HATC SAMPLE EDITION:
|
|
13th March, 2025
Local councils autonomy under threat as govt tightens grip on finances
In a move seen as an effort to tighten government control of local authorities, a proposed bill would authorise the head of the State Treasury to appoint a budget commissioner for an indefinite period to any local authority that experiences a “serious, deteriorating financial and economic situation”.
However, the proposal, presented by Local Authority and Regional Development Minister Tibor Navracsics at a closed-door meeting with local government leaders on Tuesday afternoon, does not define when a local authority’s financial situation is considered deteriorating or serious.
A source told Szabad Europa that the purpose of the amendment may be to put a commissioner in charge of Budapest from July 1.
It is well known that a significant number of local authorities are struggling with financial problems, as the government takes a significant share of local tax revenues and redistributes less of it, the website observes.
As a result, local councils are constantly forced to utilise overdrafts from their bank.
A budget commissioner could in effect take complete control over a local authority’s operations, as their countersignature would be required for all expenditures.
In a related change, local governments of county seats, Budapest and its districts are required to transfer funds exceeding 5% of their budget expenditure in the previous year to the State Treasury from October 1.
From then on, they must turn to the Treasury if they want to get access to their own money.
This will apply to municipal governments from 2027, and then to all local authorities from 2028.
According to the mayors, the proposed amendment spells the end of local council autonomy, which is also enshrined in the Fundamental Law. (szabadeuropa.hu; 444.hu)
|
13th March, 2025
Tax exemption to be extended to mothers raising one child
The cabinet has decided that from next January 1, mothers younger than 30 and raising one child will also be exempt from paying income tax, Prime Minister Viktor Orban announced on Facebook yesterday afternoon.
Orban repeated his goal that women who have children should not be in a worse position financially than those who do not.
Orban announced on February 22 that mothers raising at least two children will be exempt from tax for life. The measure will be gradually introduced from 2026.
The government decided two years ago to exempt mothers under 30 from paying taxes on income tax up to the average wage, and has now decided to completely exempt them from any form of income tax.
The benefit will be extended to every mother under 30, not only to those who gave birth to a child in the past two years. (hvg.hu)
|
13th March, 2025
Poll shows Tisza with nine-point lead over Fidesz
Some 56% of Hungarian voters want a change of government, despite the lifetime income tax exemption for mothers and the government’s ongoing “Good news” ad campaign, according to the latest opinion poll conducted by Median, which closed at the weekend.
The survey, commissioned by HVG, found no major shift in party preferences.
Fidesz grew a hairsbreadth stronger since last November, while the Tisza Party weakened to a similar extent, but it still has the support of 46% of decided party voters, ahead of Fidesz at 37%.
In addition, Tisza supporters are the most committed: 90% of them say they would definitely turn out if elections were held on Sunday, while only 80% of Fidesz voters said the same.
Overall, 56% of eligible voters want a change of cabinet, and 35% would consider it better if the Orban cabinet remained.
Based on the poll results, only the far-right Our Homeland party would reach the 5% parliamentary threshold. (nepszava.hu; hvg.hu; 444.hu; magyarnarancs.hu; telex.hu; hang.hu)
|
13th March, 2025
State secretary gets Varga MP seat
The National Election Committee on Tuesday transferred Mihaly Varga’s parliamentary mandate to Attila Fulop.
Varga resigned the MP’s mandate he had won at the 2022 elections in February after he was nominated to take over the running of the MNB. Varga took the oath of office as governor of the central bank last week.
Fidesz announced Fulop as Varga’s successor.
The National Election Committee voted to issue the mandate to Fulop with 13 affirmative votes.
The resolution is not binding for the time being, as legal remedy can be requested within three days.
Fulop announced following a recent visit to Prime Minister Viktor Orban’s office that he had become the chairman of the party chapter in the parliamentary constituency in the Third District. (telex.hu; hirklikk.hu; hirado.hu; 24.hu; 444.hu; mfor.hu)
|
13th March, 2025
Budapest home rental rates fall
Home rental prices in Hungary rose by just 0.2% month-on-month in February but shrank by 0.4% in Budapest, according to the latest KSH-ingatlan.com rent index.
