Wizz Air has begun accepting Revolut cards for onboard purchases following a successful trial period that started in early June. Previously, passengers were unable to use Revolut cards during flights, as the airline did not accept prepaid cards, a category under which Revolut was initially classified.
The shift in payment policy
Before the change, Wizz Air consistently informed passengers that Revolut cards could not be used for in-flight transactions, Világgazdaság reports. This policy was mentioned by flight attendants and printed in the in-flight catalogue. The issue arose from Wizz Air’s refusal to accept prepaid cards, which included Revolut’s earlier offerings.
In 2022, Revolut transitioned its European customers from prepaid to debit cards, following its establishment as a licensed bank in Lithuania. Despite this shift, Wizz Air continued to block Revolut cards until launching the trial this past June. During the test period, the airline monitored Revolut card transactions to determine whether they could be fully integrated into the onboard payment system.
Official confirmation
According to Revinfo.hu, Wizz Air’s PR team confirmed the trial, stating: “Wizz Air confirms that for a trial period, we permitted the acceptance of Revolut cards for onboard payments. We are closely monitoring the results and will shape our business strategy accordingly.” Passengers soon reported the news on social media, noting that Revolut cards were now accepted on board, which led to positive reactions, especially from frequent Revolut users who had encountered issues in the past.
Wizz Air’s earlier ban on Revolut cards was tied to its policy against prepaid cards, which Revolut had issued before 2022. There may have also been concerns about fraud or transaction processing issues, although Wizz Air never publicly stated the specific reasons behind the restriction.
After Revolut switched to issuing debit cards in 2022, Wizz did not immediately update its onboard policy. Passengers often found the outdated restriction confusing, particularly as Revolut’s new debit cards functioned similarly to other accepted forms of payment. The restriction on Revolut was still mentioned in onboard catalogues, but this is no longer the case, and the airline’s online version has been updated.
Expanded payment options
The inclusion of Revolut as an accepted payment method enhances the in-flight experience for many passengers. Revolut is known for offering digital banking services, including currency exchange and budgeting tools, which make it a convenient choice for travellers. Alongside Revolut, Wizz accepts major credit and debit cards, such as Visa, Mastercard, and American Express, but does not allow cash transactions on board—a common practice among low-cost carriers to streamline payment processes.
Benefits for Wizz Air and passengers
Source: Wizz Air
As one of Europe’s largest low-cost carriers, Wizz is constantly seeking ways to improve customer satisfaction while maintaining efficiency. The airline, which flies to over 190 destinations across Europe and beyond, generates additional revenue through in-flight sales, baggage fees, and other services. By adding Revolut as a payment option, Wizz Air is better accommodating the growing number of digital banking users, thereby enhancing onboard convenience.
This adjustment reflects the airline’s responsiveness to changing customer preferences, particularly as Revolut continues to grow in popularity across Europe. The introduction of Revolut payments could also lead to more innovations in Wizz Air’s services as it seeks to provide passengers with a modern and seamless travel experience.
In conclusion, Wizz Air’s decision to accept Revolut cards marks a positive shift for both the airline and its passengers. Revolut users can now enjoy greater payment flexibility on board, while the airline benefits from meeting the evolving needs of its diverse customer base.
Global wealth began to rise again last year, with Hungary witnessing an increase of over 200% in average wealth per adult since the financial crisis. However, premium banking clients are now seeking to move their assets abroad in search of more favourable transaction fees. This trend could threaten cash flows and the broader Hungarian economy. Meanwhile, foreign currency loans are reaching record levels.
International trends and Hungary
As Portfolio writes, global wealth resumed its growth last year, with lower-income adults in Hungary experiencing faster growth in wealth than those in higher brackets, according to a recent UBS study. Despite this, Hungary saw an 8% decline in average wealth per adult in 2023 when measured in Hungarian forints. Yet, since the 2008 financial crisis, average wealth per adult in Hungary has more than tripled, ranking it eighth globally in terms of growth. The study also highlighted a significant disparity between average and median wealth, a pattern evident in Hungary.
Hungarians seek to move their fortunes abroad
According to Szeretlek Magyarország, the recent introduction of financial transaction levies and additional charges for currency conversion in Hungary is unlikely to drive the wealthy to move all their assets abroad. However, 10-30% of their actively managed savings may be relocated to foreign providers, as reported by hvg.hu based on Blochamps Capital’s analysis.
The National Bank of Hungary (MNB) has observed a significant shift, with financial institution deposits falling by nearly HUF 1,200 billion (EUR 3 million) in July, while foreign currency deposits rose by HUF 492 billion (EUR 1.25 million). This shift is directly linked to the new measures, particularly affecting premium banking and affluent clients, who may find the extra 0.9% transaction fee a more significant burden. Consequently, there is growing interest among these clients in opening foreign accounts, particularly with banks offering international networks.
Photo: deposiphotos.com
Why is this a problem?
István Karagich, the managing director of Blochamps Capital, warns that while it is unlikely that a significant portion of Hungary’s wealthy will move their entire wealth abroad, the relocation of 10-30% of their regularly invested assets to foreign providers could pose serious risks. Such a shift could reduce cash flows within Hungary, negatively impacting financial markets and the broader economy. To maintain the profitability of financial service providers and bolster investor confidence, it is essential to keep as much wealth as possible in Hungary, actively participating in local financial markets. A decrease in circulating funds could also lower public revenues, making long-term economic financing more challenging.
Surprisingly high rate of foreign currency loans
Telex reports that foreign currency loans now account for nearly half of all corporate loans in Hungary, a level not seen since a decade ago. The total stock of corporate loans reached HUF 12,780 billion (EUR 32.5 million) by the end of June, with most of this year’s increase driven by exchange rate changes, as the EUR/HUF rate climbed from 382 to around 395.
In addition, the rise in foreign currency loans, now totalling HUF 6,297 billion (EUR 16 million), is attributed to the scarcity of state-subsidised loans and the rising cost of forint loans. Foreign currency loans are primarily utilised by companies with substantial foreign currency revenues, such as exporters and real estate operators. However, for firms with forint revenues, these loans remain risky due to exchange rate volatility, as experienced during the 2008–2009 financial crisis.
According to the latest Big Mac Index from The Economist, Switzerland and Norway remain the most expensive countries in the world. In these two European nations, a Big Mac costs EUR 6.71 and 6.26, respectively. In contrast, Hungary ranks at the bottom of the list, with an average price of just EUR 2.65 for the same sandwich.
