow pace that goods transport companies struggle with, but the Hungarian government “could not find” the money for it in the last 2-3 years. The European Union could finance such projects, but since the Orbán cabinet could not agree with the European Commission, those funds remained frozen.

Gubacsi railway bridge Budapest
Photo: FB/Szabolcs Szabó

No money for the new Gubacsi railway bridge

In 2023, the Hungarian government planned to build the new railway bridge with Connecting Europe Facility (CEF) funds. The Orbán cabinet said the new connection would reduce the shipping time of military equipment to the Freeport of Csepel and increase Hungary’s military mobility. In 2024, the government allocated HUF 44 billion (EUR 105 million) from EU funds for the construction, but nothing happened.

Based on estimates, 30-40% of Hungary’s industry depends on the Gubacsi Danube Railway Bridge since Hungary has only one container port, the so-called freeport at the northern edge of Csepel Island. If authorities had to end traffic on the overpass, it would cause serious disruptions in goods transport and would have a devastating effect even in the Central European or the struggling German economies.

Gubacsi railway bridge Budapest
Photo: FB/Szabolcs Szabó, the MP of the Csepel-Soroksár electoral district.

Read also:

  • Shocking decline: How Hungary fell behind its neighbours after joining the EU – read more HERE
  • Hungary lowers guest worker cap, 10 countries on the banned list

New year, new challenges: Hungary loses over EUR 1 billion in EU funds

Hungary’s ongoing struggle to secure EU funds has escalated even more. Over EUR 1 billion was permanently lost due to unresolved issues with rule-of-law compliance.

EUR 1 billion in EU funds lost

As Telex reports, Hungary is facing serious financial consequences as it permanently loses over EUR 1 billion in EU funds—the first time this has happened to a member state. The funds were frozen back in 2022 as part of an EU procedure aimed at protecting its budget from rule-of-law breaches. In that year, member states blocked EUR 6.3 billion, pointing to widespread issues with Hungary’s public procurement system, including corruption risks and lack of transparency.

Although Hungary has taken steps to address these concerns—such as setting up an Integrity Authority and reforming public tender processes—the European Commission recently ruled that the problems haven’t been fully resolved. As a result, vital funding for areas like energy efficiency and transport is now off the table. This loss could further strain Hungary’s budget, forcing the government to borrow more at a time when it’s already under pressure from an EU excessive deficit procedure.

EU funds

Long-standing issues

Hungary had an additional year to avoid losing EU funds for three key programmes but failed to meet the conditions set by the European Commission. While the government claims the issue has shifted from technical and legal compliance to political negotiation, it made limited progress in addressing the EU’s concerns. Restrictions imposed in 2022 not only froze EUR 6.3 billion in funding but also blocked public interest trusts, including universities undergoing model changes, from accessing new EU tenders.

Despite being able to request a reassessment at any time, Hungary’s efforts have fallen short. The Commission cited unresolved issues, such as conflicts of interest in public interest trusts and a lack of transparency. Attempts to exempt certain entities from restrictions have only exacerbated tensions. As a result, the partial suspension of cohesion programme funding remains in place, further straining Hungary’s institutions

Hungarian students face challenges

Hungary’s struggle to secure EU funds has led to significant financial and institutional strain, with universities, research programmes, and students feeling the impact. A ban on public interest trusts has already cost millions in Horizon Europe collaborations and barred Hungarian students from Erasmus exchanges. The government introduced alternative programmes like HU-rizont and Pannonia, funded by taxpayers, but their budgets pale in comparison to the EU resources lost.

Hungarian politicians’ standpoint

Adding to the burden, Hungary faces daily penalties of EUR 1 million due to non-compliance with refugee rights rulings, amounting to EUR 400 million by late 2024. While Prime Minister Orbán insists that current EU funds will sustain the economy until 2026, the looming n+2 rule threatens further losses. Efforts to negotiate with the European Commission continue, but critics, including opposition leader Ferenc Gyurcsány, accuse Orbán’s government of recklessness, blaming its actions for Hungary’s financial setbacks. In addition, Péter Magyar, leader of the Tisza Party, often emphasises that his goal is to bring home EU funds. However, as political and financial pressures mount, securing EU funds remains a critical challenge for the Hungarian government.

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European Council President thanks Hungary for successful EU presidency

antónio costa viktor orbán eu presidency

António Costa, President of the European Council, has thanked Prime Minister Viktor Orbán and his team for their work performed during Hungary’s EU presidency in the past half year.

