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Wizz Air receives serious fine in Hungary for unfair commercial practice

This is not the Hungarian low-cost airline’s best week. We wrote earlier that their shares began to drop on the London stock market after its management cut back its profit expectations. Now, the Hungarian Hungarian Competition Authority (GVH) fined Wizz Air for conducting unfair commercial practices while trying to sell their passengers expensive services.

Serious fine for Wizz Air – GVH could not be convinced

According to portfolio.hu, GVH fined Wizz Air because they provided misleading information to their passengers concerning automatic check-in. Furthermore, they hid that some extra services—like Wizz Priority or checked-in baggage—could be bought separately. That means the company intentionally directed its passengers to more expensive packages.

The GVH began the relevant process against the airline in 2023 and monitored the interval between November 2018 and May 2024. The GVH fine reaches HUF 307.8 million (EUR 771 thousand).

Wizz Air 20th anniversary livery new
Wizz Air 20th anniversary jet. Bad news coming? Source: Wizz Air

During the process, Wizz committed to carrying out IT developments and passenger compensation. However, the GVH did not accept that and imposed the fine.

The reaction of Wizz Air

Csaba Balázs Rigó, President of the GVH, said that transparent and available communication is crucial in air traffic, especially when delays and cancellations happen frequently. He also highlighted the importance of protecting passengers.

Index.hu shared the reaction of the Hungarian airline. Wizz wrote about an unfounded GVH resolution which doesn’t serve the passengers’ interests. They highlighted that they cooperated with the GVH during the process. Wizz claimed their booking process was transparent and understandable, serving passengers’ interests.

The Hungarian airline carried out modifications even during the process, so they questioned the rightfulness of the fine, refused to agree with its explanation and promised to take legal action. They said they would have compensated the passengers affected, but GVH did not accept that.

Wizz Air engine
Photo: FB/Wizz Air

Wizz Air also said they prepared for the summer season with developments for EUR 100 million, suggesting they were not responsible for the many delays and cancellations disturbing the holidays. In their statement, they blamed the Hungarian and the European air traffic control companies for the problems.

Read also:

  • Wizz Air may beat Ryanair in Budapest this winter – Read more HERE
  • Wizz launches new direct flight from Budapest to Mediterranean paradise

Approximately 100 individuals with extreme wealth live in Hungary

Wealth old man Hungarian businessman

Approximately 100 people in Hungary have financial wealth exceeding USD 100 million, making them among the ultra-high-net-worth individuals globally, according to a recent report by the Boston Consulting Group (BCG). Experts predict that this number will double in the next five years.

According to the BCG’s Global Wealth Report 2024, around 100 Hungarians currently have financial wealth over $100 million, classifying them as ultra-high net worth individuals, Portfolio reports. This places Hungary on a notable trajectory of wealth accumulation.

Additionally, another 700 Hungarians had between USD 20 million and USD 100 million in financial assets last year, showcasing a substantial segment of the population with considerable financial resources. The report also states that about 71,600 Hungarian citizens possess financial assets between USD 250,000 and USD 1 million, while another 22,000 citizens have between USD 1 million and USD 20 million.

Krisztián Horváth, associate director of BCG, noted that the Hungarian population is expected to see double-digit growth in financial wealth over the next five years. This projected growth rate surpasses the global average by four percentage points and is two percentage points higher than the growth observed in Eastern Europe. Such robust growth forecasts suggest a thriving economic environment. Consequently, Hungarian financial wealth is projected to reach an impressive USD 500 billion by 2028.

Of these assets, approximately two-thirds are classified as investable assets, which include shares, mutual funds, bonds, bank deposits, and cash. The remaining one-third consists of long-term pension savings, life insurance, and shares in unlisted companies. This distribution reflects global trends in asset allocation, where liquid and investable assets form the majority, providing individuals with flexibility and potential for growth.

BCG estimates that the proportion of cash and bank deposits in financial assets will drop below 20%, while the share of assets held in bonds, mutual funds, and equities will rise to 70%. This represents a 25-30 percentage point increase compared to global and Eastern European ratios, highlighting the advancement and maturity of the Hungarian wealth management and savings market.

Surge in super-wealthy individuals despite decline in long-term savings

money finance rich bank
Pixabay.com

 

However, this positive outlook is tempered by the steady decline in the share of long-term life insurance and pension savings, which have more than halved over the last 20 years. This decline suggests a shift in financial priorities and a potential gap in long-term financial planning among Hungarians, the portal says.

The anticipated surge in financial wealth over the next five years means that Hungary will have significantly more super-rich individuals. BCG expects that by 2028, the number of ultra-rich Hungarians will increase to 200, effectively doubling the current count.

Furthermore, the number of Hungarians with financial wealth between USD 20 million and USD 100 million is projected to rise from 700 to 1,300. This growth in the ultra-rich population underscores the dynamic economic landscape of Hungary and reflects broader trends of wealth accumulation and economic prosperity in the region.

Read also:

  • Orbán’s circle holds nearly EUR 4 billion in private equity funds – Read here
  • Hungarian workers earn less than 1/3rd of Austrian counterparts – Read here

Gyurcsány’s DK files request about EUR 1 billion loan Orbán’s cabinet took out from China

Viktor Orbán China

The Democratic Coalition will file a request to the State Debt Management Centre for information concerning the terms of a one-billion-euro loan the government has recently taken out from China, László Varjú, the opposition party’s deputy leader, told an online press conference on Wednesday.

The government “seeks to conceal” what they want to use the huge amount of money for, and suggested that Hungary’s taxpayers would be repaying the loan for decades.

“We don’t know what interest we’ll have to pay on the Chinese loan,” he said, adding that the term of the loan was also unclear. “We do not know either which Fidesz-billionaire’s company the money will benefit,” Varjú added.