The Big Mac Index
A Big Mac menu in a Ukrainian McDonald’s restaurant. Photo: depositphotos.com
The Big Mac Index was introduced by The Economist in 1986 as a quirky way to measure purchasing power parity across countries. Since then, it has become a widely recognised global economic indicator, Pénzcentrum writes. The index compares the price of Big Macs in different countries to the price in the United States, offering insights into economic conditions and serving as a practical tool for gauging consumer purchasing power worldwide.
In the United States, a Big Mac typically costs around EUR 5.15, though prices vary by region. Of the 78 countries included in the index, only five—Switzerland, Norway, Uruguay, Sweden, and Canada—have local average prices higher than those in the U.S.
Switzerland tops the list with a price of EUR 6.71, which is about 30.3% higher than the U.S. average.
This substantial difference is driven by factors like higher labour costs, different purchasing power, and taxes. Following Switzerland are Norway, Uruguay, Sweden, and Canada, each with varying degrees of price differences.
On the other hand, countries like Lebanon, Israel, and the United Arab Emirates have slightly lower Big Mac prices compared to the U.S. In Lebanon, for instance, a Big Mac costs EUR 5.08. In several European countries, such as Andorra, Austria, and Belgium, Big Mac prices are about 7.47% lower than in the U.S.
At the bottom of the list, the ten countries with the lowest Big Mac Index include Turkey, Hungary, Taiwan, Malaysia, Egypt, India, Indonesia, South Africa, Romania, and Venezuela. In Venezuela, a Big Mac costs just EUR 1.76, reflecting the country’s ongoing hyperinflation and currency devaluation. These significant price disparities highlight the varying economic conditions across the globe.
Undervalued and overvalued currencies
The index also reveals the extent to which national currencies are either undervalued or overvalued relative to the U.S. dollar. The Uruguayan peso, for instance, is overvalued by 51.8%, while Taiwan’s dollar is undervalued by 59.3%. Overvaluation means that, based on the per capita GDP differences, a Big Mac should cost less in a particular country than in the U.S., but it ends up being more expensive. Undervaluation is the opposite.
According to The Economist’s latest rankings, other significantly overvalued currencies include the Argentine peso (47%), the Swiss franc (45.6%), the Norwegian krone (22.5%), and the Costa Rican colón (20.6%). In the eurozone, the euro is overvalued by 19.7% compared to the U.S. dollar, while the British pound is overvalued by 14%.
In stark contrast, the Hungarian forint is undervalued by a significant 20.3%, as indicated by the Big Mac Index.
This spring, the Hungarian government secretly borrowed a EUR 1 billion loan from China, with the lump sum being withdrawn on 19 April, a fact only revealed at the end of July. This loan adds up to a debt of around EUR 1 billion, and when combined with other loans, Hungary’s total debt to China could be significantly higher.
Hungary in significant debt to China
444has compiled a list of the outstanding debts, primarily using data from the Public Debt Management Centre (ÁKK). Their findings show that in just three years, the Hungarian government has accumulated considerable debt to China. By the end of the second quarter of this year, Hungary owed HUF 71.79 billion (EUR 182 million) to the Asian Infrastructure Investment Bank, a debt first incurred in the last quarter of 2022.
Earlier, in the second quarter of 2022, Hungary secured a loan for the construction of the Budapest-Belgrade railway line. So far, they have drawn down HUF 341.6 billion (EUR 866 million) for this project. The total investment for the railway amounts to HUF 750 billion (EUR 1.9 billion), of which 85% is being financed by loans and 15% by co-financing. Additionally, in the spring of this year, Hungary requested a loan of EUR 1 billion in complete secrecy by the end of the second quarter, according to the ÁKK’s accounts.
On top of these loans, Hungary also has CNY 3 billion worth of foreign currency bonds due for repayment to Chinese investors this year and next, which equates to around EUR 380 million at the current exchange rates. In total, 444 estimates Hungary’s debt to China now exceeds HUF 1,000 billion (EUR 2.536 billion), although they caution it could be even higher.
Hungary deepens strategic ties with China amid EU concerns
While the European Union views China’s foreign economic policy as increasingly challenging, the Hungarian government seems unfazed by the growing vulnerability to China. In fact, Prime Minister Orbán’s administration has been steadily facilitating China’s presence in Hungary, beginning with the high-profile joint Hungarian-Chinese Budapest-Belgrade railway project.
In pursuit of diversification, Hungary then opened up to Chinese investors by issuing yuan-denominated government bonds, followed by the idea of establishing Fudan University in Hungary. Chinese investments, particularly in the battery industry, were also encouraged, culminating in the deployment of Chinese police officers in Budapest and the acceptance of a large Chinese loan. The government has kept the details of this loan under tight wraps.
18 joint investment agreements signed in May
During Chinese President Xi Jinping’s visit to Hungary in May, the two nations’ leaders signed 18 joint investment agreements as part of a strategic partnership.
Among these agreements, they planned to expand Hungarian-Chinese cooperation across the entire nuclear industry spectrum, begin preparations for constructing a railway ring around Budapest (previously known as the V0 ring), and initiate work on a high-speed railway project connecting Budapest city centre with Ferihegy airport.
Additionally, they are working on jointly developing an electric car charging network, starting construction on Europe’s “most modern, largest, safest, and fastest transit” border crossing between Hungary and Serbia, and exploring the possibility of an oil pipeline between Hungary and Serbia, involving Serbian participation.
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As real estate prices continue to rise, many are choosing to invest in property as a way to protect and grow their wealth. However, not everyone can afford to purchase full residential properties at current prices, prompting some to turn to garage investments as a more budget-friendly option. This trend is reflected in the market, with garage prices rising significantly. Pénzcentrum took a look at what kind of garages are available for as much as HUF 50-60 million (EUR 126.7 thousand-152 thousand), and even examined the most expensive listing, priced at an astounding HUF 229 million (EUR 580 thousand).
The rising number of cars on the road has naturally increased the demand for garages and parking spaces, but the supply hasn’t kept pace with demand. As a result, prices for both parking spaces and standalone garages have steadily climbed over the past few years. Last year alone, garage prices across the country increased by an average of 10%, Pénzcentrum reports.
In Budapest, the average price for a garage hit HUF 7.2 million (EUR 18.2 thousand) in September, marking an 11% year-on-year increase. The trend was not limited to the capital; similar price hikes were seen in other large cities across Hungary. Interestingly, unlike in most markets where an increase in supply usually leads to price stabilisation or a drop, the garage market has continued to defy this pattern.
