The price caps on basic foodstuffs and fuel will be extended until the end of the year. The government justified the extraordinary decision with the inflation, which was already over 15% in August. Price caps were initially intended to expire on 1 October.
The interest rate freeze, which actually expires at the end of the year, will also be extended by at least six months.
Hungary’s government has approved a support scheme to protect energy-intensive small and medium-sized businesses (SMEs). The scheme will begin on 1 October and continue through 2023. The initiative supports businesses in terms of operating costs and investments. According to the EU definition, all companies whose energy costs account for more than 3% of their net sales are energy-intensive. The scheme is coordinated by the Ministry of Technology and Industry and the state will cover 50% of the increase in the electricity and gas bills of energy-intensive manufacturing SMEs, specifically for the months of October and December. The government is also launching programs to protect jobs and support investments. Around 10,000 small or mediumsized enterprises are to be funded. The government intends to encourage new investments in large, energy-intensive companies; this is the so-called factory rescue program. An action plan to protect jobs will be presented within a few weeks.