Hungary extends interest rate freeze

We support European cooperation rather than a United States of Europe, and I believe that federalist attempts are particularly harmful. This does not mean, however, that there is no alternative to the common market for Hungary.

While it is in Hungary's interest to be a member of the European Union, it is also in Hungary's interest for the EU not to function as it does now,

said Gulyás.

When asked whether Fidesz is considering holding a referendum on Ukraine's accession to the EU on the same day as the 2026 elections, similar to the one held in 2022 on child protection issues, Gulyás said that there are no plans to do so.

'In my opinion, the judgement should be appealed. I consider it to be legally incorrect,' said Gergely Gulyás in response to the court granting immediate legal protection to the capital, meaning that the HUF 10.2 billion previously collected by the State Treasury should be returned.

"We will start mailing food vouchers to pensioners by the beginning of September at the latest. We are working to ensure that these vouchers can be spent on a wide range of products," said the minister. He added that he now understands that the HUF 30,000 voucher will be usable for a large proportion of products available in grocery stores.

Each time prices rose, we carefully assessed the situation before making a decision. These interventions are unfortunate but unavoidable.

I would like to see this avoided in the case of fuel, but if not, the government will negotiate with Mol,

Gulyás said, referring to the price rises expected due to the Iran-Israel war.

According to fuel price tracking site holtankoljak.hu, Mol will raise the wholesale gross list price of petrol by HUF 4 per litre and that of diesel by HUF 9 per litre on Thursday (19 June).

The Minister stressed that if the European Council adopts the proposal to ban Russian energy imports, Hungary will respond. In response to a question, he added that they could appeal to the European Court of Justice, but they have 'no serious illusions' about the outcome, so they are considering other options.

"Tomorrow, we will meet with the Mayor of Budapest, Gergely Karácsony. The government has made it clear that the operation of the capital is not a party-political issue and that the city must be managed. We are available and happy to help Budapest. Gergely Karácsony has accepted our requests," Gulyás said, speaking about the negotiations on the capital's financial situation.

According to Gulyás, the decision was not about the legality of the solidarity contribution, but rather about the fact that the money cannot be taken away until September (in the first instance, not legally binding). When asked whether the money would be returned, Gulyás said that the court rulings must be respected. The lawsuit concerns the timing of the payment. Gulyás said that tax obligations must be met.

On Monday, Karácsony announced that the city would organise the LGBTQ community's Pride march on 28 June as a municipal event celebrating freedom. This move is intended to circumvent a law that allows the police to ban LGBTQ marches.

In March, Hungary’s parliament, in which Prime Minister Viktor Orbán's right-wing Fidesz Party holds a legislative majority, passed legislation that creates a legal basis to ban LGBTQ+ marches, citing the need to protect children. The legislation also allows the police to use facial recognition cameras to identify attendees who may be fined for up to HUF 200,000.

The mayor added that since the march will be a municipal event - a celebration of freedom - "no permits from authorities are needed."

Karácsony said Budapest's history was about freedom and solidarity.

In this city, there are no first- or second-class citizens. In this city we know that we can only be free together. So in this city, neither freedom, nor love can be banned, and the Budapest Pride cannot be banned either,

Reuters cited him as saying.

When asked about Pride, Gulyás said that the capital is trying to play tricks. However, since an official notification is required, the police have published a statement and are correctly interpreting the legal rules on assembly. The Karácsony administration is trying to avoid this illegally. The minister said that all events falling under this must be reported, and that the police can ban them. He added that no lawyer would contradict this and that previous decisions of the Constitutional Court support this view.

The government has decided to maintain the interest rate freeze,

which currently affects approximately 286,000 loans totalling HUF 1,200 billion. We believe that households should not be affected by a 15% increase in repayments, which will cost banks around HUF 55 billion this year and HUF 50 billion next year.

The government is extending the measure for another six months, until the end of December.

Retailers have denounced Hungary for the margin cap, and Brussels has launched infringement proceedings against Hungary, the minister commented on today's news. He stressed that the government is resisting the pressure and will uphold the measures.

At today's meeting, the government discussed the European Commission's country report. Gergely Gulyás said that it is not only biased, but that its findings and proposals are also unacceptable. However, he added that the even Commission acknowledges the achievements of Hungarian economic policy.