trade

Hungary March retail sales up 16.2 pc yr/yr

Retail sales in March grew by an annual 16.2 percent from a low base, the Central Statistical Office (KSH) said on Wednesday.

Calendar-year data also showed 16.2 percent growth.

Food sales increased by 0.2 percent, non-food sales by 29.7 percent, while vehicle fuel sales jumped by 51.4 percent.

Commenting on the data, analysts said that retail sails had grown on the back of bonuses and tax refunds paid in February, fuel tourism induced by the government price cap, the low base, and inflation expectations.

Gergely Suppán of Magyar Bankholding said retail turnover exceeded expectations in March. One-off government measures such as the PIT refund for families raising children, the 13th month pension, and allowances for service members boosted already robust wage growth, which was around 13 percent, he said. Retail sales grew on the back of price caps on fuel and basic foods near the border, where it boosted shopping tourism, he said. In view of those tendencies, Bankholding expects retail growth to be above 10 percent this year, he said.

Péter Virovácz of ING Bank said the two-digit jump in retail sales came after a rise of 7.3 growth in 2021, indicating that, besides the low pandemic-related base, other factors such as fuel tourism, aid to and consumption by Ukrainian refugees, and inflation expectations may have played a role. He said the March data were likely indicative of a blip rather than structural change, though growth at this level was “definitely unsustainable” and would raise first-quarter GDP greatly, he said.

Hungary trade balance shows EUR 117 m deficit in Feb

Hungary’s trade balance showed a 117 million euro deficit in February, the Central Statistical Office (KSH) confirmed in a second reading of data released on Monday.

Hungary, an export-driven economy where trade surpluses are the norm, had a trade deficit for the eighth month in a row, KSH said.

Exports rose by an annual 18.7 percent to 11.500 billion euros and imports climbed by 30.5 percent to 11.617 billion euros.

Trade with other European Union member states accounted for 76 percent of exports and 70 percent of imports.

Hungary’s terms of trade deteriorated by 7.1 percent during the period as the forint edged up 0.3 percent to the euro but weakened by 6.3 percent against the dollar.

Read more about Hungary’s budget

Hungary’s seasonally-adjusted PMI climbs to 58.9 in April

Hungary’s seasonally-adjusted Purchasing Managers Index (PMI) rose to 58.9 points in April from 57.6 in March, the Hungarian Association of Logistics, Purchasing and Inventory Management (Halpim) said on Monday.

A PMI over 50 signals expansion in the manufacturing sector.

Among the PMI sub-indices, the new orders index climbed from the previous month and remained over 50.

The production volume index also rose and stayed over the 50-point mark.

The employment index increased, and showed growth.

Delivery times were longer than in March.

The gauge of purchased inventories rose at a slower pace and was over the 50-point mark.

Hungary, Turkey set up joint economic and trade committee

Hungary, Turkey set up joint economic and trade committee

Hungarian Foreign Minister Péter Szijjártó and Turkish Trade Minister Mehmet Mus signed the founding statement of a new Hungarian-Turkish economic and trade committee in Ankara on Tuesday.

Addressing a joint press conference after the signing, Szijjártó said exports had reached record levels in both Hungary and Turkey in 2021.

Exports came to 209 billion euros in Turkey and 119 billion euros in Hungary last year, the minister said.

This puts Hungary’s export performance 34th in the world, even when it is ranked 95th by population, he said.

Bilateral trade turnover reached a record 4 billion dollars in 2021, a 15 percent increase over the 2020 figure, Szijjártó said.

Hungarian exports to Turkey came to 2.5 billion US dollars last year, up 21 percent from 2020, Szijjártó said.

As regards the development of Hungarian-Turkish economic cooperation, Szijjártó said the two countries had set up an operative working group with a view to boosting economic and trade cooperation. Also, the Hungarian government is supporting a 100 billion forint (EUR 266.5m) investment by Turkey’s Sisecam Group in Kaposvár, in south-western Hungary, with a 14 billion forint grant, he said. Meanwhile,

Hungary’s Eximbank has opened a 105 million euro credit line to help finance Hungarian-Turkish business cooperation.

Szijjártó noted that Hungarian health industry producer Medicor was building a neonatal incubator plant in Turkey with the support of the Hungarian government, adding that the government was helping Hungarian businesses expand into the Turkish market in the areas of water management, the printing industry and the construction of power plants.