Through providing the loan, China will make Hungary “dependent, not only in an economic but in a political sense”, Varjú said. Prime Minister Viktor Orbán “has put on the Chinese leash in return for further billions they could loot,” he said.

Taking a loan from China is “a shining proof” that “the government’s austerity measures have yielded even less in state revenues … and because of the empty coffers it will take out further and further loans and introduce more and more austerity,” Varjú said.

Read also:

  • Hungarian government plans new foreign bond issuance following gigantic Chinese loan – Read more HERE

New payment solution qvik revolutionses payments in Hungary starting September

bank card visa mastercard

Qvik is set to launch in Hungary this September, introducing advanced instant payment solutions to the market. These solutions include the unified Qvik QR code, Qvik deeplink, and Qvik NFC technologies. The service, developed with guidance from the Hungarian National Bank and Giro, aims to provide an efficient payment method that simplifies transactions for both consumers and retailers.

With the rollout of Qvik, consumers will be able to make payments via bank transfer in retail stores with the same ease as using a credit card, RTL reports. This innovative system, based on real-time payment requests and instant transfers, promises to offer a simple and economical alternative to traditional card payments. By eliminating the merchant’s commission fees associated with card transactions, Qvik provides a cost-effective solution for retailers and a free payment experience for buyers, akin to using a credit card.

The new system is designed to allow retailers to send payment requests to customers at the point of sale. Customers can then easily fulfil these requests without the need for a physical card. This system not only streamlines the payment process but also helps retailers avoid the high fees often associated with card transactions.

According to Bank360.hu, the new service is expected to make a strong entry into the market due to its fast and seamless payment capabilities. Early adoption by financial service providers could prove advantageous, as securing a significant share of this emerging market will be crucial. If major players in the industry get involved early, they could dominate the market, leaving smaller competitors with fewer opportunities.

Qvik is a win-win solution for both customers and retailers

qr code, qvik
Photo: depositphotos.com

The service aims to revolutionise payment processes by providing faster and more affordable transactions compared to traditional card payments. In physical retail environments, a QR code will be displayed on the checkout screen, which customers can scan with their mobile phones to complete their purchases. This same functionality will be available for online shopping, making it a versatile solution for various types of transactions.

For businesses that are open to embracing new technologies and looking to reduce the costs associated with card acceptance, the new service presents a valuable opportunity. From the consumer perspective, Qvik offers a secure, convenient, and legally free alternative to card payments, enhancing the overall payment experience without the need for additional apps.

Retailers and operators will benefit from seamless integration with Qvik, as there will be no need for additional enhancements to their existing systems. Customers will be able to use Qvik features through SimplePay’s solutions. Additionally, OTP’s phone POS service will enable mobile devices to function as POS terminals, supporting touch-transfer payments. Businesses using SimplePay will also be able to offer QR code and deeplink payment options, further enhancing their payment flexibility and customer satisfaction.

Read also:

  • Great news: BKK plans to expand Pay&GO to the rest of Budapest – Read here
  • Hungarian workers earn less than 1/3rd of Austrian counterparts – Read here

Featured image: depositphotos.com

Shocking: Russians owe billions to Hungary, but the Orbán cabinet remains silent

Budapest International Book Festival Putin Orbán russia

Budapest hosted the Russian International Investment Bank for years, but due to American and EU outrage, Hungary left the bank. Later, the Russians decided to leave Hungary because of the sanctions. However, they did not repay Hungary billions of forints, and they owe even a Budapest palace, which is still in the ownership of the bank.

Hungary should lobby against US, EU anti-Russia sanctions, IIB said

According to Népszava, the Russian International Investment Bank owes Hungary USD 74 million and an astonishing Budapest palace located in the prestigious area of the Chain Bridge. However, the Hungarian government seems to do nothing to reclaim the money and assets.

Based on the paper, Czechia took all legal steps to reclaim its money stuck in the Russian IIB after the bank left Eastern Europe. At least, that is what their finance ministry told the paper. The Hungarian government does not follow that example.

The bank called on all former European member states to press the Americans and Brussels to abolish the anti-Russia sanctions. As a result, they would be able to pay back their debts. For example, if the Orbán cabinet wants to retrieve its billions, they should convince the Biden administration to abolish the anti-Moscow sanctions. That is, of course, impossible even though the Orbán cabinet regularly slams the sanctions and keeps fingers crossed for Trump.

Orbán says President Trump will end the war in Ukraine
Trump and Orbán in Florida this July. Will Trump win back the Hungarian billions and the palace from the Russians? Photo: FB/Orbán

Minister mentions procedures

Gergely Gulyás, the head of the Prime Minister’s Office, talked about a bankruptcy procedure or a compulsory liquidation against the bank. But there is no trace of such legal processes in the official databanks. Népszava wrote that the minister said in a November press conference that there was a procedure against the bank, but that was not a bankruptcy procedure or a compulsory liquidation. He added that the Hungarian state would assert all its claims against the debtor.

This May, he mentioned a compulsory liquidation procedure, but he was not sure about that. He said the Chain Bridge Palace, the former HQ of the bank, was in the ownership of the financial institution. Based on estimates, it was at least HUF 9 billion (EUR 22.75 million). Mr Gulyás highlighted that they would like to reclaim the ownership of the building.

Népszava argues there was no trace of any legal procedures against the bank.

IIB, the Trojan horse of the Russians?

The Russian International Investment Bank started operation before the Russian invasion of Ukraine and inaugurated its new seat in the heart of Europe in February 2021. After the invasion, European states left it one after the other. The last one to do so was Hungary in April 2022, with 25.26% of the shares. That came after the United States introduced sanctions against the Hungarian head of the Russian bank, former VP Imre Laszlóczki.

The American government, their representative in Budapest, Ambassador David Pressman, and some of their Western allies always considered the IIB as President Vladimir Putin’s Trojan horse in Europe. The bank left Hungary after the American and EU sanctions, saying their operation in the continent became impossible.

