Hungarian Villages Program Expands, Pensions Increase +Video

Important announcements were made at the weekly government press briefing. Here are the details!

Government press briefing (Photo: Balazs Ladoczki)

The government has made several important decisions regarding villages and small settlements, Alpar Gyoparos, the government commissioner for the Hungarian Villages Program, said at a weekly government press briefing. This is hardly surprising, he said, recalling that Prime Minister Viktor Orban announced the Hungarian Villages Program in 2018, and over the past six years, the government has implemented numerous developments in villages at the request of residents in small settlements.

The Hungarian Village Program is written by the villages,

the government commissioner said, highlighting that listening to the needs of the people has led to the addition of four new elements to the program. Two of them are being restarted, while two are entirely new.

The first element is support for village shops, which was already in place in 2021 and 2023. This year, shops in settlements with fewer than five thousand residents can apply for operational support, such as covering utility and wage costs, provided they sell daily consumer goods and meat. The grant amount ranges from a minimum of one million forints to a maximum of three million forints.

Photo: Balazs Ladoczki

The government commissioner also announced that in order to ensure access to cash, the government is launching a program this year

to have ATMs in every settlement.

The church renovation program will be relaunched offering opportunities for 2900 small settlements to renovate hundreds of church buildings. 

He also announced support for pubs in settlements with fewer than 1,000 residents. A total of three million forints can be applied for as operational support, as well as for energy efficiency improvements and renovations.

Alpar Gyoparos is confident that there will be demand for these four programs. Additionally, applications can be submitted 

for street and sidewalk renovations.

In response to a question, Alpar Gyoparos stated that there are approximate budget limits for the grants, but if interest is high, they are ready to expand the budget.

Regarding church renovations, he clarified that the support applies to churches of all denominations. He emphasized that even settlements with fewer than 100 residents are eligible to apply, and the same applies to ATMs. "The most effective solution is for the operator to cover the installation costs of the ATMs, and these costs should not be passed on to residents," he added. He also noted that ensuring equal conditions is key, not just access to cash. In places where there is a lack of market services, the village caretaker service helps with the procurement of food and medicine.

Regarding pubs, he mentioned that these establishments were almost the only missing elements in the Hungarian Village Program, while libraries have been eligible for support for six years. He emphasized that pubs serve as gathering points where locals discuss community matters. "After renovating the school, kindergarten, and church, perhaps it is worth focusing on pubs as well," he pointed out.

The support for small shops is primarily aimed at ensuring their survival. They are at a competitive disadvantage compared to multinational chains, and they also serve as gathering places and community spaces, but the main goal is to ensure local access to essential goods, Alpar Gyoparos stressed.

Photo: Balazs Ladoczki

Pensions and food prices

Yesterday, the new governor of the Hungarian National Bank presented to the government the central bank's forecasts and the processes behind the figures, said Gergely Gulyas, the minister heading the Prime Minister's Office. He said that the government calculates with average annual inflation of 4.5 percent and since prices are expected to rise at the same rate, 

a supplementary pension increase will be implemented.

Based on the 4.5 percent inflation rate, the average pension increase in November and December will translate as nearly forty thousand forints.

He indicated that due to price reduction measures, inflation is expected to decrease. Capping the markups of some basic foods has been effective, with prices dropping for 874 products. Some products, such as cold cuts, margarine, and milk, have seen price reductions exceeding 30 percent.

Gergely Gulyas stated that the government is prepared to take further measures if necessary. The message to retailers is that a 10 percent margin should be sufficient, meaning they can only add that much to supplier prices.

Some stores are trying to compensate by increasing the prices of other products, so authorities are  monitoring the situation, the minister said in response to a journalist's question. "More than 800 products have seen price reductions, while only a few have increased so far, but if we see retailers shifting the burden onto consumers through cross-pricing, we will take action," emphasized Gergely Gulyas.

