The government resolutely urges Liberty Steel to pay wages due to Duna Steel Works employees in line with its legal obligations, the national economy ministry said on Thursday.
The Liberty group received significant government support until last June, which helped save jobs and families’ livelihoods, the statement said.
The Indian-British company group has so far failed to fulfil its promises to develop the steel works or its obligation to restart production, it said. Instead, it had made repeated false promises in the recent period, it added.
Dunaferr. The main gate in Dunaújváros. Photo: Creative Commons CC BY-SA 3.0
The current owner of the Duna Steel Works has claimed that it cannot afford to pay the wages of several thousand workers, “which is unacceptable”, the ministry said.
The government is ready to intervene to protect the workers, and if necessary it can again offer help from the Wage Guarantee Fund, the ministry said.
Photo: FB/Tamás Pintér
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OTP Bank, Hungary’s biggest commercial lender, booked consolidated after-tax profit of HUF 318.5bn in the third quarter, climbing 8pc from the base period after adjustments, an earnings report released ahead of the opening bell on Friday shows.
Earnings beat analysts’ HUF 290.6bn consensus. OTP’sforeign units generated 64pc of after-tax profit during the quarter. Net interest income increased 15pc to HUF 444.2bn. Net revenue from commissions and fees rose 10pc to HUF 137.5bn.
Risk costs came to HUF 27bn for the quarter, including HUF 15bn in credit risk costs, mainly at OTP’s banks in Russia and Bulgaria, as provisions were released in Hungary. The divestment of OTP’s Romanian bank had a one-off positive impact of HUF 10.5bn at group level. OTP also booked a HUF 16bn fair value adjustment on subsidised home loans and prenatal baby support credit in Hungary.
Photo: PrtScr/Youtube
OTP had total assets of HUF 41,557bn at the end of September, up 5pc from twelve months earlier. OTP affirmed earlier management guidance: FX-adjusted performing loan volume growth could exceed the 6pc in 2023, while the lender’s consolidated cost-to-income ratio could be around 45pc. OTP said there was no information to be announced about significant acquisitions for the time being, but added that the lender continued to seek potentially value creating acquisition opportunities.
All subsidiaries of the OTP Bank performing well
László Bencsik, OTP’s deputy-CEO, told journalists after the publication of the report that the lender’s profitability was “outstanding” in Q1-Q3 with ROE of 24.9pc. OTP’s liquidity and capital position are stable, while its NPL ratio improved by 0.3pp to 4.0pc, he added. In Hungary, OTP’s mortgage contract volume rose by a factor of close to 2.5 in Q1-Q3, while outlays of personal loans climbed over 60pc, beating the market average, he said. Demand for corporate credit is “modest”, while stock of loans to microbusinesses and SMEs edged up 4pc, he added.
OTP’s Uzbek unit, Ipoteka Bank, acquired last year, generated profit of HUF 42bn in Q1-Q3, he said. Fielding questions, Bencsik said Hungary’s transactions duty was “one of a kind” in the world and hurt Hungary’s competitiveness as well as creating a market distortion for banks competing with fintech companies such as Revolut. From next year, the transactions duty will raise a typical client’s monthly charges by HUF 300, he added.
MOL Q3 earnings fall
Third-quarter pre-tax profit of Hungary’s MOL slipped 24pc year-on-year to USD 503m, the oil and gas company said in an earnings report published ahead of the opening bell on Friday. Net revenue fell 6pc to USD 6.863bn.
Chairman-CEO Zsolt Hernadi said the company had closed a “mixed quarter” in September. Performance of the downstream business weakened amid the “challenging” macro and fiscal environment, but that was counterbalanced by a favourable upstream performance, supported by mature assets in Hungary, he added.
Photo: Creative Commons
He said the flat performance of the consumer services business, in spite of a 5pc drop in the number of petrol stations, was a “very good sign”. He added that higher volume of the deposit-return system run by MOL unit MOHU showed the company’s entry into the waste management business was a good step and augured “great potential” for further development. Pre-tax profit reached USD 1.419bn for the period Q1-Q3, putting the company “on track” to meet full-year guidance for around USD 1.6bn, MOL said.