PM Viktor Orbán met with President Putin at the beginning of July in Moscow as part of his so-called peace mission. Neither mentioned the IIB and its debt to Hungary in the following and jointly held press conference.

Putin Orbán guest workers Russians
Putin and Orbán in July in Moscow. Photo: FB/Orbán

Read also:

  • Hungary’s new visa system: Schengen access for Russian spies raises alarms
  • EU diplomats fuming: Hungary appeals to Brussels for Russian oil assistance – details HERE

Viktor Orbán announces doubling of tax benefits for families with children!

family tax benefits Hungary's population families

In a recent Facebook post, Hungarian Prime Minister Viktor Orbán announced that the tax benefits for families with children will be doubled in 2025. The announcement was part of Orbán’s speech at the Tusványos Summer Free University and Student Camp, where he emphasised the need for a strong and flexible Hungarian society. According to Orbán, reversing the country’s demographic decline, which has stagnated despite initial success, requires renewed efforts.

As part of a “peace budget,” the government plans to double the child tax benefits and extend these benefits to Hungarians living abroad, Portfolio reports. Orbán also stressed the importance of preserving the rural village system and maintaining a work-based society, avoiding the creation of megacities.

Who is eligible for family tax benefits?

family tax benefits
Hungarian Prime Minister Viktor Orbán announced that the tax benefits for families with children will be doubled in 2025. Photo: depositphotos.com
  1. Individuals entitled to family allowances.
  2. Parents who share custody of their child based on a court decision, agreement, or joint declaration.
  3. Spouses living in the same household as the family allowance recipient but not entitled to the allowance themselves.
  4. Pregnant women and their spouses living in the same household.
  5. Children entitled to family allowances on their own behalf and individuals receiving disability benefits.
  6. Individuals eligible for family allowances, disability benefits, or similar benefits under the laws of any foreign country, provided they meet other statutory conditions.

Duration of family tax benefits

The family tax benefit can be claimed from the 91st day of pregnancy, requiring a medical certificate. It continues until the child reaches 16 years of age, or longer if the child is enrolled in a full-time educational institution (such as high school or vocational school). The benefit ends when the child graduates from high school. However, if there are younger siblings who are eligible, the older child can still be considered for the benefit, albeit at a reduced rate.

Applicable incomes for family tax benefits

Family tax benefits can be claimed on income that forms part of the consolidated tax base, including:

  • Income from independent activities, such as private businesses, agricultural production, or rental income.
  • Income from dependent activities, such as wages and taxable social security benefits, including child care fees.

This comprehensive increase in family tax benefits is aimed at supporting Hungarian families and encouraging population growth.

Read also:

Featured image: depositphotos.com

Hungarian government plans new foreign bond issuance following gigantic Chinese loan

forint bank card coin money bond finance interest rate freeze Hungarian government orbán

The Hungarian government recently secured a EUR 1 billion loan from China under more favourable terms than the market, according to Finance Minister Mihály Varga, who did not disclose details about the interest rates. Varga hinted that Hungary might issue a Samurai bond in Japan this fall.

Issuance of new foreign bond on the horizon

forint bank card coin money bond finance interest rate freeze Hungarian government orbán
Source: Facebook/Varga Mihály

The government’s goal is to involve more Hungarian institutional investors, such as banks and insurance companies, in purchasing Hungarian government securities. This approach aims to reduce the reliance on foreign and retail investors, which could also impact the conditions of retail government bonds. Varga told ATV that while the loan’s terms are favourable compared to market conditions and will mainly fund infrastructure development, further details on interest rates and usage were not provided.

Varga explained, “Disclosing additional information could harm business interests in bilateral agreements.”

New partners

He noted that Hungary’s debt management strategy has long relied on multiple sources to diversify its capital requirements. In recent years, in addition to traditional Anglo-Saxon and European markets, Qatar, Japan, and China have become significant partners.

A Samurai bond issuance in Japan is planned for this fall.

The minister highlighted the traditionally good relationship with China, citing previous issuances of Panda bonds, including Green Panda Bonds aimed at supporting green transitions. The current loan, negotiated at a favourable rate, will primarily support transportation and energy infrastructure projects.

Foreign currency debt at “appropriate level”

In a previous interview with Inforádió, Economic Minister Márton Nagy mentioned that Hungary’s foreign currency debt is at an appropriate level. However, he stressed the importance of prioritising debt issuance in Hungarian forints and extending its maturity. The regulation of investment funds and insurers, encouraging them to purchase government bonds, was also discussed.

Nagy pointed out that this year’s primary balance of the state budget shows a balance, with the deficit only arising from state interest expenses. The primary balance is neutral, and the deficit corresponds to the size of the interest expenses, amounting to 4.3-4.5%. Next year, these interest expenses are expected to decrease significantly to 3.4-3.5% of GDP.

Read also:

The European Commission may suspend more EU funds to Hungary

european union european parliament Brussels russia sanction

The European Commission’s annual report on the rule of law in Hungary contains “several inaccuracies and untruths” concerning the public prosecution, the prosecutor’s office said in a statement on Thursday, and it categorically rejected the assertion of political interference, MTI wrote.

“The European Commission (EC) hasn’t excluded the possibility of applying the conditions for the allocation of cohesion funding to Hungary on account of the Sovereignty Protection Act as well, Didier Reynders, European Commissioner for Justice told Népszava“, telex.hu wrote in their English language article covering the issue.

The public prosecution, the statement insisted, acted “professionally and impartially”, and any suspicion of political interference reported to the office would be investigated “thoroughly”, MTI said.

Regarding opposition politician Péter Magyar’s assertion that the office had been swayed politically and investigative documents doctored, the statement said that the office had decided to terminate its “wide-ranging and detailed investigation”.