Smaller investment, solid return
According to Otthon Centrum, the first quarter of this year saw a slight easing in garage prices in line with broader real estate trends, but garages remain an attractive investment, especially for those with smaller budgets who are unable to afford an entire home. Despite requiring a smaller initial investment, garages can still yield solid returns, sometimes comparable to residential properties.
The average sale price for garages nationwide has hovered around HUF 6.5 million (EUR 16.5 thousand) in recent months. The type of garage significantly affects the price; standalone garages tend to be more expensive than parking spaces in shared garages. Demand for garages is particularly strong in downtown Budapest, where the starting price for a parking space in a shared garage is around HUF 6 million (EUR 15.2 thousand), while more spacious or premium locations can cost up to HUF 8-9 million (EUR 20.2 thousand-22.8 thousand). Similar trends can be seen in regional cities, where prices typically range from HUF 5 to 6 million (EUR 12.7 thousand-15.2 thousand).
Experts from Otthon Centrum noted that while garages require a lower investment than residential properties, the income generated from renting them out is also lower. However, in some cases, the returns can be just as high, if not higher. For those unable to invest larger sums, garages represent a promising opportunity.
Data from OTP Otthon confirms that garage prices tend to follow the overall trends in the real estate market. According to Bohus Péter, PR manager at OTP Otthon, after a market dip in March 2024, garage prices began to climb again, exceeding an average of HUF 10 million (EUR 25.3 thousand) by July. He also highlighted that while garage rental prices are rising, they still lag behind residential rental rates.
According to the real estate listing website otpotthon.hu, the average monthly rental for a garage in Hungary is around HUF 32,000 (EUR 81), with prices in Budapest slightly higher at HUF 35,000 (EUR 88.7). Garages are also less prone to wear and tear compared to rental properties, making them a low-maintenance investment.
Top 5 most expensive garages on the market
Pénzcentrum checked the current listings on ingatlan.com and compiled a list of the priciest garages on the market to see what justifies their hefty price tags. The list focuses on standalone garages.
5. Budapest, 12th district, Tamási Áron Street: HUF 30.5 million (EUR 77.3 thousand)
The fifth entry on the list is a 36-square-meter garage in Budapest’s 12th district. The space, which is equipped with an automatic garage door, can accommodate two cars and remains comfortably warm in winter due to the house’s heating pipes running through the area. The seller recommends the property as an investment for rental purposes.
4. Budapest, 1st district, Fazekas Street: HUF 37.5 million (EUR 95 thousand)
In the 1st district, buyers can find a 32-square-meter heated garage for HUF 37.5 million. While in good condition, this garage lacks an automatic door, which might be a drawback for some.
3. Dunaújváros, Budai Nagy Antal Road: HUF 39.9 million (EUR 101 thousand)
A rare non-Budapest entry makes the list in third place. This unique property was created by combining six adjacent garages into a single 80-square-meter space. The garage is fully renovated, heated, and equipped with a security system. The listing suggests it could also be used as a workshop or storage space.
2. Budapest, 2nd district, Káplár Street: HUF 59 million (EUR 149.5 thousand)
For nearly the price of a small apartment, a buyer can purchase a 69-square-meter garage in one of Budapest’s most desirable districts. This large garage, which needs some renovation, can fit up to four cars. It’s situated near the Mammut Shopping Center and Millenáris Park, making it a rare find in a high-demand area with few standalone garages available.
1. Budapest, 13th district, Esztergomi Street: HUF 229 million (EUR 580.5 thousand)
The most expensive listing is a 411-square-meter space located on the ground floor of a new building in Budapest’s trendy Vizafogó neighbourhood, near the Forgách Street metro station. While officially categorised as a garage, its size and large glass windows overlooking a garden make it suitable for conversion into an office, showroom, or even a medical practice. This unique property offers flexibility well beyond traditional garage use.
As demand for parking spaces continues to rise, these luxury garages have become sought-after investments, with some even reaching the price of small apartments in Budapest.
The Hungarian Maltese Charity has launched a campaign to invite donations of school equipment for children in poor families, the organisation told MTI on Wednesday.
Between Wednesday and Saturday, volunteers of the charitywill receive pens, excercise books, pencil boxes, school bags and other equipment at their stands set up at Interspar supermarkets, where those accessories can be purchased, their statement said.
The volunteers will sort the donations into packages and send them locally to needy children before the start of the academic year, the statement said.
Interspar also offers vouchers between 500 and 10,000 forints (EUR 1.3-26) that can be donated, the statement added.
The government is carrying on with its wage hike programme for teachers as it has promised, bringing teachers’ salaries to 80 percent of the average wage of degree holders, the head of the Prime Minister’s Office said on Thursday.
Government to carry on with teachers’ wage hike programme
Gergely Gulyástold a regular press briefing that the government meeting on Wednesday reviewed the situation of public education, ahead of the start of the new academic year.
With this year’s wage hikes, teachers’ wages have reached 670,000-680,000 forints, Gulyás said. That will be followed by a 21 percent raise on January 1, 2025, and the trend will continue until 2030, in line with the government’s pledge to keep teacher’s wages at least at 80 percent of the average salaries of degree holders, he added.
The average gross wage of degree holders is expected to be around monthly 1.25 million forints (EUR 3,180) in 2025, and teachers’ wages will be raised to 820,000 forints. “Very optimistic estimates” put teachers’ wages above 1 million forints by early 2027, he said.
More and well-paid teachers, happier children? Photo: depositphotos.com
Public education is of paramount importance for the future, including the prestige and financial appreciation of teachers, Gulyás said. “This is the profession that lays the foundation to the knowledge of future generations of their own homeland and the world around them,” he said.
Family support transferred early for start of school year
Government spokeswoman Eszter Vitályos said September’s family support and childcare benefits would be disbursed early this year in order to reduce parents’ burdens and help the start of the school year.
Vitalyás said the Hungarian Post will start delivering the payments on Friday and the State Treasury will start to make bank transfers on the same day. As a result, some 1,1 million families can receive the family support benefits ahead of the start of the school year.
The government will again provide free textbooks to all students in public education and vocational training, and through the local governments, free or low cost meals will be provided to students in large families and to families that raise disabled children.
Some 13 million text books and 70,000 other materials will be delivered to 4,100 schools, for 1,2 million children, she said.
Public schools have seen a substantial digital development in the past five years, with some 500,000 notebooks distributed to 5-12 graders, 200 smart text books were developed and students and teachers now have access to thousands of digital teaching materials, she said.