“Thank you, Viktor Orbán and the [Presidency] team for your work during the 6 months of your presidency of the Council,” Costa said in an entry posted on social media platform X. “Köszönjuk Magyarország!” he wrote in Hungarian. Hungary held the rotating EU presidency for the second time between July and December 2024. It held the first presidency in January-June 2011.

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Hungary overtakes Slovakia in new EU ranking, but challenges remain

slovakia hungary eurostat

Hungary has surpassed Slovakia in research and development (R&D) spending relative to GDP within the Visegrád Group (V4), according to Eurostat’s latest report. However, the data reveals significant room for improvement, particularly in education-based R&D investments.

EU R&D spending trends

In 2023, EU member states collectively spent EUR 381.4 billion on R&D, marking a 6.7% increase from 2022, Növekedés reports. While this equates to 2.2% of the EU’s GDP—a figure unchanged from the previous year—Hungary’s R&D spending relative to GDP dropped to 1.39%, down from 1.63% in 2021. Among V4 countries, Hungary lags behind the Czech Republic (1.83%) and Poland (1.56%), narrowly leading Slovakia (1.04%).

slovakia hungary eurostat
Photo: depositphotos.com

A closer look at Hungary’s R&D spending

Hungary allocates the smallest share of GDP to education-based R&D in the EU, despite government claims that university funding reforms would bolster research. Corporate contributions dominate Hungary’s R&D spending, accounting for 73%—one of the highest proportions in the EU.

However, these figures can be misleading. In nations with lower GDPs, higher relative spending may not translate to significant absolute funding. When viewed on a per-capita basis, Hungary’s R&D expenditure is among the lowest in the EU, falling below both the V4 and EU averages.

Consequences and the path forward

The limited investment in R&D directly impacts Hungary’s competitiveness in knowledge-driven sectors. While other V4 nations, such as Poland, have achieved notable increases in R&D spending over the past decade, Hungary’s growth remains sluggish.

Despite this, experts caution against solely focusing on spending levels. Efficient allocation and outcomes, such as innovation and export growth, ultimately determine the effectiveness of R&D investments. Future data, including Hungary’s placement on the EU’s Innovation Scoreboard, will shed light on the country’s progress in leveraging its R&D efforts.

Hungary’s modest R&D spending underscores the urgent need for strategic investment in innovation, particularly in higher education. As knowledge and technology become the primary drivers of economic growth, addressing these gaps is crucial for the country to maintain and enhance its global competitiveness.

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Orbán cabinet says Hungary’s EU presidency has been “strong, active, strategic”

Hungary's EU presidency

Hungary’s presidency of the Council of the European Union was a “distinctive, active and strategic” presidency, János Bóka, the EU affairs minister, said late on Monday.

“The presidency was distinctive because we aimed to put a decisive and strong Europe policy into practice,” Bóka said in a video message on Facebook. He said the presidency had been active because of the series of initiatives Hungary had undertaken over the six-month period. Further, the Hungarian presidency “was strategic because we aimed to provide strategic guidance to the European Union’s institutions for the next five-year institutional cycle,” Bóka said.

Hungary’s EU presidency in figures

Boglárka Bólya, Ministerial Commissioner for Training, Personnel Coordination and Social Relations during the EU Presidency, summed up the past six months:

  • 39 formal Council meetings and 52 high-level meetings took place in Brussels.
  • 14 informal meetings were chaired by Hungarian ministers in Budapest and 1204 working group meetings were chaired by Hungarian experts.
  • 93 Presidency events were held in Brussels and 180 in Hungary.
  • More than 20,000 guests were welcomed at events in Hungary.
  • Hungary hosted the 5th European Political Community (EPC) Summit, which is considered the largest diplomatic event ever held in the country, and took steps towards the institutionalisation of the EPC. At the informal European Council in November, the leaders of the Member States adopted the Budapest Declaration, which sets out the European Union’s competitiveness priorities for many years to come.
  • It is an achievement of historic proportions that Romania and Bulgaria have become full members of the Schengen area.
  • It also gave new impetus to the enlargement process in the Western Balkans, with the first informal meeting of demography ministers. As we wrote earlier, Hungarian EU Presidency makes milestone progress on enlargement for Serbia, Montenegro, and Albania
  • Progress has been made on all the priorities set and he underlined the work done to promote Jewish life.

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