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The cooling system of the glass inert gas vault of Hungary’s coronation regalia in the Hungarian Parliament went off. As a result, the device is no longer capable of keeping the compulsory humidity and temperature, so the coronation regalia can be damaged. Therefore, immediate replacement is needed. However, it will not be cheap.
Hungarian coronation regalia in peril
There are five Hungarian coronation regalia kept separately in Budapest. If you want to get a glimpse of the Holy Crown, the sceptre, the coronation sword or the orb, you have to visit the Hungarian Parliament. They are all kept under the iconic dome, in the Dome Hall, under 24/7 protection by special guards. If you want to see how the coronation mantle looks, you should go to the National Museum of Hungary. We covered in THISarticle that the only authentic image of Saint Stephen is on that mantle.
The main staircase of the Hungarian Parliament leading to the Dome Hall where the Holy Crown, the sceptre, the orb and the coronation sword can are kept:
Photo: FB/Orbán
Photo: FB/Orbán
Hungary does not want to protect these regalia only from bad guys or lunatics but also from time, humidity, extreme temperatures, etc. Therefore, the Hungarian government ordered a special glass inert gas (nitrogen) vault in 2000 from Germany and placed the coronation regalia under it in the Parliament. Árpád Habony told RTL Klub that the protection system was unique, similar systems were only in use in the United Kingdom.
According to hvg.hu, the cooling system of the bulletproof, earthquake-resistant device went wrong. As a result, it cannot provide the compulsory 20 +/- 2 °C temperature and 40% humidity, because both the primary and the replacement systems broke down. Without those systems, the coronation regalia cannot be saved from oxidation and other types of deterioration.
The Holy Crown and crowning jewels in the Parliament. Photo: Facebook, Országház
New glass inert atmosphere vault ordered from Germany
The German producer, Glasbau Hahn GmbH, said the restoration of the glass would take 8-10 weeks, but they could only place the coronation regalia in a temporary store device in which temperature and humidity cannot be set.
The Szent Korona Testület (Holy Crown College) in which, among others, the president, the prime minister, the heads of the Supreme Court and the Hungarian Academy of Science are members, decided to order a new glass inert gas vault.
Hvg.hu asked how much the project will cost and whether tourists will be able to see the crown regalia even in the interim period but has not received an answer yet.
Interestingly, László L. Simon, a former Fidesz MP, secretary of state and director of the Hungarian National Museum, proposed transferring the crown to Buda Castle.
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In July 2023, Minister Gergely Gulyás announced that Hungary’s financial transaction tax (FTT) would increase starting from the 1st of August 2024. The tax for non-cash transactions is set to rise to 0.45%, capped at HUF 20,000 (EUR 49), while cash transactions will face a steeper 0.9% rate. The primary goal is to curb the growing budget deficit driven by substantial public spending.
According to Telex, the government’s ambitious investments in infrastructure and energy have stretched budget limits, pushing for measures like the FTT hike. While this tax was initially framed as a burden for banks, it is becoming clear that the impact will likely trickle down to everyday citizens.
Source: Pixabay
In an attempt to delay immediate consequences for consumers, the government has prohibited banks from shifting these increased costs onto customers until the end of 2024. However, with no plans to extend this ban, banks are gearing up to raise their fees in early 2025. Per current regulations, financial institutions must provide a 60-day notice to customers about any rate changes.
The first bank to announce the fee increase: OTP
OTP Bank has already taken the lead by announcing fee hikes set for January. Transfer fees will go up by 0.15 percentage points, reaching 0.45% for transfers within the bank and 0.5% for transfers to other banks, according to Telex. Although the fee-free threshold has increased from HUF 20,000 (EUR 49) to HUF 50,000 (EUR 122), the cap for maximum fees has jumped sharply from HUF 14,522 (EUR 35) to HUF 25,000 (EUR 61).