On another subject, Szijjártó noted that 50 Turkish customs officers were posted on the Hungary-Romania and Hungary-Serbia borders in order to ensure the smooth flow of freight traffic. He also noted that the Turkish, Bulgarian, Serbian and Hungarian ministers in charge of transport will establish a railway working group after east-west shipping faces significant challenges and has become partially impossible because of the situation in Ukraine.

Szijjártó also said that

because of Turkey’s expanding role on the global political and economic stage, Hungary will increase its diplomatic staff in Ankara.

Read more news about Turkey and Hungary relationship.

As we wrote today, Cornerstone laid for the new 3,000 sqm Hungarian Embassy in Ankara, details HERE.

Good deal for the Hungarian government: petrol tourism has boosted vehicle fuel sales

MOL petrol station

Vehicle fuel sales in Hungary climbed in the double digits in the first quarter from the same period a year earlier, the Tuesday issue of business daily Világgazdaság said, citing figures of the Hungarian Petroleum Association (MASZ).

Petrol sales climbed by 29.5 percent to 383 million litres, while diesel sales increased by 36.7 percent to 712 million litres.

Even excluding the effect of the low, pandemic base, vehicle fuel sales rose by around 20 percent, the paper said, pointing to petrol tourism as the “main reason” for the increase, MASZ secretary-general Otto Grad told the paper.

The maximum price for normal quality is HUF 480 per litre, while premium fuel costs the market price, which is now close to HUF 690 for petrol and HUF 790 for diesel, according to holtankoljak.hu. As a result, sales of 95-grade petrol rose by 40 percent in the first quarter, while premium petrol fell by 12 percent.

The “whites” have lost their price advantage

The Independent Association of Petrol Stations (FBSZ), which brings together smaller, so-called “white” petrol stations outside MÁSZ, does not compile sales statistics, but they feel their sales are declining, Gábor Egri, president of the association, told VG.

The small stations have lost their price advantage over the big ones with the introduction of the price cap.

“It’s no longer worth driving off the motorway for a cheaper white pump, because you can fill up for the same price at the track at petrol stations advertised by OMV as Austrian quality, by Shell as Formula 1 and by Mol as shops,” he said. Incidentally, the FCO has still not received a reply from the Ministry of Innovation and Technology to its question about the means by which service stations can prevent unauthorised drivers from filling up with fuel from the price cap.

Price cap until May 15?

Hungary’s government temporarily capped retail petrol and diesel prices at 480 forints (EUR 1.28) per litre from November 15 to ease accelerating inflation. Petrol price stop expected to last until 15 May.

Inflation in Hungary is dramatic!

Market in Hungary

Economic research institute Kopint-Tárki has lowered its forecast for this year’s economic growth to 4 percent from 5 percent. In its latest forecast published on Thursday, Kopint-Tárki said domestic consumption would grow by 4.3 percent and gross capital accumulation by 4 percent.

Its inflation was forecast upped to 8.7 percent from its December projection of 5.5 percent, while it projected Hungary’s current-account deficit increasing to 5 percent of GDP.

KSH: Hungary trade deficit at EUR 91 m in Feb

Hungary’s trade balance showed a deficit of 91 million euros in February, the Central Statistical Office (KSH) said in a first reading of data on Thursday. Hungary, an export-driven economy where trade surpluses are the norm, has shown a deficit for the eighth month in a row. Exports rose by an annual 17.7 percent, to 11.403 billion euros and imports climbed 29.2 percent to 11.494 billion.

Trade with other European Union member states accounted for 76 percent of exports and 69 percent of imports.

Takarékbank chief analyst Gergely Suppán said higher industrial output paired with rising factory gate prices are boosting exports, calculated in euros, while strong domestic demand and dearer commodities and energy are lifting imports. The higher commodities and energy prices are hurting Hungary’s terms of trade, although the jump in grain prices is mitigating the effect “to a small degree”, he added.

Food shortages in Hungary? Here is all you have to know 3
Read alsoFood shortages in Hungary? Here are all you need to know

Government to increase Hungarian ownership in retail chains above 50% by 2026?

Asked about the government’s planned measures, PM Orbán said yesterday that the government would give priority to maintaining financial stability. Keeping the country’s GDP growth over the EU average is another goal, he said, adding that the government would take further measures to improve demography figures.