Class trips to Lake Balaton
Vitalyás said the school development of the past years had been “unprecedented”, with the development of 5,680 kindergartens and schools, and with 220 projects under way to construct swimming pools, gym halls and classrooms, as well as entire schools and one kindergarten.
Vitalyás said the state-funded Erzsébet camps were now operating year-round, and classes were able to organise school trips to Zánka, at Lake Balaton, in autumn, spring and the Advent season.
Photo: facebook.com/erzsebettaborok
Meanwhile, older students now have access to funding for driving and language tests. Since its introduction in 2018, some 196,000 students have received support for driving tests, and 187,000 have been refunded for their successful language exams, Vitalyás said. The government has ploughed 4.9 billion and 6.5 billion forints into the two projects, respectively, she added. Courses for the driving exams have been free for students in public education since January 1, 2024, she said.
Further, the government is working to maintain and possibly expand family support. Tax cuts have left some 4,500 billion forints with families between 2011 and 2023, and under-25s are exempt from the personal income tax, she said.
Oil transit problems likely to be resolved
Gulyás said a solution appears to have been found for the problem of oil transits, with oil company Molmost likely able to sign the necessary agreements to ensure that crude oil transits through Ukraine to Hungary are not getting blocked.
“Technically, this will mean that even though the transport is more costly and Mol must bear risks from the Russia-Ukraine border, there is a legal solution that guarantee future” transits, he said.
He expressed hope that crude oil supplies will be secure in the long term on the route that is under threat in terms of transits.
Gulyás said it was regrettable that the European Commission had not taken action to protect the member states. “Despite this, I must say that it appears energy security can be guaranteed in the long term with the help of these agreements,” he added.
He said that neither Hungary nor Slovakia had received any form of support from Brussels.
Brussels failed to protect EU members, the Orbán cabinet believes
He added that Brussels had failed to protect EU members from the actions of a non-EU member that violated its accession agreement signed with the EU.
Gulyás said it was hoped that the solution would guarantee Hungary’s crude oil supplies and energy security in a period when a war is under way and energy acquisition and supplies belong among ther most important issues throughout Europe.
Meanwhile, the government had called on the justice minister to review possibilities to sue the European Commission for compensation for the costs Hungary had incurred due to migration, Gulyás said.
“We can say that Brussels is working to force us to allow migrants into the country,” Gergely Gulyás told a regular press conference.
Government mulling suing EU for compensation of migration costs
Hungary has also been fined for operating transit zones at the border, even as the new migration pact “has partially taken over those good Hungarian practices”, he said.
The protection of the Schengen Area’s external borders “is also a joint issue, not only Hungary’s, as it is important for the whole of Europe, rather than just protecting Hungary from migration.” At the same time, Hungary is being denied access to EU funding earmarked for border protection that is available for other countries, he said.
Photo: FB/Máté Kocsis
Gulyás said the interior and justice ministers were looking into “offering all migrants at the Hungarian border to transport them to Brussels, voluntarily and for free, adhering to European procedures”, should the EU continue to try to strong-arm Hungary into adopting regulations that would make it impossible to keep migrants away from the country.
“If Brussels wants migrants, it can get them,” he said and expressed hope that the lawsuit would result in forcing the EC to bear part of the burdens and sign a sensinble agreement as soon as possible to correct the “unacceptable, unbrearable and unfair” situation that results from a European Court decision.
If this does not succeed then “Hungary does not wish to pay daily fines endlessly” but will make it possible for those willing to get a one-way ticket to Brussels where “they can safely negotiate with the European Commission on the services they are to receive”.
Digital citizenship programme will be launched in September
Responding to questions, Gulyás said the European Commission had “no answer as to why they did not help with the blockade of crude deliveries”. As Ukraine is under attack, “the fashion in Europe these days is to stand by Ukraine,” he said. While that is understandable, “it is wrong and a mistake to think that Ukraine can do anything.”
Hungary’s digital citizenship programme will be launched in September and “will be fleshed out by next summer”, enabling Hungarians to conduct their affairs on the internet, “instead of the current complicated and out-of-touch state systems,” Gulyás said.
Asked about the state of Hungary’s budget, Gulyás said liquidity was ensured for “months, years”. He acknowledged that consumption had fallen behind expectations in the past few months, and said the bad economic environment in Europe, especially stagnation in Germany, was hobbling Hungarian growth. While the Hungarian economy is not growing at the expected pace, it will still be in the top third of European economies, he said. A 3.5-4 percent GDP growth is expected, he added.
Commenting on the arrest of the mayor of Budapest’s 3rd district on suspicion of graft, Gulyás said the scandal was further proof that “the left is riddled with corruption cases.” Noting that the nominating parties were standing by the mayor, who is now in pre-trial detention, Gulyás said those parties would have to ensure leadership in the district. For further developments, the procedure will have to be conducted “to see whether he can carry on leading the district,” he said.
Magyar was attempting to “smear the performance of health-care workers”
Commenting on remarks by Péter Magyar, the leader of the Tisza party, on the state of Hungary’s health-care system, Gulyás said that Magyar was attempting to “smear the performance of health-care workers.” He said those “working under such circumstances” deserved thanks, adding that it was a credit to the “resilience” of Hungarian health care that the extraordinary heat had led to a mere 5 thousandths of operations being postponed.
Gulyás said air conditioning was not effective in heats above 36 degrees Celsius as it could only reduce temperatures by 10 degrees. Since extreme temperatures were expected to become regular, the minister said hospitals needed special protocols to deal with the situation, noting that Mediterranean countries routinely rescheduled non-vital operations in extreme weather.
At the same time, Gulyás said hospital AC systems had been assessed and faulty equipment was being repaired or replaced, “although that doesn’t happen from one day to the other”. In other places, the hospital’s electric system could not cope with the increased demand, he said, but added that increasing the capacity of those systems would require “incredibly high sums”. The aim is to air condition all rooms where care is carried out, he added, however.
The government had ploughed significant funds into repairing and installing air conditioners in hospitals, and will continue to do so, Gulyás said. Health care remains a priority for the government, as mirrored in the wage hikes for doctors and nurses, and their increasing numbers, he said. The government paid all debts of Hungarian hospitals in June, and has allocated a 12.5 billion forint surplus to health-care spending to avoid further accumulation of debts, he added.
School-starter support
Gulyás said the government’s clearly expressed expectation was that when the world marker price of fuel drops, this should be reflected in domestic retail prices. There are various forms of intervention, “we prefer dialogue” which has been successful so far, he said. Asked why the 100,000 forint school-starter support granted to ethnic Hungarians beyond the borders was not extended to Hungarians at home, he said those with children in Hungary were already getting numerous forms of support and tax benefits, while those beyond the borders were getting “nothing”.