Source: Facebook / OTP Bank
The changes don’t stop there. OTP’s cash withdrawal fees are also seeing adjustments: domestic ATM withdrawals will now cost HUF 159 (EUR 0.3) + 1.79% instead of HUF 159 (EUR 0.3) + 1.49%, while foreign ATM withdrawals will rise from HUF 1581 (EUR 3.8) + 0.6% to HUF 1581 (EUR 3.8) + 0.9%. Foreign cash withdrawals will face a hike from EUR 3.68 + 0.6% to EUR 3.68 + 0.9%.
The rising financial burdens
According to financial expert Péter Gergely, OTP’s move signals a broader trend, with other banks likely to announce similar fee hikes starting January. Legislation even allows for additional rate increases by spring, reflecting the previous year’s inflation rate.
Hungary’s FTT, in place since 2013, has seen multiple increases over the years. What started as a relatively minor charge aimed at bolstering state revenues has steadily transformed into a significant burden, particularly for individual consumers and smaller businesses. Initially justified as a way to ensure that financial institutions contribute more to public finances, the tax has evolved into a tool that impacts everyday financial transactions.
Over time, as the tax rate has increased and caps have been adjusted, the cumulative effect on personal and business budgets has become more pronounced. This trend has raised concerns about financial accessibility and equity, as many worry that continued hikes will disproportionately affect lower-income individuals and those who rely heavily on financial services.
István Tiborcz, Orbán’s son-in-law, has seen his wealth soar thanks to tax breaks tied to the BDPST Group, which have dramatically sliced his tax obligations.
Following a significant law passed in 2017, the BDPST Group has enjoyed tax relief amounting to approximately 30 billion HUF (EUR 74,058,690.00) over the past five years, which has been transformative for Orbán’s son-in-law Tiborcz’s financial standing. After debuting on Hungary’s rich list in 2019, Orbán’s son-in-law has since tripled his net worth, reaching the 19th spot among Hungary’s billionaires in 2023, according to 24.hu.
Photo: Instagram / rahel_orban
BDPST Real Estate Distributor Ltd: A profitable core
At the centre of this wealth accumulation is BDPST Real Estate Distributor Ltd, the flagship company of the BDPST Group. Between 2019 and 2023, the company reported an impressive profit of HUF 48.4 billion. From this amount, Orbán’s son-in-law, Tiborcz and other owners collected HUF 5.5 billion (EUR 13,578,306.50) in dividends, while paying minimal or no corporate tax over the years. BDPST Ltd. employed tax incentives and legal frameworks to keep its tax bill strikingly low, a strategy also extended to its affiliated companies.
The real key to BDPST’s tax savings is a 2017 amendment allowing companies to double-count renovation expenses for historic buildings when calculating tax deductions. Thanks to this policy, introduced by the Orbán government, Tiborcz’s company acquired historic properties and funded their renovations with substantial loans, some sourced from the state-owned Hungarian Development Bank. These manoeuvres have kept BDPST’s tax obligations so low that it has effectively avoided corporate tax altogether.
Reaction from the TISZA Party
Péter Magyar, leader of the TISZA Party, has openly condemned this arrangement, accusing the Orbán government of creating what he describes as a “tax haven” for Tiborcz. He argues that Orbán’s government has effectively embedded loopholes in the law to benefit Tiborcz’s companies, further supporting his enterprises with state-backed loans. Magyar went so far as to liken their operation to “Al Capone in kindergarten,” suggesting this issue could prompt significant political shifts by 2026.
Photo: FB/Magyar Péter
What happens to Orbán’s son-in-law’s wealth?
According to Szabad Európa, Ráhel Orbán and István Tiborcz married in 2013 on a grand estate in Fejér County, located in the picturesque Tükröspuszta, on the border of Bicske and Csabdi. Since then, the Tiborcz family has embarked on a property acquisition spree, buying multiple plots, including a forest and various fields. Recent contracts reveal that Tiborcz and his father, Dr Sándor Tiborcz, acquired a total of 19.6 hectares of land—both farmland and forest—in August and September 2024, valued at HUF 75 million (EUR 185,167.28). With this latest acquisition, the Tiborcz family now owns at least 340 hectares in and around their Tükröspuszta estate.
Shortly, digital currencies could reshape global financial systems, with the digital euro expected by November 2025. Meanwhile, the Hungarian Central Bank (MNB) is exploring the potential of a digital forint for wide-scale use, currently in a test phase for youth aged 8–14 since March of last year.