It added that it would be unconstitutional and incompatible with the independence of the public prosecutor’s office for it to bring charges, and it had acted legally and correctly in all disputed cases.

Also, the statement called EC objections regarding the hierarchical structure of the prosecutor’s office “inaccurate and misleading”, and it cited conclusions made by the Consultative Council of European Prosecutors and the Venice Commission as confirming the view that its structure reflected rule-of-law requirements and enabled prosecutors to be free from politics.

High-level corruption in Hungary?

The prosecution service “is independent of executive power”, it said, adding that the government and the minister of justice were not in a position to instruct the chief prosecutor, and in turn, prosecutors down the line could ignore any instruction from higher up until it was written down at their request if the prosecutor in question considered the command incompatible with the law.

Regarding the alleged dearth of results against high-level corruption, the statement said the EC report had cited the findings of previous annual rule-of-law reports rather than fresh data.

The report’s assertion of a high level of corruption in the public sector was also unfounded, the statement said.

In last year’s Eurobarometer survey, 22 percent of Hungarian respondents said corruption affected them in their everyday life, putting Hungary mid-field among EU member states, the statement said.

Read also:

Drastic price rise in popular Budapest bath

Drastic price rise in popular Budapest bath

Visitors should prepare for a drastic price rise in one of the most popular Budapest baths on 1 August.

Drastic prise rise at Dagály from August

According to 24.hu, the state-owned bath will increase ticket prices by an average of 15% from the beginning of August. If you are a regular bath-goer, you should buy your pass in July.

Drastic price rise in popular Budapest bath
Photo: FB/Tóth József, mayor of the 13th district of Budapest

That comes after the bath raised its prices this May. From 1 August, you will have to pay the following ticket and pass prices:

  • Adults on weekdays: HUF 4,350 (EUR 11), instead of HUF 3,800 (EUR 9.66), which is + 14.5%.
  • Adults on weekends: HUF 4,700 (EUR 12), instead of HUF 4,100 (EUR 10.4), a + 14.6% rise.
  • Kids, students, and pensioners on weekdays: HUF 2,850 (EUR 7.2), instead of HUF 2,500 (EUR 6.3), which is + 14%.
  • Kids, students, and pensioners on weekends: HUF 3,650 (EUR 9.3), instead of HUF 3,200 (EUR 8.1), which is + 14%.
  • Family ticket (2 adults and 2 minors): HUF 9,200 (EUR 23.38), instead of HUF 8,000 (EUR 20), which is + 15%.
  • Pass for 15 entrances: HUF 52,400 (EUR 133), instead of HUF 45,600 (EUR 115), a + 15% increase.
  • Pass for 180 entrances: HUF 299,000 (EUR 760), instead of HUF 260,000 (EUR 660), another + 15%.
Drastic price rise Budapest bath Dagály
https://www.facebook.com/pg/dagalyfurdo

Based on Spabook, a news outlet focused on such news, the price rise may be unexpected since leading government officials regularly and proudly mention the decreasing inflation. Meanwhile, they raised prices by much more than the annual average inflation, which is expected to be around 6% in 2024 in Hungary. Such price rises generate more inflation, 24.hu wrote.

Here are the Dagály bath’s new prices:

Hungary’s top ten bath companies increased income by 23.6%

According to a compilation of Termalonline summed up by economx.hu, in 2023, the ten biggest Hungarian bath companies increased their income from EUR 129 million to EUR 160.6 million, a 23.6% rise. According to the Hungarian National Bank, the 2023 average annual inflation was “only” 17.6%, so the Hungarian bath companies increased their revenues much above the rate of inflation.

The Budapest Spas cPlc. made a solid HUF 22.9 billion (EUR 58.2 million) revenue, a 40% rise compared to the previous year. Their profit after taxation rose even more, from EUR 6.1 million to EUR 13.72 million, so operating a Budapest spa or bath seems profitable.

But Dagály is not operated by the Budapest Spas cPlc. The National Sports Agency of Hungary, a state-owned company, runs it, which is not in the compilation.

Read also:

BREAKING – Hungary took out a gigantic Chinese loan in secret – avoiding bankruptcy?

Hungary took up a gigantic Chinese loan in secret

The Hungarian government did not communicate that they took up a gigantic EUR 1 billion Chinese loan from Chinese banks to spend on fuzzy infrastructure projects. Taking maturing bonds out of the equation, this is the Hungarian state’s highest loan. We do not know the loan interest, and the Hungarian institutions remained silent about its purpose either.

Secret Chinese loan before the 9 June elections

The incredible new loan uptake was spotted by portfolio.hu in the data of the Government Debt Management Agency (ÁKK). The creditors are Chinese banks like the Chinese Development Bank, the Chinese Eximbank and the Bank of China Hungarian Branch. The repayment deadline is 19 April 2027, while the government took it up on 19 April.

Based on the explanation, the Hungarian government would like to spend the money on high-tech developments, infrastructure, transport and energy projects. The interest rate is not fixed, but the numbers remain in secret.

orbán xi beijing chinese loan
PM Viktor Orbán and Chinese President Xi Jinping in Beijing on 8 July 2024. Did they talk about the loan? Photo: MTI/Miniszterelnöki Sajtóiroda/Benko Vivien Cher

The Hungarian government “forgot” to mention the loan in its official communication before the 9 June European parliamentary and municipal elections. The ÁKK told portfolio.hu that the rate of the Hungarian state debt in foreign currency would remain under 28.9%, below the 30% threshold, which is better than the 50% in 2010. That refers to the pre-Orbán Socialist government.

The biggest loan in Hungary

One billion euros is the biggest Hungarian loan currently, not considering bond issues. It can be compared with the Chinese loan Budapest took up for the Belgrade-Budapest railway development, which was USD 917 million then.