Commenting on claims that the state had bought three office buildings at excessive prices, he said it was the best solution to stop paying annual rent and instead move the state’s institutions to properties of its own. He added that an annual 60 billion forints was paid for rent, and by buying the buildings, this investment would return in 9-10 years. He also said that they were extremely energy efficient buildings that are suitable for special government demands. He added that he did not consider the purchase “a bad deal”.
Jobbik proposes 100,000 forints aid for each school starter
The opposition Jobbik-Conservatives party is proposing that each child starting school should receive a grant of 100,000 forints (EUR 250), deputy leader Dániel Z Kárpát said on Wednesday. The MP said Hungarian families “do not in fact receive any assistance” when their children go to school, adding that the government’s paying family allowances earlier made them “miss that amount” from their budget later on. On average, sending a child to primary school costs between 50,000-75,000 forints to start with, while “within weeks after the start of the school year, they may be required to come up with extra amounts required by the school,” he said.
Z Kárpát said the subsidy could easily be financed “from one half or one third of a major state project”.
Ceasefire and peace talks
Commenting on the Ukraine-Russia conflict and the fights spreading over to Russian areas, Gulyás said the government’s position was unchanged in that ceasefire and peace talks were needed and all developments that go against this were disagreeable. He also said that the warring sides should handle all issues concerning energy security keeping in mind that they are not only disputes between them but matters that are important to the whole of Europe’s energy security.
Concerning plans for a fast railway link between the city and Ferihegy, he said the question is not whether this would be built, but when it would happen. If it is not connected to existing tracks, then implementation could take longer, around 4-5 years. A decision in the matter is expected this year, he added.
In response to a question, Gulyás said the explosions on the Nord Stream pipeline were acts of terrorism. “There are means that are unacceptable even if someone is under attack,” he added.
Ever since the start of the Russia-Ukraine war, Hungary understands that there is a risk that the operation of the Friendship Pipeline becomes impossible. It is partly why Hungary has such considerable reserves of natural gas and crude oil, unmateched by most European countries, he added. Gulyás said that “according to the current situation”, some 56 percent of annual consumption is ensured in the country.
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The opposition Democratic Coalition (DK) has criticised the HUF 15 billion (EUR 37.9 million) earmarked by the government to be spent on the 20 August firework display.
EUR millions for Budapest fireworks
“The fireworks show is an important tradition and a good holiday programme for families, but spending this much on it is an irresponsible waste of money,” the party’s spokesman said on Saturday.
Balázs Barkóczi told an online press conference that he agreed that the 20 August celebrations of the foundation of the Hungarian state were one of the most important events for the country “this amount of money cannot be spent when the state is otherwise defunct in practically all areas of life.” He pointed out inadequate air conditioning in hospitals causing postponement of surgeries, financial difficulties of thousands of families with the school-start for their children and cuts in the central budget affecting the financing of public transport.
Barkóczi said that part of the HUF 15 billion should be spent to remedy those problems.
Revolut has decided to establish a branch in Hungary, bringing several benefits to its customers in the country. However, the company’s Hungarian manager has clarified that they do not intend to apply for a banking licence to operate as a subsidiary. The Hungarian National Bank has been encouraging Revolut to join the National Deposit Insurance Fund to simplify administration and provide greater security through deposit guarantees.
Revolut expands with a new branch in Hungary
In an interview with Portfolio.hu, Tamás Léder, Revolut’s country manager for Hungary, discussed the Lithuanian company’s future plans. Mr Léder revealed that they intend to launch a Hungarian branch, which will include local customer service and Hungarian bank account numbers, both of which are expected to boost Revolut’s popularity in Hungary.
The Lithuanian-based global neobank has operated in Hungary for several years. According to Mr Léder, the company already has 1.5 million users in the country, with ambitions to increase that number to 2 million by 2025. Currently, Revolut’s user penetration rate in Hungary stands at 15%, with only Romania and Ireland (at 56%) having a higher proportion of users within the European Union.
Photo: depositphotos.com
The Hungarian National Bank previously sought to persuade Revolut to establish a subsidiary in Hungary, but the company declined. Mr Léder noted that Revolut operates branches in countries such as France, Ireland, the Netherlands, and Spain, while they are currently in a pilot phase in Germany. He emphasised that the decision not to establish a Hungarian subsidiary was a strategic business choice made by Revolut’s management.
Revolut could become the primary bank for many
Mr Léder assured customers that their deposits are protected under Lithuania’s deposit insurance scheme and noted that the European Central Bank has been overseeing Revolut’s operations since 2024.
Establishing a branch in Hungary would allow the financial technology company to tailor products specifically for the local market and issue Hungarian IBAN numbers. This could position the financial technology company as the primary bank for hundreds of thousands of Hungarians and expatriates living in the country.
Mr Léder highlighted the surprisingly large number of Hungarians who currently transfer their salaries to Revolut accounts. However, this process can be cumbersome, as the funds are technically transferred to a Lithuanian account, leading to delays and potential costs. The introduction of Hungarian IBAN numbers would eliminate these issues.
Transaction tax: a competitive edge
Mr Léder pointed out that the company’s customer base in Hungary predominantly consists of higher-income individuals. Additionally, the proportion of paying customers is among the highest in the EU.
He also mentioned that Revolut pays Hungary’s transaction tax, considering it a competitive advantage. From 1 October, transactions involving currency conversions will be subject to an increased levy, raising the tax from 0.3% to 0.9%, capped at HUF 20,000 (EUR 50.8). Physical currency exchanges will see their tax rate rise to the general level of 0.45%. However, Revolut does not plan to pass these additional fees on to customers in the immediate future, although no long-term promises can be made.
Lastly, Mr Léder revealed that the Lithuanian financial technology company is eager to expand its presence in Hungary’s corporate market, where it currently serves nearly 7,000 clients.
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Budapest-based Indotek Group, a prominent European real estate investor and asset manager, has purchased the Espacio León shopping centre in Spain for nearly EUR 50 million. The property was previously owned by the American investment firm Blackstone Inc., according to a statement released by Indotek.
Government-close Indotek Group acquires Spanish shopping centre
The Espacio León shopping centre in Spain, acquired by the Indotek Group. Photo: espacioleon.es
The acquisition, located in the Castilla y León region of Spain, was financed by Banco Santander. Espacio León, originally opened in 2004 and refurbished in 2018, attracts approximately 4.1 million visitors annually, Telex reports. The shopping centre boasts 112 retail units, 1,277 parking spaces, and a leasable area of 36,914 square metres, currently operating at 93% occupancy.