Rental rates were 8.6% higher, year-on-year, nationwide and rose by 8% in the capital city.
The corresponding figures have risen by 117% and 105% respectively since the launch of the index in 2015.
“The modest decline in Budapest rental prices is primarily attributable to the more expensive Buda districts,” said Ingatlan’s chief economist Laszlo Balogh, adding that outer districts of Pest, with more affordable options, continue to see rising rental costs.
The cooling trend coincides with a substantial increase in rental property supply. Budapest’s available rental inventory has expanded by 21% in the preceding 12 months to nearly 11,000 units.
The 13th District leads with almost 1,500 properties available for rent, a 50% year-on-year increase.
The average rent in Budapest last month was Ft 250,000, unchanged from a year earlier.
Monthly rates in Debrecen were up 15% year-on-year to Ft 230,000, despite a 116% increase in supply.
The number of homes available for rent grew by 31% in Gyor, as the average home rental rate rose by 6% to Ft 191,000.
The lowest monthly rates were registered in Miskolc, Bekescsaba, Szolnok and Salgotarjan, at around Ft 125,000. (portfolio.hu; economx.hu; piacesprofit.hu; profline.hu; hirklikk.hu; hirado.hu)
|
13th March, 2025
Hungary joins push for relief for EU chemical industry
Hungary, alongside seven other EU member states, is urging the European Commission to ease overly stringent rules on critical chemical materials to enhance the European chemical industry’s competitiveness, Portfolio writes.
The proposal, which seeks to reduce bureaucracy and hasten approval of new products, was submitted ahead of the March 12 meeting of the EU Competitiveness Council.
The joint declaration, led by France and supported by Italy, Spain, Hungary, the Czech Republic, the Netherlands, Romania and Slovakia, calls for the creation of a “Critical Chemicals Act,” modelled after the recently adopted Critical Raw Materials Act.
The declaration highlights the need to identify and prioritise strategically important chemical materials essential for the performance of key European industries.
The EU is the world’s second-largest chemical producer after China, but productivity fell by 12% between 2019 and 2023.
According to the European Chemical Industry Council report, the sector generated profits of euro 108.5 billion in France alone and euro 6.5 billion in Hungary in 2024, despite facing persistent competitiveness challenges since the pandemic. (portfolio.hu)
|
13th March, 2025
Dietary supplement producer completes Ft 5bn upgrade
BioTechUSA, one of Europe’s largest manufacturers of dietary supplements and specialty foods, has carried out a Ft 5.5 billion upgrade at its production hub in Szada, Pest county as part of a broader Ft 9 billion investment programme, the largest in the company’s history.
Testing is underway at the new facility, with full-scale production expected to begin in September.
The investment includes the installation of a highly automated production line for multi-layered protein bars, which will triple the company’s annual bar production capacity to 75 million units.
Solar panels installed at the Szada facility will cover 30% of the plant’s electricity needs.
The company has invested more than 5% of its revenue in operational development while launching 25 new products and opening 20 new stores last year.
It also expanded its global footprint to 103 countries and signed what it describes as a “unique regional co-operation agreement” with the Barcelona football club.
BioTechUSA’s manufacturing and logistics centres in Szada and Dunakeszi span 45,000m2 with storage capacity for 24,000 pallets, producing 20,000 tons of powder products and one billion capsules and tablets annually, in addition to the protein bars.
The company reported a record Ft 93.7 billion in revenue last year, up 3.5% from 2023, with 83% of income coming from exports.
The company currently operates in more than 100 countries through 49 webshops and 327 franchise stores, employing 1,900 people worldwide. (portfolio.hu; vg.hu; economx.hu)
|
13th March, 2025
Lidl warns cap on margins is unsustainable
Food retail chain Lidl has warned that the government’s plan to cap profit margins at 10% on 30 essential food products is economically unviable, adding that the company has never had high profit margins.
Prime Minister Viktor Orban has announced that the government will introduce the measures from mid-March until the end of May for companies with Ft 1 billion in annual revenue after the February inflation data showed food inflation rose to 7%.