Digital forint in testing phase
The “Student Safe” (Diákszéf) mobile app, available nationwide since May last year, allows young people to manage digital forint transactions within the app, explained Anikó Szombati, head of MNB’s digital and fintech development, during the “Digital Hungary” event hosted by the Oeconomus Economic Research Foundation, Index reports. The MNB began researching digital central bank currencies around 2020 and published a study on the topic in 2021.
The MNB is exploring the potential of a digital forint for wide-scale use. Photo: depositphotos.com
While many central banks are examining digital currencies, most do so at a theoretical level. The MNB, however, has opted to practically test a local digital currency, with a focus on educating young users about responsible money management and digital payments. The goal is to develop a user-friendly and competitive app for digital currency transactions, potentially rivalling both traditional banks and major fintech players like Revolut.
Why digital currencies?
Central banks generally consider digital currencies for two primary reasons:
Market gaps – to address banking and fintech access issues in countries with limited financial services.
Strategic sovereignty – in the eurozone, for instance, the digital euro would help secure monetary independence from foreign digital currencies and major card companies, like Visa and Mastercard, which currently hold near-monopoly status in Europe.
A digital currency could also serve as a free payment tool for those in need. MNB’s digital currency rollout could make account services and transactions more affordable for households and businesses alike.
Digital currency a way to restore state control
Economist Zoltán Pogátsa noted that a central bank digital currency is not just a technological advancement but a way to restore state control over the currency. “Having a central bank digital currency essentially reclaims control over money for the state,” he remarked, explaining that most money in circulation today is issued through commercial bank lending, beyond effective state oversight.
The rise of “super apps” is also anticipated. According to György Mudri, CEO of FintechX Technologies, these apps will manage people’s lives beyond just banking, allowing financial transactions through integrated platforms.
Experts agreed that while cash usage will likely decline gradually, its complete disappearance is not yet feasible, nor is it an immediate goal for the central bank. Currently, 60% of transactions in Hungary are still cash-based, according to Zsolt Selmeczi, CEO of GIRO Plc. However, Pogátsa believes a cashless society should be encouraged, suggesting that in 30–40 years, the idea of carrying coins for payment will seem quaint.
By 2030, the MNB aims to reduce the proportion of cash transactions in Hungary to below 30%.
György Gattyán, the father of LiveJasmin, an adult camming website, bought himself into the 68-year-old Playboy and believes, thanks to his investment, he could renew the franchise. His investment is worth HUF 112 billion (EUR 273 million), and the markets welcomed the news positively.
Gattyán to invest USD 300 million into Playboy franchise
According to Blikk, Gattyánis one of the wealthiest Hungarians. He became a minority shareholder in the iconic Playboy, one of the oldest erotic magazines. The paper, founded by Hugh Hefner, is present in 180 countries and has more than 80 million readers and followers. Today, the company runs Playboy TV, clubs and stores.
Based on information shared by the Securities and Exchange Commission of the USA, Gattyán plans to invest USD 300 million in Playboy through his Luxembourg company, Byborg, in 15 years. That means he will support the expansion of the franchise with USD 20 million every year until 2039. Furthermore, he will run Playboy’s online services and products.
Tamás Nemes, the communications director of Gattyán’s Docler Holding, said the market’s reaction to the acquisition was positive. Following the announcement, Playboy’s shares increased by 40-50% on average.
According to the agreement, Gattyán would bring more readers and viewers to the franchise. They aim to create premium online entertainment worldwide and expand the Playboy brand. In 2020, the company ceased to print Playboy magazines.
The Hungarian forint has taken a new hit, falling to a record low against the euro following the release of disappointing GDP data. The data paints a bleak picture of Hungary’s economy, showing a slowdown that has once again tipped the nation into a technical recession. According to reports from Portfolio.hu, the euro reached HUF 405.8 by 9 AM today, a level unseen since November 2022.