Indotek Group, which already owns a portfolio of 1,600 hotel rooms on Spain’s coast, has been expanding its presence in the Iberian Peninsula. In addition to shopping centres, the group’s interests in the region include retail parks, supermarkets, and industrial properties. Last year, the company also acquired two shopping centres in Valencia and Barcelona.
With operations across 13 European countries, Indotek Group is owned by Dániel Jellinek, a businessman whose ventures have benefited from government-backed investments. In recent years, some of Jellinek’s interests have financially benefited István Tiborcz, the son-in-law of Hungarian Prime Minister Viktor Orbán, through preferential shares.
Jellinek’s notable success from government-backed investments
Dániel Jellinek, owner of Indotek Group. Photo: Indotek.hu
In 2023, Indotek acquired a 47% stake in the Hungarian operations of the French retailer Auchan, as well as 100% of the so-called “corridor” business, which manages the commercial spaces located outside supermarket checkout areas, including pharmacies, key-cutting services, and various other shops.
Jellinek’s companies have also had notable success in securing government support for projects, such as the Kisfaludy programme, which funds regional hotel development. Investigative reports by Válasz Online revealed that Jellinek’s interests were among the key beneficiaries of a state-funded capital programme managed by the Hungarian Development Bank (MFB), which allocated substantial resources to his ventures.
Jellinek is one of Hungary’s wealthiest individuals, with his business empire transferring approximately HUF 27 billion (about EUR 70 million) to István Tiborcz’s business circle between 2019 and 2022. This period also saw a similar amount mysteriously appear in Tiborcz’s most significant company, though the origin of these funds remains undisclosed, with Tiborcz refusing to provide an explanation when questioned.
Hungary will contribute EUR 32 million to European Space Agency (ESA) programmes in 2025, the foreign ministry’s commissioner for space research said on Sunday.
Speaking on the last day of a rocket and spacecraft construction camp in Baja, in the southwest of the country, Orsolya Ferencz said Hungary’s ESA payments had quintupled over the past six years. Space research in Hungary has advanced “at rocket speed” since the foreign ministry took over coordination of the sector six years ago, she added.
She said a network of CanSat laboratories, which support students’ preparations for participation in the ESA CanSat space industry contest, would continue to be expanded.
The camp in Baja brought together the best Hungarian students competing in the CanSat contest. Rockets built from cardboard and wood by seventeen students at the camp were launched to a height of 300-400 metres on Sunday.
In Hungary, funeral services have seen price increases significantly above the average inflation rate. Over the past year, the costs of both traditional burials and cremations have risen by around 10%. According to Katalin Palkovics, president of the Hungarian National Association of Funeral Service Providers, these increases are driven by higher prices for essential materials, energy, and labour—costs that providers have had to pass on to customers.
Many Hungarians unprepared for a funeral’s financial burden
Photo: depositphotos.com
This sharp rise in expenses, coupled with a severe labour shortage in the sector, makes it increasingly difficult for families to finance burial services, according to Pénzcentrum. Gergely Novák, owner of Télizöld Funeral Service Plc., noted that many Hungarians are unprepared for the financial burden of a funeral, which can place significant strain on family budgets. His company has recently launched an online service allowing clients to handle all funeral arrangements from home, a step towards modernising the industry and making the process more accessible.
In July 2024, consumer prices in Hungary were 4.1% higher than a year earlier, with services seeing a 9.1% increase. However, burial services have outpaced these figures, with a traditional burial now costing an average of HUF 442,080 (EUR 1,121), up 9.65% from HUF 403,500 (EUR 1,023) last year. Cremations have similarly risen by 10.44%, now averaging HUF 318,820 (EUR 808).
The growing preference for cremation is also notable, driven by its lower cost, smaller environmental impact, and reduced long-term expenses. However, the price gap between traditional burials and cremations has widened to over HUF 123,000 (EUR 312), reflecting the ongoing financial pressures in the industry.
Rising costs of raw materials, labour, and energy
Palkovics highlighted that the rising costs of raw materials, labour, and energy are significant factors behind these price hikes. The funeral industry, reliant on skilled and emotionally resilient workers, is facing a critical shortage of new entrants. This shortage is exacerbated by the physically and emotionally demanding nature of the work, along with limited career prospects and training opportunities.
The increasing costs are not just a local issue; across Europe, the average cost of a funeral equates to about two months’ salary. In Hungary, however, this cost is relatively lower, though still a considerable financial challenge for many families. The trend towards simpler, less formal ceremonies is growing, with many families opting for fewer supplementary services and smaller gatherings to cut costs.
To address these challenges, Palkovics and Novák both urge families to plan ahead, either through insurance or savings, to manage the financial impact of funeral expenses. As the economic situation remains uncertain, with ongoing inflation and other pressures, the cost of funerals is unlikely to decrease in the near future.
Don’t Take It Home!
Gergely Novák also mentioned a concerning trend: more people are choosing to take urns home without holding any ceremony, a practice funeral professionals discourage. To combat this, a campaign titled “Don’t Take It Home!” was launched last year, aiming to raise awareness of the emotional and social implications of such decisions.
Finally, Novák’s company has introduced a pioneering online service, SimpleTemetés.hu, offering a fully online funeral arrangement process. This innovative service is designed to assist those managing funerals from abroad or who prefer to handle arrangements in the comfort of their own home. The platform provides comprehensive information on available services and allows users to customise their plans while ensuring secure payments and 24/7 customer support.
The Hungarian Baptist Charity has launched a donation drive to help 2,500 needy children starting school this year, the organisation said in a statement.
Donations for school-starter children in need
Last year the charity distributed the same number of packages filled with exercise books, pencil boxes, glue, sports equipment and schoolbags, primarily in the country’s poorer northern and north-eastern counties, it said.
Béla Szilágyi, the charity’s head, said the charity provides aid to poor families throughout the year, providing clothes and food products.
Collection points in the city include Nyugati Square (30-31 August), while online donations can be given at www.sulidoboz.hu.
Meanwhile, the Red Cross has also started an online fundraiser for 3,000 schoolchildren and their families across the country, the organisation said on Friday. The action ending on 31 August similarly focuses on collecting and delivering school supplies such as coloured pencils, gym clothes and sports shoes.
Recently, the Court of Justice of the European Union (CJEU) imposed a substantial EUR 200 million fine on Hungary. There is a daily additional EUR 1 million fine for failure to comply with the judgement of the CJEU. However, it is still not clear if the Hungarian government is willing to pay the lump sum and the additional delay costs. In addition, further fines are on the horizon.