Orbán said the government plans to extend the system of family support measures, but added that in Europe’s current economic situation timing is still an issue. Asked about Hungary’s next government, Orbán said the newly elected parliament should convene by May 3 and ask the prime minister to form a government. “It is not stated by law that the leader of the winning party should be asked to, but I have certain hopes of this kind,” he said.

Orbán said the new government cannot be formed before the end of May. He did not rule out that János Lázár, his former chief of staff and winner in Hódmezővásárhely, would return to the government and would be assigned with the task of increasing Hungarian ownership in retail chains to above 50 percent.

Asked if Péter Szijjártó remains foreign minister, Orbán said he would like to keep him in the government but it depends on the minister’s own decision.

Asked if the caps on fuel prices and interest rates would be maintained, Orbán said the government would make every possible effort to protect the people and families from price increases. The caps will remain in effect until the deadlines announced previously, and the government will seek to extend them, he said, adding that negotiations with fuel traders, banks, food producers and retailers are under way. Orbán said he saw a chance of maintaining price caps on utilities.

If the Paks nuclear power plant is upgraded and solar energy use increased as planned, the share of gas in Hungary’s energy mix can be reduced to 10 percent by 2030,

he said.

Orbán confirmed the government’s commitment to maintaining financial stability. He noted that the budget deficit and the government debt had been reduced even during the election campaign. The situation of Hungary’s economy will depend on the depth of the European crisis, he added.

In reply to a question, Orbán ruled out that the government would take austerity measures and raise taxes affecting the public. However, there might be a need for

special taxes to be imposed on multinational companies

and others, similar to the ones introduced in 2010, he said, adding that such measures would depend on the EU’s ability to halt energy price rises.

Asked about the EU’s recovery and resilience funds, Orbán said that Hungary has access to a variety of other funds on the money markets because its economy is in a good shape. “It is inconceivable for Hungary to remain without money,” he said. Asked about pay rises for teachers, Orbán said the government would fulfil its promise for 10 percent hikes this year and the next two. He admitted that teachers are right on saying that this is insufficient but added that further increases would depend on the country’s economic performance.

Orbán said in legal terms the April 3 referendum on child protection proved to be invalid but “never before had so many Hungarians adopted a uniform stance on an issue”.

“The outcome of the referendum unambiguously implies a political obligation,” he said. Asked about the recent attacks on the foreign ministry’s servers, Orbán said that all Hungarian ministries are exposed to permanent attacks from several directions. “We keep defending ourselves,” he said, adding that he saw nothing extraordinary in these developments.

Citizens learn how to use weapons in Ukraine
Read alsoHave Hungarians started to buy a lot of weapons!?

Latest data about the Hungarian economy’s performance released

Hungary’s trade balance posted a 244 million euro trade deficit in January, the Central Statistical Office (KSH) said in a second reading of data released on Friday.

Exports grew by an annual 16.5 percent to 10.414 billion euros, while imports increased by 33.4 percent to 10.657 billion.

Trade with other European Union member states accounted for 78 percent of exports and 71 percent of imports. Hungary’s government sector had a 3,736 billion forint deficit in 2021, equivalent to 6.8 percent of GDP, calculating with the European Union’s accrual-based accounting methodology, the Central Statistical Office (KSH) said in a preliminary release on Friday.

The deficit relative to GDP was a full percentage point under the gap in 2020.

Hungary’s seasonally-adjusted Purchasing Managers Index (PMI) rose to 57.6 points in March from 53.8 in February, the Hungarian Association of Logistics, Purchasing and Inventory Management (Halpim) said on Friday. A PMI over 50 signals expansion in the manufacturing sector.

Among the PMI sub-indices, the new orders index climbed from the previous month and remained over 50.

Hungarian Election Viktor Orbán and Péter Márki-Zay
Read alsoCNN: Despite Orbán’s duplicity, will he still win Hungarian elections?

Zelenskiy: Europe should not listen to any excuses from Budapest! – VIDEO

Zelenskiy Budapest Hungary Denmark address

Last week Ukrainian President Volodymyr Zelenskiy addressed members of the Council of Europe. He thanked for the help of the European countries but mentioned some that still do not support 100 PC all Ukrainian demands. Among these, he talked about, for example, Portugal and Germany. But he attacked verbally only PM Viktor Orbán’s Hungary. The president said Orbán has to decide who he stands with. Zelenskiy suggested he was pro-Russian in the ongoing war. Yesterday he criticized the Orbán cabinet addressing the Danish parliament

Horrors happening in the Ukraine

The Russian Federation invaded Ukraine on February 24. Despite the Kremlin’s expectations, Ukrainians did not surrender but fought back hard. Their president, the former actor and TV star Volodymyr Zelenskiy addressed many parliaments and institutions, including the Council of Europe, the US Congress and the Israeli parliament.