Portfolio could not discover whether the Chinese loan was advantageous or not because all financial institutions keep the interest rate secret. Based on the interest rate of the January bond issue (4%), it has to be lower to be good for the country.

euro money chinese loan
Pixabay

Interestingly, the Hungarian government regularly reported about its loan uptakes, and the process was easy to follow for journalists before. This Chinese loan, however, was an exception. Or will it be an example?

Where is the money?

Nobody knows whether the government already spent that money, even though there are multiple ideas of where they could put it. First, the Hungarian state budget struggles with significant deficits, so the Orbán cabinet raised taxes in July.

Furthermore, the Hungarian government bought 80% of the Budapest Airport shares in June for EUR 2.5 billion, so the Chinese money could cover part of that transaction. Or the government could fill some holes in the state budget with it. Moreover, the Orbán cabinet must pay EUR 200 million to the European Union as a fine following a Court of Justice of the European Union decision.

Viktor Orbán European Union Brussels migration mixed society chinese loan
Friends in the EU. Did they know about the loan uptake? Photo: facebook.com/orbanviktor

Márton Nagy, Hungary’s national economy minister, talked about the increasing rate of Chinese financing in Hungary. For example, he said the Bank of China might cover infrastructure development projects, helping the trade of Chinese companies.

He added that since Western and Eastern FDI are present in Hungary, Chinese banks will show up in monetary financing.

Of course, that does not mean they must finance the Hungarian state with loans.

Read also:

Shocking breakfast bill in Tihany confectionery sparks outrage

Tihany confectionery

For several days, a receipt from a guest at the popular Apátsági Rege Confectionery in Tihany has been circulating online. The receipt reveals a transaction involving a startling amount of money, sparking debate: is it really surprising that a breakfast costs so much in a prime tourist spot?

The restaurant is situated in one of the most picturesque areas around Lake Balaton, in a favoured part of Tihany, with a magnificent lake view. Naturally, the prices are very high, but the total bill has still outraged many, according to Szeretlek Magyarország.

Tihany confectionery
Photo: FB / Apátsági Rege Cukrászda

The receipt shows that the guest did not dine alone; they ordered stuffed French toast, vegan toast, coffee, lemonade, and water, with a total cost of HUF 48,218 (EUR 123), including a mandatory service fee of over HUF 6,000 (EUR 15.3).

Check out a photo of the receipt HERE

The image of the receipt, which has appeared on several sites, has divided people online. While no one disputes that the amount paid is a lot for a breakfast, many argue that guests could have checked prices in advance or seen them upon arrival. Others contend that a service charge is too high, even for such a level of consumption. However, the confectionery’s ratings are around 4.5/5 and 9.4/10, indicating that the high prices do not deter most customers.

Were the prices at the Tihany confectionery reasonable?

Világgazdaság investigated the cost of the food and drinks at the confectionery, as it has been the subject of public disapproval recently. “For this price, no one on the shores of Lake Wörth would say a word,” said László Kovács, president of the Hungarian Catering Industry Association, in response to a question from the portal. He expressed confusion over the outcry, stating that no one was deceived. Although prices are not required to be displayed online, they should be indicated at the entrance and on the menu, which was done. People who entered the confectionery and ordered were aware of the prices.

Tihany confectionery
Photo: FB / Tihanyi Bencés Apátság

Another important factor is that the Tihany confectionery is in a high-value zone with special prices due to its beautiful panorama of Lake Balaton and the special World Heritage environment. Whether the business is operated by an owner or tenant, the purchase or rental price of the property is significantly higher than average, which affects everything. Summer is the high season at Lake Balaton, generating the majority of the businesses’ income during this period, which cannot be ignored.

According to the expert, the prices at Apátsági Rege Confectionery are not low but are justifiable for understandable reasons. Besides the Benedictine Abbey of Tihany, it is probably obvious without any indication that a restaurant with special prices operates in the most expensive settlement on Lake Balaton, in the best location.

A catering company manager running high-end restaurants told Világgazdaság that he considers the Tihany confectionery’s story to be hysteria, another opportunity to scrutinise Balaton prices. He added that there are many places in Budapest with similar or even higher prices on their menus, yet they remain full or even have long queues, thanks to the large number of foreign tourists. These include Gerbeaud Confectionery and the New York Café, among others.

Read also:

  • Prices at the Hungaroring: Outrageously expensive or the cheapest in Europe? – Read here
  • Burger for EUR 9, lángos for EUR 5: the Hungarian reality this summer – Read also

Hungarian forint plummets, 400 EUR/HUF dangerously close

forint euro exchange rate money huf eur eurozone

The Hungarian forint has faced multiple setbacks recently, resulting in a significant downturn. The currency’s future remains uncertain, with its decline showing no clear end.

forint euro exchange rate money huf eur eurozone
Photo: depositphotos.com

On Wednesday, the forint’s value dropped sharply. It began the day trading around 390 to the euro and 359.5 to the dollar, but these levels quickly became outdated, Világgazdaság reports. By the end of the trading day, the forint had depreciated by 0.84%, reaching 393.45 against the euro, and by 0.72%, falling to 362.12 against the dollar.

Reasons behind the weakening of the forint

Several factors have contributed to this steep decline:

  • The Hungarian National Bank (MNB) recently announced an interest rate cut.
  • Following this, MNB Deputy Governor Barnabás Virág indicated that one or possibly two more rate cuts could occur this year.
  • Additionally, new data from the Purchasing Managers Index (PMI) suggests continued economic contraction in Europe’s largest economy.

The weak German PMI figures indicate low inflationary pressures, which typically lead to expectations of further interest rate cuts. This, combined with the MNB’s potential future rate reductions, suggests that the forint might lose further support both domestically and across Europe, forecasting a continued weakening trend.