Hungary fined by the Court of Justice of the European Union
Economx reports that on 13 June, the Court of Justice of the European Union (CJEU) imposed a substantial EUR 200 million fine on Hungary for failing to amend its border policy concerning migrants and asylum seekers, as required by EU law. This penalty significantly exceeds the European Commission’s initial request of EUR 7 million and includes a daily fine of EUR 1 million until Hungary complies with the judgment.
The Court of Justice of the European Union in Luxembourg. Source: Wikimedia Commons/Luxofluxo
Hungarian officials, including PM Viktor Orbán, have condemned the verdict as “outrageous” and “unjust,” with the government indicating that while compliance is inevitable, negotiations with Brussels are ongoing. However, the government has warned that if a resolution is not reached, Hungary will continue its border protection efforts. Moreover, the situation has raised concerns about how the fines will be managed and their effects on Hungary’s relations with the EU.
A growing fine
Hungary faces a daily penalty of EUR 1 million until it complies with a recent ruling by the Court of Justice of the European Union. As the EUR 200 million lump sum is due, Hungary received a letter and a notice with a 45-day payment deadline issued by the Court of Justice of the European Union in mid-July. If unpaid, the European Commission may deduct the fine from Hungary’s EU funds. Despite the finality of the judgment, no clear decision has been made on when or how the fines will be paid. Similar actions were taken against Poland in 2021, where fines were deducted from its EU funds.
Hungary vs Brussels
For years, Hungary has urged Brussels to contribute more to the EU‘s border protection costs, having spent around HUF 700 billion (EUR 1.8 billion) since 2015, while the European Commission has contributed only HUF 45 billion (EUR 113 million). Zoltán Lomnici, an expert on Hungarian and EU law, noted that Hungary could potentially sue the Commission for compensation for these expenses, a sum far greater than the fines imposed in the recent ruling by the Court of Justice of the European Union. Additionally, Hungary could leverage its veto power on key issues, such as taxation, social security, and foreign policy, to exert pressure on Brussels.
Further fines?
In June, the European Commission identified Hungary among seven EU member states with budget deficits, leading the Council of the European Union to formally initiate procedures against them on 26 July. While this could eventually result in fines, Hungary’s government is aiming to reduce its budget deficit gradually. Gergely Gulyás suggested a potential 2% reduction as a significant step forward. The Ministry of Finance projects a budget deficit of 4.5% this year, and 3.7% next year. The ultimate goal is to bring the deficit below the EU reference value (3% of GDP) by 2026.
Due to the rapid increase in the Romanian minimum wage, Hungarian wages have fallen in the ranking of EU member states and in comparison to other countries in the region.
The minimal wage in Romania has risen by nearly 23% within a year, thanks to the second increase in the last six months, which took effect on July 1. The country’s minimum wage was raised by 12% in February and by 10% at the beginning of the year, as reported by 444.
Due to the rapid increase in the Romanian minimum wage, Hungarian wages have fallen in the ranking of EU member states and in comparison to other countries in the region. In the 2010s, Hungarian wages were on par with the minimum wages in the V4 countries. However, the forint has depreciated significantly since then, and other countries have also begun a notable catch-up process, yielding visible results.
According to data from the second half of the year, the Hungarian gross minimum wage was EUR 675.27, while the Romanian minimum wage was 10% higher at EUR 743.37. The Hungarian minimum wage was only 8% higher than the previous year, due to the weakening of the forint against the euro each year.
While gross pay is essential information, what truly matters for workers is their take-home pay, and the picture is not much better in this regard. Although the Romanian gross minimum wage is already 10% higher than the Hungarian one, the net difference is only 6%.
The difference between the gross and net wages is due to varying tax rates, as gross wages are taxed slightly more heavily in Romania (38%) than in Hungary (33.5%).
Only Bulgaria has a lower minimum wage in the EU ranking
Photo: Pixabay
There has been a significant change in the EU ranking in the second half of the year, with Romania now ahead of Latvia, where minimal wage earners work for EUR 700, following the latest increase. Hungary remains in second-to-last place, just ahead of Bulgaria.
It is worth noting that Bulgaria is also on the path to catching up, with a nearly 20% minimal wage increase this year following a 9% rise last year. At this rate, they will match the current Hungarian minimum wage in two years.
The highest minimum wage remains in Luxembourg at EUR 2,570 per month. In Ireland, minimum wage earners receive EUR 2,146, and in the Netherlands, EUR 2,134.
However, in Hungary, there have been relatively significant increases in recent years. In 2022, the minimum wage increased by nearly 20% to HUF 200,000 (EUR 502) gross, followed by a 16% increase at the beginning of last year and another 15% increase in December. However, these increases only managed to cover the inflation during this period.
The level of minimum wage increases in Hungary has not been sufficient to improve its position in the EU ranking or the region, nor to compete with the country’s eastern neighbours.
Read also:
Hungarian workers earn less than 1/3rd of Austrian counterparts – Read here
The lowest-paid jobs in Hungary: staggering differences in net wages across the country – Read here
As summer reaches its peak, ice cream lovers in Budapest encounter a wide range of prices for their favourite treat. The cost difference between the most expensive and cheapest scoops can be substantial. From artisanal creations in the city centre to budget-friendly options on the outskirts, Budapest’s ice cream scene is diverse, with prices and quality varying greatly.
Index has compiled a list of the price range for a scoop of ice cream in Budapest during the peak summer season. According to their findings, the price difference between the most expensive and cheapest options is HUF 1,800 (EUR 4.56). However, they note that comparing prices can be tricky since some places sell it by the scoop while others sell it by weight.
What is clear is that prices in Budapest vary widely, and they do not always reflect quality. The list includes both central and more remote locations. One ice cream shop owner attributed the price increases to rising commodity prices, especially for cocoa, and said that cocoa prices might rise even more in the future.
One of the most famous ice cream parlours in Budapest, Gelarto Rosa, is located on the corner of Szent István tér, a short walk from the Basilica. Here, the icy treat is sold by weight: a 75-gram two-flavoured serving costs HUF 1,600 (EUR 4), a 100-gram three-flavoured one is HUF 1,900 (EUR 4.8), and a 125-gram four-flavoured one is HUF 2,200 (EUR 5.5). The manager explained that their pistachio ice cream is made from Sicilian pistachios, the hazelnuts are from Italy, the vanilla from Madagascar, and the mango from India.