Yesterday he talked to Danish MPs who listened to his speech in the Christiansborg Palace in Copenhagen. The president started with the horrors Ukrainian citizens experienced because of the Russian attack. He especially highlighted the sufferings of the residents of the besieged and almost destroyed Mariupol. Zelenskiy talked about Russian war crimes and stressed the EU should impose harsher sanctions against Moscow to stop the Kremlin’s war machine.

He accused Russians of looting, deporting people to Russia by force, raping women and underage girls.

He said the invaders had already taken more than 2,000 children to Russia.

“Sanctions against Russia must be strengthened. Constantly. We need to give up Russian oil, we need to block trade with the Russian Federation, we need to close ports for Russian ships. And this must be the solidarity policy of the European Union, of all the member states” – he said. He praised Denmark as the country from where the basic principles of the European Union, the Copenhagen criteria come from.

Zelenskiy: the EU should not listen to the excuses of Budapest  

He said there could be no Russian branches in Europe that split the European Union inside out. He said these branches help Russia to make as much money as possible. “Everyone knows very well who in the European Union opposes humanity and common sense. Who does nothing at all to help establish peace in Ukraine. This must stop, and

Europe must stop listening to any excuses from official Budapest.

I am grateful for Denmark for its principled position” – he added. Finally, he invited Danish companies, knowledge, people to rebuild Ukraine after the war.

Later, he stressed again on his Telegram channel that the EU must extend the sanctions against Russia. Everybody has to give up Russian oil, nobody should trade with Moscow, and all ports must be closed for Russian ships – blikk.hu reported.

As we reported before, this is not the first time the Ukrainian president slammed the Hungarian government. After the Ukrainian president attacked him last week, Orbán said in an interview that Hungary was doing what it could.

“But we can’t be expected to ruin ourselves…”

The prime minister insisted that Zelenskiy had addressed others besides himself at the recent summit, and “attacked anyone he considered was lacking in commitment” in defending Ukraine. Orbán said Ukraine had an interest in involving “as many countries as possible” in the war, “so we must absolutely make clear that we will not take part in the war”.

“Our moral responsibility is not for Ukraine but for our own people.”

Hungary, he said, was providing Ukraine all the aid it could, but the government refused to do anything that would “ruin the community of the nation”.

Here is Zelenskiy’s full yesterday speech with English subscription:

https://www.youtube.com/watch?v=QPtWRoVsL20

Zelenskiy Budapest Hungary Denmark address
Read alsoZelenskiy: Europe should not listen to any excuses from Budapest! – VIDEO

This is how the Hungarian government would prevent grain prices from rising

agriculture-hungary

The government’s recent decision to allow the imposition of controls on wheat exports under certain circumstances could prevent prices from soaring, daily Magyar Nemzet reported on Tuesday.

The paper noted that supplies were currently smooth, adding that the measure could ensure that domestic demand is met “even in the most difficult situations”.

Századvég analyst Gábor Regős told the paper that under the government’s measure, the minister of agriculture is empowered to halt exports when necessary rather than imposing a full ban. He said

the country had a large surplus of wheat, barley, and maize, and “a full ban would cause serious losses of revenue to the sector”.

Exports will be allowed unless the security of supplies is compromised or prices soar, he added.

There is worry on international markets concerning a prospective halt in wheat exports by Ukraine and Russia. Regos said the impact of the war on Ukraine’s agricultural production could not be forecast yet.

Zsófia Potsa, general secretary of the association of grain producers and traders, said the government measure had come by surprise, but added that domestic supplies were not at risk.

“Hungary produces more wheat than it consumes each year, and supplies for the domestic market have been ensured even in the worst years,” she said.

Have Hungarians started to buy a lot of weapons!?

Citizens learn how to use weapons in Ukraine

The experience is not unique in Hungary. However, the number of purchases increased significantly in many weapon shops in the country. The starting date of the rise is uniform: the day when Russia invaded Ukraine. Telex.hu asked the shops about the past week because their readers complained they could not buy ammunition in the capital. Furthermore, shops ran out of flare guns.