Investors, likely alarmed by the narrowing interest rate differential in Hungary and ongoing political issues, seem to be withdrawing from the Hungarian market. The full extent of the forint’s potential decline is difficult to predict, but some analysts have suggested that an exchange rate of 425 to the euro could be possible by summer.

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Official figures: Hungarian wages keep growing – do you earn this much?

forint money currency Hungarian wages minimum wage

The average gross wage of full-time employees was 652,00 forints (EUR 1,670) in May, up by 14.8 percent year on year, the Central Statistical Office (KSH) said on Wednesday.

Real wages rose

forint money currency Hungarian wages
Source: depositphotos.com

The average net wage was 448,700 forints in May, up by an annual 14.6 percent, KSH said.

Real wages rose by 10.4 percent.

The gross median wage increased by an annual 16.9 percent to 525,000 forints.

Regular gross wages (discounting bonuses and other one-time benefits) came to 607,800 forints on average in May. Gross regular wages in business averaged at 609,100 forints, and were at 592,900 in the public sector, up by 14.1 and 17.5 percent, respectively. The non-profit sector saw a 19.3 percent increase to 636,200 forints.

Net regular wages were at 433,600 forints, up by an annual 14.8 percent.

Real wages grew by 10.4 percent against a 4.0 percent growth of retail prices.

For the period January-May, gross wages averaged 633,000 forints and net wages came to 421,000 forints, up 14.2 percent from the same period a year earlier.

Inflation kept down

Commenting on the data, the state secretary for employment policy said that government measures had succeeded in keeping inflation down, resulting in a 9-month stretch of growth in real wages. That was partly thanks to an “unprecedented agreement” between employers and employees which led to a raise in minimum wages in December already, Sándor Czomba said in a statement.

The dynamic growth of real wages is easing caution in the public and helping consumption, he said. Retail has been growing for five months, and tourism was up by nearly 8 percent in the first half of the year, compared with the record year of 2023, he added.

Read also:

Featured image: depositphotos.com

Orbán’s circle holds nearly EUR 4 billion in private equity funds

forint bank card coin money bond finance interest rate freeze Hungarian government orbán

Private equity funds linked to key figures in Hungarian Prime Minister Viktor Orbán’s circle have amassed nearly HUF 1.5 trillion (approximately EUR 4 billion) in assets, Válasz Online revealed. This staggering amount, highlighted by the financial reports from 2023, underscores the substantial wealth concentrated among individuals such as Lőrinc Mészáros, László Szíjj, István Tiborcz, and Ádám Matolcsy.

Orbán’s circles hold immense wealth

Válasz Online investigated the private equity funds belonging to Lőrinch Mészáros, László Szíjj, István Tiborcz, and Ádám Matolcsy, and revealed that the Orbán-affiliated circles have HUF 1 452 billion in assets. Thanks to the government’s legal regulation, little is known about these funds, including the source of their staggering wealth.

Breakdown of key figures and their funds

  1. Lőrinc Mészáros:
    • Opus Global Investment Fund Management Plc.: This entity manages eight private equity funds, including Konzum PE, Global Alfa, Metis, Metis 2, Status Energy, Opus Bridge, Danube, and Opus New Way, along with the Takarék Closed-End Investment Fund and OPUS TM-1 Real Estate Investment Fund. The total net asset value of these funds in 2023 was HUF 600 billion (EUR 1.5 billion).
    • MBH Investment Fund Management Plc.: This manages the MBH Private Equity Fund and MBH Agricultural Investment and Development Private Equity Fund, with a combined net asset value of HUF 119 billion (EUR 305 million).
    • Status Capital Venture Capital Fund Management Plc.: Overseeing seven private equity funds, including Status MPE, Status Talent, Béta, Ekho, Status Next Environmental, Status Food, and Status Property, the net asset value totals HUF 51 billion (EUR 131 million).
  2. István Tiborcz:
    • Gránit Fund Management Plc.: Managing five private equity funds (Főnix, Gordiusz, Diorit, Egmont, Nivala) with a net asset value of HUF 252 billion (EUR 646 million).
    • Equilor Fund Management Plc.: Handling two private equity funds (Central European Opportunity, Central European Opportunity II) and a real estate fund (Central European Real Estate Fund), these funds have a combined net asset value of HUF 211 billion (EUR 541 million).
    • Central European Venture and Private Equity Fund Management Plc.: Responsible for four private equity funds (Central European I, Central European II, Central European IV, Central European VI) with a net asset value of HUF 24 billion (EUR 61.5 million).
  3. Ádám Matolcsy:
    • Quartz Investment Fund Management Plc.: This firm manages eight private equity funds (Sky I, Sky II, Felis, Central European III, Arezzo, Aurum, Bremdal, Uncia) and six real estate funds (Caracal, Burano, Blue, Garda, Panther, Atrox), with a total net asset value of HUF 116 billion (EUR 297 million).
  4. László Szíjj:
    • Minerva Investment Fund Management Plc.: This company manages four private equity funds (Themis, Via, Vesta, Cronus) and several real estate funds (Minerva, Minerva V50, Minerva Green), with a net asset value of HUF 79 billion (EUR 202 million).

Additional insights and confidential entities

  • Primefund Investment Fund Management: An entity with close ties to the government and Orbán’s loyalists, Primefund’s detailed financials remain largely confidential. However, it is known to be linked to entities such as the Fidesz party, the state-supported Mahir group, Valton security company, and the nationally recognised Kürt Information Security Plc. This secrecy suggests that the total hidden wealth of Orbán’s circle, when including Primefund, could exceed HUF 2 trillion (EUR 5.1 billion).

The discovery of these vast sums, which could potentially fund the construction of multiple new metro lines in Budapest, highlights the immense financial influence wielded by Orbán’s closest allies. The opaque nature of these funds, facilitated by government regulations, raises questions about the origins and oversight of such wealth.