The latest currency drop follows an overnight spike, where the euro-forint exchange briefly surged to 405.7, setting a fresh low not experienced since January 2023, Portfolio reports. The downturn in the forint coincides with the announcement of Hungary’s third-quarter GDP figures, which revealed an economic contraction and an official return to technical recession status. Analysts are bracing for further fluctuations as additional data from the EU and the U.S. are set to be released, likely impacting market dynamics. For instance, Spanish economic data already spurred a rise in the euro, which in turn saw the forint gain slightly against the dollar.
Shocking GDP data signals technical recession for Hungary
Data from Hungary’s Central Statistical Office confirmed a 0.7% quarterly drop in GDP during Q3, a contraction much steeper than experts had predicted. Forecasts collected by Portfoliosuggested only a minor dip of 0.2%.
However, the reality proved far worse, as Hungary’s economy has now experienced back-to-back quarters of decline, putting it squarely back in a technical recession.
On an annual basis, GDP shrank by 0.7% after seasonal and calendar adjustments, and the raw data showed a larger 0.8% decline. For comparison, analysts had expected a modest growth of around 0.3%.
The last time Hungary faced such economic difficulties was during the energy crisis of late 2022. Since then, GDP growth has been inconsistent, with the economy shrinking in six out of the last nine quarters.
Economic Development Minister Márton Nagy had hinted at the likelihood of this downturn, suggesting during the Budapest Economic Forum that third-quarter growth would hover close to zero. This statement from the minister implied an anticipated economic decline compared to the previous quarter, leading market forecasts to be adjusted downwards.
However, today’s release still managed to shock investors, triggering a further plunge for the forint.
Market reactions and fluctuations
Following the release of GDP figures, the forint experienced a sharp decline against the euro, reaching a low point of 405.8, marking a level not seen since late 2022. Amidst the broader landscape of European economic updates, fluctuations in the currency market were noticeable. For instance, Spain’s strong economic performance, along with an unexpected inflation increase in October, bolstered the euro. France also reported better-than-expected GDP figures, prompting optimism around a potential economic recovery in Europe. With the European economy showing signs of life, the European Central Bank may delay interest rate cuts, which could strengthen the euro further against the dollar.
These developments have caused the forint to strengthen slightly against the dollar, with a 0.2% rise bringing the exchange rate to below 374 HUF/USD. However, the forint’s position against the euro remains largely unchanged, reflecting investor caution due to Hungary’s weak economic outlook.
The government has neglected to secure EU funding for Hungary for almost two years by now, Democratic Coalition (DK) MEP Klára Dobrev told an online press briefing on Tuesday, noting she has written to EU budget commissioner Johannes Hahn to ask “what the Orban government” had and hadn’t done to make sure Hungarians “receive the money they are entitled to”.
Quoting a European Commission report, she said Hungary had failed to fulfil the 27 “milestones” it had previously committed to, “so not a single payment request can be paid out right now”.
Hungary, she added, was at risk of losing about HUF 400 billion in 64 days’ time should Prime Minister Viktor Orbán “continue to play the role of the EU’s tantrum child”.
And if it is unwilling to fulfill the milestones next year, Hungary may be deprived of another HUF 400 billion (EUR 1 billion), she said. In 2026, lost funds could amount to HUF 1,000 billion (EUR 2.5 billion) as reconstruction money may also be imperilled, Dobrevinsisted.
The Hungarian forint has plunged to its weakest rate against the euro since December 2022, sparking concern among economists. Experts attribute this downturn largely to international factors, including a volatile geopolitical environment, but domestic policies also play a part. The future of the forint may depend heavily on the release of EU funds, though there remains uncertainty about their arrival.
Sharp decline in the forint
The week started poorly for the forint, with the currency hitting a four-month low against the dollar and sliding to HUF 404 per euro by the weekend—the weakest level in nearly two years. Csaba Szajlai, an analyst at Világgazdaság, pointed out in an interview with ATV News that the upcoming U.S. presidential election could influence the euro-forint exchange rate, with a possible Donald Trump victory expected to weaken the euro, while a win by another candidate might stabilise it.