“Since the start of the Russian invasion, the level of trade in our shop increased significantly. The rise is threefold compared to an average month-end period,” Gábor Vass, the owner of four weapon stores in Budapest, told telex.hu. Mr Vass is also the editor-in-chief of the Kaliber Magazin, a paper specialised in arms and ammunitions. Vass said that they ran out of the rubber bullet guns even though they are the most expensive in the category of non-lethal, free to hold guns. Furthermore, they sold much more alarm guns than before. Interestingly, people have started to buy even crossbows these days.

The owner said that people would like to be in safety. That is why they buy these weapons. The buyers say that evil-minded people will also arrive with the many refugees coming from Ukraine. Therefore, they think they need such weapons. Of course, they would be of no use against a tank or a soldier with a Kalashnikov rifle.

  • Read also: 

Not every arms store experiences the same increased number of buyers. Nimród–Derringer said that they did not experience increased demand. The number of people asking for more information rose, but they explained away the trend with the product shortage during the coronavirus epidemic. They said people buy in waves when the stores get a new delivery of goods.

Gábor Vass said they experienced a similar trend at the beginning of the migration crisis in 2015. It lasted for 1-2 weeks then, and the outbreak of the epidemic brought the same phenomenon. The latter was common in all Hungarian weapon stores. The Nimród–Derringer arms store, for example, said that between March and April in 2020, the rise in the number of people buying weapons was palpable.

László Kovács, the CEO of Viapharma Ltd., running another arms store, said that they prepared for a similar wave of increased buying as in March 2020. However, they have not experienced a significant rise yet. Mr Kovács said that demand grew but not two- or threefold, only by 20-30 pc. The trend was that people did not come to buy weapons until the end of February. The business started to flourish at the end of February, he added. Therefore, it may be that the plus 20-30 pc only follows the pattern of the previous years.

Mr Kovács said their buyers came from the countryside now because the stores there ran out, adding that demand rose for rubber bullet guns. He stated that they have some products where they face shortages. But that is not because of the Russian invasion, the product shortage and transport problems followed the coronavirus epidemic.

Featured image: illustration. Photo of Ukrainian volunteers learning about weapons use in Uzhorod (Ungvár), Transcarpathia.

Citizens learn how to use weapons in Ukraine
Read alsoHave Hungarians started to buy a lot of weapons!?

Hungary trade balance shows deficit for sixth month in a row

Economy Hungary industry

Hungary’s trade balance showed a deficit for the sixth month in a row in December, a second reading of data released by the Central Statistical Office (KSH) on Thursday shows.

The first reading of the data, released on February 8, had shown a surplus of 187 million euros for the month, but the second reading showed a deficit of 378 million euros. Hungary, an export-driven economy where trade surpluses are the norm, has had trade deficits every month since July. Exports rose by an annual 17.9 percent to 9.948 billion euros and imports climbed 26.6 percent to 10.326 billion euros in December.

Trade with other European Union member states accounted for 74 percent of Hungary’s exports and 71 percent of its imports. Hungary’s terms of trade deteriorated by 5.4 percent during the period as the forint weakened 2.3 percent against the euro and 10 percent to the dollar. For the full year, exports increased by 13.6 percent to 119.309 billion euros and imports rose by 18.2 percent to 117.413 billion euros. The trade surplus reached 1.897 billion euros, narrowing from 5.618 billion euros in 2020.

Retail sales in Hungary rose by an annual 4.5 percent in January, slowing from 6.7 percent in the previous month, the Central Statistical Office (KSH) said on Thursday. Adjusted for calendar-year effects, retail sales rose by 4.1 percent. Adjusted food sales edged up 0.1 percent and non-food sales rose by 6.4 percent. Vehicle fuel sales climbed 10.7 percent.

shell
Read alsoShell to restrict fuel purchases in Hungary!

Shell to restrict fuel purchases in Hungary!

shell

In its network of 191 gas stations in Hungary, Shell Hungary has introduced a restriction on the purchase of fuel at the ten stations most used by international freight traffic.

Stations next to the main transit routes are mostly affected

The ten selected stations are situated next to the main transit routes. The decision was justified by increased demands.

In the recent period, especially in recent weeks, due to the price cap on petrol prices introduced by the Hungarian Government, demand has increased dramatically, writes napi.hu. Compared to the same period last year, there was already a strong increase in turnover in January, and in February petrol stations expect a further increase as well.