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Unbelievable: Hungary experienced the highest inflation in history

pengő hyperinflation

On 1 August 1946, Hungary introduced the forint as its official currency. The change was necessitated by one of the most severe economic crises in history: the hyperinflation of the pengő.

During the final years of World War II and the immediate aftermath, Hungary experienced an extraordinary economic collapse. The national currency at the time, the pengő, underwent the most severe devaluation ever recorded.

The hyperinflation of the pengő…

pengő hyperinflation
The hyperinflation of the pengő made the introduction of the forint necessary. Photo: depositphotos.com

This period of hyperinflation was so extreme that there was a point when prices doubled approximately every 15 hours, Index writes. The currency’s value plummeted so quickly that the government and printing presses struggled to keep up with the demand for increasingly larger denominations.

In June 1946, just before the introduction of the forint, the price of a kilogram of bread had skyrocketed to 5.85 billion pengő.

This rapid and relentless inflation rendered the pengő almost worthless, making everyday transactions extremely difficult and confusing for the population. People were forced to carry enormous amounts of money for basic purchases, and the introduction of new currency denominations like “millpengő” (one million pengő) and “billpengő” (one trillion pengő) added to the chaos.

…and the introduction of the forint

Hungarian forint
Photo: FB/MNB

To address this crisis, the Hungarian government implemented a stabilisation plan by the summer of 1946. This plan aimed to restore the national income to about half of its pre-war level, ensuring it could adequately meet the basic needs of the population. With a more stable economic foundation in place, the government decided it was time to introduce a new currency to replace the pengő and stabilise the economy.

On 1 August 1946, the forint was introduced as Hungary’s official currency. Initially pegged to the value of gold, the forint was designed to provide a stable and reliable medium of exchange. The first coins issued included denominations of 1, 2, and 5 forints, as well as 2, 10, and 20 fillér coins. Later, various denominations of banknotes were introduced.

Since then, the forint has remained Hungary’s currency, enduring various economic changes. In 2021, it became fully convertible, with its value now compared to major international currencies like the US dollar and the euro. While there have been discussions about phasing out the forint, particularly around Hungary’s accession to the European Union, it remains the country’s official currency. Despite the digital age, where many people store money virtually on bank cards, the forint continues to be a physical part of daily life in Hungary.

Fun facts about the forint: did you know?

  • The medieval gold forint derives its name from the city of Florence, where gold coins were minted as early as 1252 under the name “florentinus”, which became the forint, or florint in the old days.
  • 400,000 septillion pengő had to be exchanged for 1 forint in August 1946.
  • Introduced in 1970, the brass two-forint coin, which at one time was also used in street telephone boxes, was called bélás.
  • The paper 200-forint note was withdrawn almost 15 years ago, on 16 November 2009, and can no longer be officially exchanged.
  • The model of the female figure on the first 100-forint banknote, issued in 1946, was Gizella Tőkés Jánosné Várszegi, an employee of the banknote printing house.
  • The front of the first 1000-forint banknote, introduced in 1983, featured Béla Bartók.
  • When the currency was introduced in 1946, a kilo of bread cost 0.96 forints.
  • The discarded forint banknotes are used to produce energy: the shredded banknotes are pressed into brick-shaped briquettes, which have a high calorific value and have been offered free of charge by the National Bank of Hungary for years for charitable purposes.

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Featured image: depositphotos.com

Breaking: Excessive deficit procedure launched against Hungary

pm viktor orbán azerbaijan Excessive deficit procedure

An excessive deficit procedure will be launched against 7 EU countries, including Hungary, following a Commission decision, the Ministry of Finance confirmed. The ministry, headed by Mihály Varga, said that there is no need to react to the procedure with immediate measures, as the deficit in Hungary will be below 3% by 2026.

Excessive deficit procedure to be launched

Hungary will also be subject to an excessive deficit procedure in the near future, ATV.hu has learned from the Ministry of Finance. “Based on the European Commission’s decision, an excessive deficit procedure will be launched against seven countries, so it is not only Hungary,” the ministry, headed by Mihály Varga, confirmed to ATV.

The ministry added that member states do not need to react to the procedure with immediate measures: the budget deficit should be reduced gradually. The press department of the Ministry of Finance told ATV that the deficit could be 4.5% in 2024, and will be reduced to 3.7% next year and below 3% in 2026.

The European Commission announced in mid-June that it could launch an overspending procedure to prevent countries from ending up in a situation similar to the one that started in 2008, Telex writes.

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Former CEO of Polish Orlen’s payments linked to PM Orbán’s son-in-law

obajtek, orlen

Daniel Obajtek, the former CEO of the Polish company Orlen and recently elected Member of the European Parliament, is receiving payments from a company linked to Viktor Orbán’s son-in-law, István Tiborcz, according to his asset declaration.

Obajtek, who is reportedly hiding in Budapest, allegedly receives a regular income from his interests with Orbán’s son-in-law and other associates of the Hungarian prime minister. This information was revealed through his asset declaration, according to Polish newspaper Wiadomości, Telex reports.

According to his asset declaration, Obajtek receives EUR 15,000 per month from Bayer Construct. This declaration was required due to his new role as an MEP, which necessitates the disclosure of financial resources over the past three years. His monthly salary of EUR 15,000 is notably higher than the approximate EUR 10,000 salary typically received by MEPs.

obajtek, orlen
Photo: PrtScr from YouTube

While no formal charges have been filed against Obajtek, there is potential for charges to arise, especially with the opposition PiS coalition, led by the returning Prime Minister Donald Tusk, supporting Poland’s involvement with the European Public Prosecutor’s Office to investigate corruption. The PiS party, which has had conflicts with Brussels similar to those of Orbán over rule of law issues, also blocked some EU funds accessible to Poland following its accession to the European Public Prosecutor’s Office.