Economist Csaba Lentner sees Hungary’s ongoing financial struggles with the EU as a primary factor in the forint’s decline, along with the Hungarian National Bank’s current losses totalling around HUF 3,000 billion (EUR 7.40 billion). Lentner believes that Hungary’s absence of EU funding is adding pressure to the currency, stating that the weak Hungarian currency could test the resilience of the economy, especially as the 2026 elections approach. Given the current economic climate, he suggests that the forint could fall as low as HUF 430 per euro.
Trust issues at play
Opposition MP Zoltán Vajda of the MSZP party argues that the Hungarian currency’s persistent decline has deep roots, noting that since 2010, the currency has lost nearly 50% of its value against the euro. According to Vajda, government actions have eroded investor confidence, worsening the currency’s situation. He added that if Hungary had already adopted the euro, people would no longer need to worry about the forint’s day-to-day volatility.
While both global events and government financial policy are weighing on the currency, experts caution that only short-term measures might bring any stabilisation. In the long term, however, a more substantial recovery for the Hungarian currency remains uncertain.
UPDATE: EUR/HUF exchange rate reaches 405
The forint fell to a new low on the second day of the week, hitting 405.231 on Tuesday at around noon, Economx reported. It then went back below 405 then reached that level again after 2 PM.
If it were up to the ruling Fidesz party’s group in the city assembly, Budapest would miss out on HUF 40 billion (EUR 100 million) of European Union funding, Gergely Karácsony, the capital’s mayor, said on Tuesday.
Referring to a proposal by the Fidesz group, Karácsonysaid they wanted to throw out a HUF 20 billion (EUR 50 million) housing programme prepared by the city administration and financed from EU coffers. Under the scheme, municipal rental units would be built and a rental subsidy provided to the needy, he noted.
Karácsony also said that Fidesz sought to transfer the city’s budget for green developments to the districts. “Even the poorest districts are now better off than the city,” he said, adding that he hoped the municipal assembly would not support Fidesz’s “crazy” proposals at its session on Wednesday.
The government will put around 40 more castles up for privatisation in January, Construction and Transportation Minister János Lázár said in Békéscsaba, in south-eastern Hungary, on Friday.
Local councils applying for the privatisation scheme will have to compete with well-capitalised companies like oil and gas company MOL, OTP Bank, pharmaceutical company Gedeon Richter, Magyar Bankholding and ICT group 4iG, Lázár said.
The minister said the upkeep of castles “tends to be the hobby of the richer localities” because of how much it costs, adding that the state had also made attempts to save Hungary’s castles, but it was necessary to involve private capital.
He said the Wenckheim Palace in Szabadkígyós, in the southeast, still needed 7.7 billion to 8.6 billion forints (EUR 19.1m-21.3m) worth of renovations. “A well-capitalised partner is needed that can invest in both its renovation and upkeep,” he said, adding that this would cost around 8-10 billion forints over the next ten years.
Wenckheim Castle. Photo: FB/Szabadkígyósi Wenckheim-kastély hivatalos oldal
Lázársaid there was a level playing field for all bidders for the Wenckheim Palace. He pointed out that the bidding companies also considered the preservation of historical monuments a part of their corporate social responsibility.
Photo: Instagram/NOF
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The minister of culture and innovation said on Friday that he had held consultation talks in Brussels about the relaunch of the Erasmus and Horizon programmes in Hungary because it was an obligation “to raise our voice for the success of Hungarian youth”.
Hankó told the press after a conference he had attended on European models and Hungarian experiences in science and innovation that he had held two meetings during the day that focused on education and employment.
He said he had held talks with Markus Schulte, cabinet chief of Innovation, Research, Culture, Education and Youth Commissioner Iliana Ivanova, and Directorate-General for Employment, Social Affairs and Inclusion Mario Nava, and informed them that a bill on renewed Hungarian institutions following a model change had been submitted to parliament.
Students at Semmelweis University. Photo: FB/Semmelweis
The bill includes regulations, already sent to the European Commission in November 2023, on conflicts of interest of board members and the one-year cooling off period, as well as the board members’ eligibility for two six-year terms, he said.
The two items not included in the bill concern the removal of rectors and university teachers from the boards, and NGOs making proposals on the selection of board members, he said, adding that “these go against our sovereignty and academic freedom”.