Commenting on protesters blocking bridges in the capital, the minister emphasized that the right to assembly should not infringe on the rights and freedoms of others. "In this case, a few hundred people made it impossible for hundreds of thousands to travel in the city," he added. Lawmakers are ready to respond to this situation, he noted, adding that before amending the law, they will study the court decision on the bridge blockade case.

Regarding Kriszta Bodis, a gender activist, being appointed to the board of the capital's social foundation, he said that Peter Magyar needed the support of Ferenc Gyurcsany of the opposition Democratic Coalition and Mayor Gergely Karacsony along with their circles to achieve this. The minister pointed out that the rainbow flag is fundamentally a Christian symbol, and its current usage may rightfully offend Christians.

The return of Traubi

Government spokesperson Eszter Vitalyos recalled that this week, MPs of the  Fidesz and the Christian Democrats (KDNP) submitted an independent proposal regarding the full income tax exemption for mothers under 30, as well as the exemption of infant care, child care and adoption benefits from income tax.

Over the past few weeks, investments worth more than 16 billion forints have been made in Hungary, including 5.3 billion forints in the economic sector, the spokeswoman stated.

The production of the Hungarian soft drink  Traubisoda has restarted in Felsoaljos with 

Marka Uditogyarto Kft. carrying out a greenfield investment on a six-hectare site.

In Kiszombor, the renovation of the service house has been completed. The EU-funded 511 million forint development aims to provide space and infrastructure for local businesses while serving as a community center for residents.

She also mentioned that in Dunakeszi, a new incubator house was opened with 400 million forints in Top Plus support to help local businesses start and grow. In Ujhartyan, the Hungarian-owned Start Plast Kft. expanded its factory with an investment of 1.4 billion forints.

Photo: Balazs Ladoczki

Gergely Gulyas highlighted that 17 thousand people have already applied for workers' loan, and around 15 thousand applicants have received the loan. Regarding family support measures, he stated that they aim for Hungary to be the world's best example of family support, and they will continue to pursue this policy as long as possible.

In response to a question, the minister also touched on Ukraine's situation. Gergely Gulyas emphasized that Ukraine's EU accession would cost every Hungarian millions of forints, and many unanswered questions remain, including defining the territorial unit that would join the EU, given that the country is at war. He stated that official assessments show Ukraine is not ready for accession. For decades we have been talking about merit-based accession, but now they would force a country into the union that is not prepared. This is absurd. There are many unanswered questions regarding agriculture, the labor market, and in the area of ​​cohesion, he pointed out. Regarding the planned EU borrowing, he said there are two types of joint borrowing: one that falls within the maximum budget framework, which does not require Hungary's consent, and all other cases, which do. "We do not support any other borrowing," Gergely Gulyas stated.

Photo: Balazs Ladoczki

 

Asset declarations, LGBTQ district

In response to Magyar Nemzet's question, Gergely Gulyas addressed a proposal that would require MEPs to submit asset declarations under the same rules as Hungarian MPs. This could particularly affect Peter Magyar, as he was outraged by the proposal. The minister pointed out that even the European Commission is encouraging the government to conduct an investigation. He believes that the EU itself considers the asset declaration system problematic and that the role of the left-wing press in this matter is significant. "It is not fair to engage in this debate without acknowledging that the Hungarian system imposes the broadest possible disclosure obligations on those concerned," he pointed out, adding that the government intends to apply the same rules to Hungarian MEPs as to MPs to ensure consistency.

When asked about the incidents involving journalists during Tuesday’s protest, the minister said that if the press feels the need for legal protection, they should indicate it, and "let’s discuss it." Regarding Budapest Mayor Gergely Karacsony’s idea of creating an LGBTQ district in the capital, he remarked that he does not know what that would entail. As he put it, he does not envy those who would live in such a place. "What people do within four walls is nobody’s business. Congratulations to the mayor on his taste," he added.

Cover photo: Government press briefing (Photo: Balazs Ladoczki)