“We have never used a high margin before, with the 10% percent ceiling and after deducting the special commercial tax, even the personnel costs are not recovered, so the offer fundamentally goes beyond economic reality”, Lidl’s communications director Judit Tozser responded to Forbes.
She said Lidl had previously engaged in discussions with the Economic Ministry and offered to apply below-market margins on certain product categories to help offset last year’s price increases that followed the end of government-imposed price caps.
In his video message, the prime minister dismissed this as insufficient, opting instead for legislative intervention to curb what he called “unjustified and excessive price hikes”, Forbes adds. (forbes.hu)
|
13th March, 2025
Leadership change at insurance association
The Hungarian Insurance Companies Association (Mabisz) has appointed Bence Hollo as its new president following a leadership election on Wednesday.
Hollo, who serves as chief executive of NN Biztosito, takes over from Mihaly Erdos, who had previously announced he would not seek re-election to the position.
The association’s newly formed eight-member executive board also selected Peter Zatyko, CEO of Alfa Vienna Insurance Group, to serve as vice-president. (portfolio.hu)
|
13th March, 2025
MBH bullish on Magyar Telekom
MBH Bank has raised its 12-month target price for Magyar Telekom shares to Ft 1,898, representing a 17% upside from current levels, while maintaining a “buy” recommendation.
The telecoms group is shifting its growth strategy away from subscriber expansion towards higher average revenue per user (ARPU), according to MBH analysts.
The company’s revised dividend policy, which allows for up to 100% of adjusted net profit to be distributed through dividends and share buybacks, is also expected to enhance shareholder returns.
The company’s financial outlook has improved as special sector taxes are phased out and inflation-linked price adjustments help stabilise revenues.
The planned spin-off of mobile infrastructure could yield euro 700 million in revenue, equivalent to 21% of Magyar Telekom’s current market capitalisation, but this will be leased back.
The company’s share price has risen by 28% this year alone. (portfolio.hu)
|
13th March, 2025
Mystery illness strikes Nagykoros
Hundreds of people have fallen ill in Nagykoros, Pest county in recent days, HVG reports.
It is not known for the time being what caused the illnesses as the authorities have not yet completed their tests.
Symptoms include vomiting, diarrhoea and abdominal pain.
Five children who were hospitalised due to dehydration have been released.
The national food safety authority Nebih took the necessary steps in the affected institutions, including ordering a major disinfection clean-up, which also extended to the kitchen facilities.
An investigation into the incident is currently underway.
Caterer Eatrend, which provides meals to the public in the town, said a virus has appeared in several points of the country, as well as in Nagykoros.
It said the food samples examined by the food safety authority are negative. (hvg.hu; 24.hu; 444.hu; economx.hu; nepszava.hu; telex.hu)
|
13th March, 2025
Drug raid nets eight dealers
More than 150 police officers detained eight drug dealers and 33 drug users at 36 locations in raids in Pest county in recent days.
Four of the dealers were taken into custody, police said.
Pest county police officers searched for illicit drugs in 23 night spots and 13 other locations, impounding nearly 1.5 kilograms of drugs and more than Ft 600,000 in three days, coming from drug trafficking.
A Debrecen night spot had to close early, as police searched everybody on the premises.
Although the government passed one of Europe’s most stringent drug laws in 2012, the drug situation has not improved since then, Telex writes.
Five years after the drugs should have disappeared from the country, according to the government’s promise, the drug problem assumed such high proportions that the prime minister could not ignore it in his speech on February 28.
Fidesz MP Laszlo Horvath was recently given the newly created position of government commissioner against drugs. (telex.hu; police.hu; magyarnemzet.hu; 24.hu; hirado.hu)
|
13th March, 2025
Man falls to his death at museum
A middle-aged man plunged to his death from the roof of the Museum of Ethnography shortly after noon on Wednesday.
He sustained such severe injuries that he died at the scene.
Police have ruled out foul play. (origo.hu; hvg.hu; 444.hu)
|
|
|
|
Contact