The Polish Prosecutor’s Office and the Parliament’s Investigative Committee have made multiple attempts to summon Obajtek, who is not listed at any Polish address, to appear for questioning.

Several claims surround former Orlen CEO’s EU immunity and disappearance

Several newspapers have previously reported that Obajtek was the head of Orlen until February and has personal connections to Orbán. Obajtek, who is affiliated with the Law and Justice (PiS) party and was in opposition during the last elections, won a seat in the European Parliament in June. He has been granted immunity in the EU, although he has not been prosecuted in Poland yet. Authorities have been unable to question him as a witness, despite his photos indicating that he is in Budapest rather than Poland, contrary to his claims.

Orlen-Polish-energy-giant-fuel-station-Hungary
Photo: facebook.com/ORLENOfficial

After being dismissed as CEO of Orlen in February, Obajtek has been rarely seen in Poland. He has consistently denied allegations that he is evading impeachment by seeking immunity in the European Parliament. According to VSquare, he also refutes claims that he fled to Budapest.

Although Obajtek is not currently a prime suspect in his home country, Polish prosecutors wish to question him regarding several matters, including the merger of state-owned energy companies Orlen and Lotos, and the sale of a 30% stake in the Gdańsk refinery to Saudi Aramco. They also seek to discuss Orlen’s substantial deficit caused by significant cuts in fuel prices in the autumn of 2023. This deficit might be linked to a strategy aimed at boosting the popularity of the ruling Law and Justice party with cheaper fuel ahead of the parliamentary elections, as well as a transfer of PLN 1.5 billion.

Read also:

  • Corruption? Orbán’s son-in-law involved in government investments worth billions – Read here
  • Bank business owned by Orbán’s son-in-law is flourishing – Read here

Prices at the Hungaroring: Outrageously expensive or the cheapest in Europe?

Formula 1 Hungarian Grand Prix 2024

The Hungarian Grand Prix weekend of Formula 1 has begun with fans arriving from all over the globe, and along with them, a heat wave that is raging across the country. However, if attendees want to cool down with a drink during the races, they will have to dig deep into their pockets. Visitors from Hungary and abroad had their say on the prices at the Hungaroring. Some prefer to bring food from home, while others say the track is by far the cheapest in Europe.

Some may feel the weekend costs an arm and a leg

“Our reader encountered staggering prices at the Hungarian Grand Prix of Formula 1,” begins a recent article from Pénzcentrum, which takes a look at the prices of the Hungarian Grand Prix. Readers sent the news portal pictures of the situation at the race weekend’s venue, and indeed, as the portal writes, the event is not for those on a tight budget.

The photos show that 3.3 decilitres of beer costs HUF 1,650 (EUR 4,22), while half a litre costs HUF 1,950 (EUR 4,99). Those who do not drink are slightly better off, as a can of non-alcoholic lemon Gösser sells for HUF 1,250 (EUR 3.20).

To get some food with the refreshments, one will have to dig even deeper. At one of the vendors photographed, a sausage with bread costs HUF 5,500 (EUR 16 – as calculated by the vendors), a double patty burger is HUF 5,400 (EUR 16), and a chicken burger goes for HUF 5,200 (EUR 15). One serving of grilled chicken breast with bread and pickles is HUF 4,950 (also calculated by the vendor to be EUR 15). A portion of French fries costs HUF 1,900 (EUR 6), a slice of bread is HUF 400 (EUR 1.5), while a portion of sauce (ketchup, mayo, or mustard) is HUF 500 (EUR 1.5).

As Pénzcentrum points out, the conversion of the prices from HUF into EUR is also peculiar, as the exchange rate used by the vendor appears to be slightly different from the official rates. According to the paper’s calculations, the restaurant uses an exchange rate of around 350 forints.

At another booth at the Hungaroring, shown in a video by Blikk, the exchange rate is slightly different, with 1 euro costing approximately 375 forints. At that location, a bottle of water or a soft drink sets you back HUF 1,500 (EUR 4), while a beer is HUF 2,000 (EUR 5,5). A Magmum ice cream sells for HUF 2,000 (EUR 5,5), and if attendees would like a pick-me-up, they can buy an espresso for HUF 1,000 (EUR 3).

Blikk spoke to two vendors about their prices, asking if inflation had made it necessary to raise prices. Both vendors said that they had not raised prices this year. In the video, Blikk’s reporter also talked to some fans coming to the Grand Prix, asking their opinions on the prices at the Hungaroring. One Hungarian visitor laughed and said, “Ah, everything is very expensive! So I packed with me as many sandwiches as I could, and as much water as I could.”

prices at the Hungaroring
Photo: Hungaroring / FB

Prices at the Hungaroring are not too high from a foreigner’s perspective

Tourists interviewed by Blikk, on the other hand, said that the prices at the Hungaroring are totally acceptable. One Englishman, for example, asserted that “Hungarian prices are very good, the best in Europe.” A group from the Netherlands told the magazine that they find the prices at the Hungarian Grand Prix nice and that food and drinks are “not that expensive.”

Two fans from Germany were on a similar opinion, saying “In general, compared to the other countries, it’s amazing. It’s pretty cheap. […] We looked at other grand prix prices and really, in comparison, [the Hungarian Grand Prix] was the most affordable with the things you get for the price.” Tourists from the Czech Republic thought the same, expressing their pleasant surprise at how inexpensive the Formula 1 weekend has been so far, and also how economical Budapest has been for them on the whole.

Not all Hungarian visitors were unhappy with the prices at the Hungaroring either, with one man telling Blikk that he did not think the food and drinks were outrageously expensive. If someone takes the trouble to come out for the weekend, the prices are suitable. Another Hungarian woman expressed a similar view, comparing the prices to nightclubs.

A third woman, also from Hungary, said the tickets for the weekend were also affordable, although she added that they were affordable “for some.”

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