The Hungarian government has capped the petrol price at HUF 480 (EUR 1.35), above which no higher price can be set. The measure was introduced on 15 November 2021 and then extended in February for 3 months, until 15 May 2022.

Cheaper fuel in Hungary than in neighbouring countries

Freight carriers and refuelers who purchase large batches of fuel have already started frequenting only the stations that are typically used by locals. The number of foreign passengers and truck customers has also increased significantly. Due to the introduced price cap and the market situation, the price of petrol is more expensive in many of the neighboring countries, such as Austria or Slovakia. Those crossing the country often refuel their buses or trucks in Hungary, causing significant problems for these gas stations. Many stations find it challenging to keep their business profitable until the price cap is in order, and some stations may close temporarily or permanently.

The number of intraday purchases is still not limited at these stations, only the one-time quantity that can be dispensed from the well column, says 444.hu. The measure affects less than 10 per cent of Shell’s network, with only motorway stations. The measure introduced on Tuesday is valid until revoked.

The stations involved are:

Székesfehérvár M7 highway A
Székesfehérvár M7 highway B
Tata M1 highway A
Tata M1 highway B
Gelej M3 highway A
Gelej M3 highway B
Lajosmizse East
Lajosmizse West
Balatonkeresztúr M7 highway A
Balatonkeresztúr M7 highway B

Hungarian minister meets Electrolux, Ericsson heads in Stockholm

sweden swedish flag hungary flag

Swedish investments are bringing future technologies to Hungary while contributing to the country’s long-term growth, Péter Szijjártó, the minister of foreign affairs and trade, said after meeting executives of Electrolux AB and Ericsson in Stockholm on Tuesday.

The 170 Swedish companies currently employing over 150,000 people in Hungary are important players in the transformation of its economy, and their cutting-edge technologies are an important factor in its future success, he said.

“Hungary’s government has created a friendly tax environment, and it supports investments that attract investments with high value-added, cutting-edge technologies, and large R and D content to Hungary,” he said.

Electrolux, which has been present in Hungary for thirty years, is embarking on its largest investment yet in Nyíregyháza, in eastern Hungary, where a 35 billion forint (EUR 98m) development will create a plant manufacturing smart fridges, he said.

Ericsson is developing a 6G network with the help of its engineering team in Hungary, and continues to bring R+D capacities to the country, he said.

plane
Read alsoWizz Air passengers forced to wait half a day in Stockholm

The proportion of foreigners in the Hungarian economy has decreased

budapest hungary

Viktor Orbán, the Prime Minister of Hungary, launched the opening of the financial year over the weekend. The goal is the continual growth of the Hungarian economy. However, according to Orbán, Hungary must avoid five types of trap situations.

Five trap situations 

When examining an economy, five different trap situations can be identified. Hungary must avoid these if it is to achieve a successful economy. These five trap situations are:

  • a trap of high foreign ownership
  • the trap of dominance of large exporting companies
  • negative profit balance trap
  • the trap of duality
  • a trap of rural backwardness.

Prime Minister Viktor Orbán highlighted the danger of a high share of foreign ownership.

The high share of foreign ownership in Hungary was significant for the first time in the period before 2010. In the 2010s, the share of foreigners in the Hungarian economy decreased slightly, from 51.6 per cent to 49.2 per cent writes vg.hu.

There are currently 14,000 foreign companies operating in Hungary.

Foreign ownership in Hungary

The role of foreigners in the domestic economy has decreased. We can also see this in terms of sales and investment. However, the share of foreign exports is increasing.

The share of Hungarian-owned companies in the media, energy and banking sectors also increased.

While in 2010, for example, the role of Hungarian ownership in energy was below 29 per cent, in 2020 it was already 56 per cent. Similar significant growth can be observed in the banking sector. It stood at 40 per cent in 2010, while by 2020, 58 per cent of the banking sector was domestically owned. The Hungarian ownership share increased in several key sectors. 

The proportion of Hungarian companies is also between 50-70 per cent in trade, food production and tourism.

At the end of 2020, the Hungarian ownership share in the human health and social care sector, construction and transport was over 70 per cent.

Overall, it can be said that great progress can be observed in gaining Hungarian ownership, writes index.hu. Progress is clear in key sectors, but there is still room for growth in others.

Orbán cabinet: Planned EU ban on red meat, wine promotion ‘unacceptable’

red meat beef

A European Commission plan to prohibit the promotion of red meat and wine in the bloc is “unacceptable”, a state secretary of the Hungarian agriculture ministry has said.