He expressed hope that with the help of the bill, the Hungarian government would achieve the discontinuation of a ban on Hungarian youth in Erasmusand researchers in Horizon.
Hungary, Serbia strategic partners, says Hankó
Hungary and Serbia are strategic allies, on a national level as well as in the areas innovation, science and culture, Balázs Hankó, the culture and innovation minister, said after talks with Serbian innovation minister Jelena Begovic and culture minister Nikola Selakovic in Belgrade on Thursday.
Begovic and Hankó agreed on setting up a Hungarian-Serbian innovation fund to promote university research on healthy living, the green transition and digitalisation. They also said they would strengthen ties between Hungarian and Serbian universities, and cooperate on building a BIO4 Campus in Belgrade “which is in line with Hungary’s science park model” based on joint research between universities, SMEs and corporations, he said.
Hungary and Serbia will also promote cooperation between young teachers and students through the Hungarian Pannonia Programme, Hankó said.
Meanwhile, Hankó and Selakovic agreed to launch a Hungarian-Serbian cultural season next year, showcasing both countries’ traditions in Hungary in the autumn of 2025 and in Serbia in spring 2026, he said.
Hankó also attended the Biotech Future Forum conference on biotechnology and AI, and held a speech on the progress of innovation in Hungary, and on the importance of the ethical use of AI in research.
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The Danube Institute, a prominent international ideological centre supported by the Orbán government, has spent over half a billion forints in public funds on foreign personnel over the past three years.
According to a report by Átlátszó.hu the institute’s activities, have raised questions about adherence to U.S. lobbying laws. Some U.S.-based collaborators reportedly authored political articles for American publications without registering as foreign agents, as required by U.S. law.
Source: Facebook / Orbán Viktor
The Danube Institute’s goals
The Danube Institute’s stated mission is to promote conservative and national values through conferences, publications, and research by visiting scholars. While it employs Hungarian experts, it also attracts foreign journalists, academics, and members of think tanks, many of whom regularly contribute to conservative media globally.
These visiting scholars, or “fellows,” receive substantial financial compensation, which forms a significant part of the institute’s budget. In recent years, operating costs have escalated: HUF 76.76 million (around EUR 200,000) was spent on visiting researchers in 2022, HUF 179 million (around EUR 460,000) in 2023, and a record HUF 284.6 million (around EUR 740,000) in 2024. These expenses are largely covered by public funds managed by the Lajos Batthyány Foundation, a public-interest entity.
In addition to funding researchers, the Danube Institute also supports conference speakers with its funding. While the highest speaker fee in 2024 was HUF 36.6 million (about EUR 94,000), most receive significantly less, with typical fees ranging from HUF 200,000 to HUF 400,000 (approximately EUR 500 to 1,000). These figures illustrate the institute’s growing financial investment in its international network.
The American connection
One of the Danube Institute’s key allies is the Heritage Foundation, a U.S.-based conservative think tank with an agenda that aligns closely with Orbán’s policies. This partnership could influence U.S. policy significantly if Donald Trump were to secure a second presidential term. The Heritage Foundation is leading the “2025 Project,” a strategic plan aimed at restructuring the U.S. federal government by placing Trump-aligned conservatives in key roles. Certain elements of this initiative are reportedly inspired by Orbán’s consolidation of power, reinforcing ties between the Heritage Foundation and the Danube Institute.
Source: Facebook / Orbán Viktor
Compliance issues with U.S. lobbying laws
Some of the Danube Institute’s U.S.-based collaborators have reportedly been commissioned to produce political content for U.S. media, raising potential compliance issues with the Foreign Agents Registration Act (FARA). Under FARA, individuals working on behalf of foreign governments or entities must register if they engage in political activities or lobbying in the U.S.
The Danube Institute employs foreign researchers who contribute to media outlets in both the U.S. and Europe, some of whom have contracts specifying a focus on U.S. media. This practice may qualify as lobbying and thus necessitate registration, as engaging in activities designed to influence public opinion in the U.S. on behalf of a foreign entity falls under FARA’s purview. As of now, no foreign researchers associated with the Danube Institute have registered under FARA, raising concerns about potential legal repercussions.
