Brussels Takes Aim at Utility Price Cuts Scheme

The latest recommendations from the European Commission demand drastic changes from Hungary — including the abolition of its utility price reduction scheme and the removal of special taxes. Not only economic considerations are implied in the background, but also serious political interests from Brussels and international lobbying. MEP Csaba Domotor explained what could be behind it.

Political interests and international lobbying emerge in the background (Photo: AFP)

Six days ago, the European Commission published its so-called country-specific recommendations, which, in practice, come across as demands on Hungary. The real issue lies in the content of these recommendations. The document states that Hungary should completely abolish its energy price compensation system, essentially ending the utility price cuts scheme. It also suggests that the country should turn away from Eastern energy sources — a proposal that appears as part of the latest sanctions package. However, the Brussels document fails to address who would cover the significantly higher energy prices — clearly, it would be the public and businesses that suffer the most — wrote Csaba Domotor, an MEP for Fidesz, in his post. As Magyar Nemzet reported earlier, the politician had previously criticized the controversy surrounding Peter Magyar's parliamentary immunity.

Brussels takes aim at utility price cuts scheme 
Photo: NurPhoto/Nicolas Economou

Domotor continued by pointing out that anyone familiar with the area around the Berlaymont building in Brussels knows it's one of the main hubs for corporate lobbyists. So it’s no surprise that the recommendations also include a call for

Hungary to eliminate special taxes.

Additionally, the Brussels leadership is recommending that the Hungarian government reduce housing support programs — yet they provide no guidance on how young people would be able to afford homes without them. The the goal of the Commission’s strict fiscal expectations is to free up more financial capacity in EU member states to fund war-related expenditures and aid for Ukraine — all while ensuring multinational corporations benefit the most. Hungary’s domestic politics are not independent of this agenda either. The Tisza Party is visibly aligning itself with Brussels. One of their MEPs, Gabriella Gerzsenyi, even boasted about having worked at the European Commission on proposals aimed at eliminating energy price subsidies.

The party supports not only ending Eastern energy imports but also restrictions on Hungary’s Paks nuclear power plant.

Last November and at the EPP's Valencia congress this March, they voted in support of this direction. Regarding special taxes, Kinga Kollar stated this June that Hungary’s tax policy should be reviewed. Given the Commission’s demands, this likely means tax cuts for multinational companies and heavier burdens on Hungarian families. While the Brussels elite provides them full support — through money, privileges, and political backing — the members of the Tisza Party continue to fall in line. Even if they deny it at home, nearly every decision they make in Brussels confirms that they are ready to carry out whatever is asked of them, Csaba Domotor wrote in his post.

Cover photo: Political interests and international lobbying emerge in the background (Photo: AFP)