New data reveled on Hungary's Home Start Programme

We expect inflation to remain at around 4% for the remainder of the year, before falling below 4% in 2026. In other words, the central bank's inflation target could be achieved next year, according to Gergely Gulyás.

Gergely Gulyás pointed out that the decline in industrial production is primarily due to the downturn in the automotive industry, which is not unique to Hungary but can be seen throughout Europe. Nevertheless, he believes that the economy will strengthen in the second half of the year.

Although there will be no changes to the eligibility criteria, there are cases that justify opening the door even wider in certain specific areas. This does not mean millions more people will be eligible, but it will primarily respond to individual life situations. Gulyás reiterated that the relevant amendments will be announced tomorrow by State Secretary Miklós Panyi.

The government discussed the draft tax laws in their first reading, and Gulyás said that Economy Minister Márton Nagy will provide information within a few days. He revealed that several tax changes are planned to make life easier for businesses, some of which will involve simplification.

The Home Start Programme ties up so much capacity in the construction industry that it would be better to wait with a home renovation subsidy programme for the time being, so we are holding off on it, Gulyás said. He added that if they were to launch such a programme now, it would lead to significant price increases due to capacity shortages. The renovation subsidy programme was already discussed in the summer.

"The government's position has remained unchanged for some time. Our interest lies in diversification, so we are pleased if the Adria pipeline's capacity is sufficient to supply Slovakia and Hungary," said Gulyás, speaking about the replacement of Russian oil. He believes that it is important not to replace one dependency with another, and that it is therefore worth retaining the option of purchasing Russian oil.

The government has approved a housing support programme proposed by the Minister of the Interior. "We expect to spend around 10 billion forints on this programme next year, which will provide meaningful assistance to police officers serving in Budapest," said Gulyás. According to the Minister heading the Prime Minister's Office, the Minister of the Interior will announce the details of the programme shortly.

In its current form, the seven-year EU budget (Multiannual Financial Framework or MFF) is not acceptable; fundamental changes are needed to reach full agreement, said Gulyás. He added that this will be a lengthy process and that the final proposal may not be presented to the member states until 2027.

At the government meeting, the possibility of raising the minimum wage was also discussed, with the Economy Ministry being tasked with coordinating negotiations between employers and employees. Gulyás emphasised that the government's goal is to raise the minimum wage as much as possible, and that if the parties agree, the government will accept it.

The government received a summary of the Otthon Start (Home Start) Programme and made some decisions. These will be announced tomorrow by State Secretary Miklós Panyi.

"The government considers kick-starting lending a priority," said Gergely Gulyás. According to him, interest in the programme remains high, with an average loan application amounting to HUF 33 million, totalling HUF 380–400 billion so far. Over 80% of applicants are under 40 years of age, and applications are distributed proportionally across the country. Over 10% of applications are for newly built homes.

The minister added that the rise in rents has slowed as a result of Home Start.