Punto Gelato, with four outlets in Budapest, follows Rosa in price, with a scoop costing HUF 850 (EUR 2.15). Ducksy, located on Zrínyi Street, sells a scoop for HUF 690 (EUR 1.77). The prices at these shops reflect their proximity to the city centre and the Basilica, popular stops for tourists in Hungary.
Ruszwurm, a traditional Hungarian confectionery located in Buda Castle, offers a scoop for HUF 700 (EUR 1.8), with the bonus of a beautiful panorama. At the Szamos Café and Chocolate Museum near Parliament on Kossuth Lajos Square, it costs HUF 650 (EUR 1.65).
Further from the city centre, ice cream prices range from EUR 1 to 1.5. Daubner Confectionery on Szépvölgyi Street is well-known and loved, offering good quality ice cream for HUF 400 (EUR 1), relatively unaffected by inflation. Erdős és fiai Confectionery near Etele Square sells a scoop for 500 forints, using natural ingredients.
Fazekas Cukrászda Cake and Dessert Shop, located at the end of Csömöri Road just outside the city, is notable despite its distance. Ice cream maker Ádám Fazekas won the 2019 European championship and the 2021 world championship with their salted pistachio with tonka bean raspberry ice cream. This year, as we previously reported, he was named the world’s best. Here, ice cream costs around HUF 500 (EUR 1.27) per scoop.
.This list shows that the beloved frozen dessert tends to be more expensive in the city centre and tourist areas, but quality ice cream made with natural ingredients can often be found at lower prices outside the city centre.
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Burger for EUR 9, lángos for EUR 5: the Hungarian reality this summer – Read here
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The Hungarian Competition Authority (GVH) has initiated a competition supervision procedure against one of Hungary’s most popular low-cost airlines, Wizz Air, for alleged unfair commercial practices. The GVH suspects that Wizz Air’s booking system violates the requirement of professional diligence and that essential information related to service fees is being withheld from consumers. Now, another investigation has been launched against the low-cost carrier.
Wizz Air fined HUF millions
József Váradi, CEO of Wizz Air. Photo: Wizz Air
As Daily News Hungary reported before, the GVH claims that Wizz Air failed to inform customers that certain “additional services” included in some of their packages could be purchased separately. Moreover, the airline is accused of engaging in misleading commercial communication regarding the key features of its automatic check-in service.
On Saturday, August 3rd, the GVH concluded its latest investigation into Wizz Air, resulting in the company being fined over HUF 307 million (EUR 772 thousand) for the aforementioned violations.
New investigation launched
Additionally, another investigation is currently underway, as Wizz Air is suspected of withholding important information from passengers, Világgazdaság reports.
The newly launched investigation focuses on two main allegations:
Wizz Air’s booking system likely fails to meet professional diligence standards, as it does not ensure predictability and reliability in the communication of service fees. There are instances where the prices for the same services vary depending on the device used (e.g., two different mobiles or a mobile and a desktop computer).
The airline is also suspected of concealing from consumers that the prices displayed on its website and app may not be valid throughout the entire booking process.
The initiation of the competition supervision procedure does not imply that the company has committed the alleged violations. The investigation aims to clarify the facts and prove the suspected infringement.
The standard duration for conducting such an investigation is three months, which can be extended twice, each time by up to two months if necessary. The GVHemphasises that, according to competition law, the period between requesting necessary data from the client and receiving the response does not count towards the investigation’s timeframe.
Competition authority continues to monitor the aviation market
In recent years, the GVH has closely monitored the domestic aviation market. In October 2022, the national competition authority conducted a comprehensive sweep analysis to examine whether the websites of airlines operating in Hungary, including low-cost carriers, and popular ticket comparison sites were using so-called dark patterns in their sales and advertising practices, Világgazdaság explains.
There has been a growing number of complaints and reports to the GVH regarding airline practices. In response to these increasing consumer alerts and market anomalies related to the operation of the aviation market, Csaba Balázs Rigó, the President of the GVH, has issued notices to the leaders of several airlines operating in the Hungarian market.
Fair competition and consumer protection
This ongoing vigilance by the GVH reflects its commitment to ensuring fair competition and protecting consumers from deceptive practices in the aviation sector. For tourists and locals alike, being aware of these developments can help in making informed decisions when choosing to fly with low-cost carriers like Wizz Air.
In Hungary, the expected number of healthy years after the retirement age of 65 is alarmingly low, with both men and women averaging just five more healthy years. This statistic places Hungary at the bottom of the European Union rankings. Experts argue that if life expectancy decreases, the retirement age should be adjusted accordingly to reflect these demographic realities.
The EU is considering a policy that would link the retirement age to changes in life expectancy across member states, including Hungary, Dívány reports, based on Nyugdíjguru. This approach aims to address the challenge of setting retirement policies when life expectancy is shorter than anticipated.
Hungarian pensioners’ life expectancy lower than in the EU
Currently, the average life expectancy for a 65-year-old man in the EU is 17.3 years, while for women it is 20.9 years. However, in Hungary, these numbers are significantly lower: Hungarian men can expect an additional 13.2 years, and women 17.3 years. As a result, Hungarian men typically spend around 13-14 years in retirement, while women spend about 20-21 years. Notably, Hungarian women often retire earlier, around ages 61-62, due to early retirement policies, while men must wait until 65.
Only 73% of Hungarian men and 87% of women reach the age of 65. Furthermore, the number of healthy years they experience post-retirement is just 4.9 years, one of the lowest figures in the EU. This situation forces many elderly Hungarians to endure health issues and reduced quality of life during their retirement years.
Several EU countries have already raised or plan to raise the retirement age in response to demographic trends. For instance, Spain aims to increase it to 67 by 2027, Belgium by 2030, Germany by 2031, Denmark to 69 by 2035, and Italy to 69 years and 9 months by 2050. Sweden operates a flexible retirement system allowing citizens to retire between the ages of 63 and 69, with earlier retirement leading to lower pension benefits.
In Hungary, the retirement age increased from 62 to 65 years between 2010 and 2020, surpassing the retirement age in 11 other EU member states. Despite this rapid increase, the corresponding rise in life expectancy has not kept pace, suggesting that further raising the retirement age may not be necessary at this time. However, the EU’s proposed policy would allow for adjustments if life expectancy were to change, ensuring that retirement policies remain fair and sustainable.
The EU recommends that Hungary adopt a flexible approach similar to other member states, where the retirement age is adjusted based on life expectancy at age 65. This policy would allow for a reduction in the retirement age if life expectancy declines, ensuring that the retirement system is responsive to demographic and health trends.