“Brussels is not seeking solutions,” Zsolt Feldman told Hungarian public media in Brussels late on Monday after a meeting of EU agriculture and fishing ministers.

He said the Hungarian government had been helping struggling swine farmers with subsidies totalling 4 billion forints (EUR 11.2) at the height of the crisis brought about by the pandemic.

Restricting the promotion of red meat and wine “will not promote healthy lifestyles or sustainability”,

Feldman said. “Societies are able to shape their own dietary habits without artificial methods invented by bureaucrats in Brussels.”

The EU “has more and more initiatives based on ideologies rather than supported by impact studies, which could lead to shrinking production,” he said.

Feldman said 19 “reasonable” countries had expressed disagreement with the planned restrictions, and he suggested that the planned measure may contribute to “food production being shifted to third countries, jeopardising the security of supplies to the EU”.

Read also40-50% of Hungarian restaurants will fail and close

Ban on single-use plastics yields significant results in Hungary

shopping plastic bag

The ban on single-use plastic products introduced in Hungary last year has yielded significant results, the daily Magyar Nemzet said on Tuesday, citing the state secretary for the development of circular economy, energy and climate policy.

Attila Steiner said most companies’ stocks of single-use plastic products had run out since the ban entered force on July 1, 2021. Retailers have adjusted to the changes well, switching from plastic bags to bio-degradable materials, with many paper and catering companies introducing paper plates and wooden cutlery.

“Online surveys show that people agree with the restrictions and … have found alternative solutions,” he said.

Discarded plastic bags have a noticeable impact on the environment, and an initiative dubbed Let’s Clean the Country and an application for revealing illegal waste dumps has been introduced to address this problem, he said.

Legal restrictions combined with schemes including a waste collection scheme dubbed You Pick it Up are especially effective in leading to a cleaner environment, he added.

In line with European Union restrictions, since last July manufacturers and retailers have been obliged to better inform buyers about the environmental impact of plastics and waste collection, he said. This has been enhanced by a registration system introduced in January which can monitor how these obligations are being kept, he added.

The government allocated 10 billion forints last year to help companies make technology upgrades, and an information portal has been set up at www.vali.hu to assist them in applying for funding, he said.

Parliament approved the main directives for reforming waste management last year, an important element of which is the recycling of plastic and glass containers for drinks and metal cans. In response to an online survey which showed that people would support the introduction of harsher penalties against illegal waste, the government has also started preparing a new system to address this issue, he added.

Steiner said that shaping public opinion is key to achieving change, and he welcomed the responsiveness of children to positive related messages.

Tisza River Pollution Environment Waste Garbage
Read alsoAll Hungarian rivers are full of microplastics

2021 had been the best year in Hungary-Russia cooperation, says foreign minister

lavrov szijjártó

The Hungarian government aims to further strengthen a recent “wave of dialogue between Western allies and Russia” to ease tension, the foreign ministry quoted Péter Szijjártó as saying in Moscow on Tuesday.

The foreign minister had talks with Russian counterpart Sergey Lavrov, after which he noted the recent emergence of “extremely serious tension” in central and eastern Europe, which he said was sharply against Hungary’s national security interests.

Dialogue is the only way to ease that tension “using all diplomatic means”, Szijjártó said.

“We have come to Moscow to support that dialogue,” he added.

Szijjártó called recent talks between the West and Russia “good news”, noting two conversations between Russian President Vladimir Putin and French President Emmanuel Macron over the past few days, and a planned call between Lavrov and US counterpart Antony Blinken later on Tuesday. He added that another call between Putin and British PM Boris Johnson was being negotiated, while a British ministerial delegation could soon visit Moscow.

Szijjártó said

2021 had been the “best year” in Hungary-Russia cooperation and the current talks “have made it clear that Russia is ready to continue, as it benefits both sides”.

At their talks, Szijjártó and Lavrov adopted an action plan concerning cooperation in food production, energy, space research and health, Szijjártó said.

“Last year the cooperation between Hungary and Russia greatly contributed to good responses to health and energy crises in the world, and that cooperation will continue to serve Hungary’s interests in future,”

he added.

As we wrote today, PM Orbán meets with President Putin in Moscow, read details HERE.

hungarian defence forces
Read alsoOrbán cabinet: There is no need for a 1,000-strong NATO contingent to be stationed in Hungary