The global influence of the Danube Institute
While the institute’s U.S. initiatives have attracted considerable attention, its influence extends well beyond America. The Danube Institute has forged partnerships with numerous European think tanks and political entities, including organisations linked to the Polish government. These collaborations bolster Orbán’s ideological influence across conservative circles in Europe, cementing Hungary’s status as a model for right-wing political movements across the continent.
The National Bank of Hungary revealed the results of its inaugural survey on Hungarians’ financial health on Thursday.
The survey, which defined financial health as a feeling of financial security as well as the freedom to make one’s own financial decisions in the present and in planning for the future, was conducted among a representative sample of 1,500 people between the ages of 18 and 79 in August. Based on the results, the NHB rated Hungarians’ financial health on a scale of 0 to 100.
On average, Hungarians scored 53 on the NBH’s Financial Health Index, but 14pc were in the “critical” range, between 0 and 29, and 29pc were “vulnerable”, scoring between 30 and 49. The NBH noted that more than half of the households in those at-risk categories had net incomes under HUF 400,000/month. Around 35pc of Hungarians were in the “low-risk” category, scoring 50-69. Among the Financial Health Index sub-indices, Hungarians scored 48 for “ability and effort to make savings”, 56 on the gauge of material position and 49 for “financial resilience”.
Finance Minister Mihály Varga said international development banks needed to play a bigger role in managing crises after a meeting of the finance ministers and central bank governors of the G20 in Washington, D.C. in a statement released by his ministry on Thursday.
Varga, who represented the presidency of the Council of the European Union at the meeting, said the G20 finance ministers and central bank governors had approved the rollout of a three-pillar proposal on enhancing international development banks.
Outlining the pillars of the proposal, he said multilateral development banks needed to expand their financing capacity while ensuring their long-term financial sustainability. They must also make their financing and consulting services more accessible while stepping up the mobilisation of private capital and national resources. The third pillar focuses on increased efficiency by boosting geographical distribution and improving knowledge of local needs, he added.
The participants also discussed challenges facing the global financial sector. Varga noted that international financial systems had proven resilient even when financial stability was under threat during the pandemic and after the outbreak of the war in Ukraine. That stability can be preserved with the help of the development of cross-border payments, regulation of digital innovations and financial integration, he added. He said the G20 was committed to developing a framework for the use of cryptocurrencies.
Sándor Czomba, the state secretary for employment policy, said there was a “realistic chance” for the minimum wage to reach EUR 1,000/month and the average gross wage to climb to HUF 1 million/month by 2028, speaking on public television on Thursday.
Czomba told news channel M1 that the targets could be reached if GDP growth accelerated and inflation stayed predictably low. He added that talks between the government, employers, and unions about next year’s minimum wage increase and wage developments for the coming three years were continuing.
The government aims to raise the minimum wage to 50pc of the level of the average wage, excluding bonuses, in 2027, he said. That would bring the minimum wage to HUF 370,000-375,000/month, according to calculations at present, he added.
Achieving that level would require annual increases of 12pc, although the exact scale of the rise would depend on GDP growth, he said, adding that consensus between the sides had been reached on that point.
The government expects GDP to grow 3-4pc in 2025 and 4-5pc in 2026, he said.
On Wednesday afternoon, the Hungarian forint dropped to over 403 against the euro, marking its weakest level since September 2022 as the currency continued to decline on international markets. The forint is also struggling against the US dollar, hitting similar lows.
Hungarian forint plummets to two-year low
Although the forint saw slight gains in the morning, it began to weaken by midday, with the situation worsening in the afternoon. By 6:45 PM, the exchange rate had dropped to 403.29 forints per euro.
According to Portfolio, trading on the Hungarian stock exchange was halted due to the 23 October national holiday, making the currency more vulnerable to fluctuations.
Just two weeks ago, the forint had also surpassed the 402 mark, hitting a rate of 402.23 against the euro.
The forint crossed the 400 threshold on 4 October for the first time in six months, following a decline that began on 2 October as a reaction to the conflict in the Middle East.
