Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure HU-2022-40/2961 – Updated – measures in Hungary
|Hungary , applies nationwide
|Temporary, 01 October 2022 – 31 December 2025
|War in Ukraine, Green Transition, Restructuring Support Instruments
|Legislations or other statutory regulations
Supporting businesses to stay afloat
– Direct subsidies (full or partial) or damage compensation
|Nóra Krokovay (KOPINT-Tárki) and Eurofound
|26 October 2022 (updated 29 November 2023)
The war in Ukraine and the resulting economic countermeasures have led to an explosion of energy prices. This jeopardises the viability and competitiveness of energy-intensive manufacturing enterprises.
In response, the government is offering non-repayable subsidies for the affected SMEs to ensure they continue operating and can retain their existing workforce. As laid out in government resolution 1477/2022, the subsidy is primarily provided to cover part of increased energy costs. Furthermore, the enterprises can apply for an additional subsidy to support energy-efficiency enhancing investments.
The first part of the programme covers an expected energy cost increase for October, November and December 2022. The second part of the programme is a capital subsidy to co-finance a credit-supported energy efficiency investment. Only beneficiaries of the first part can apply for the second one.
Eligible SMEs must:
The first part of the subsidy amounts to 50% of the total increase of energy costs in the three months. The second part of the subsidy cannot exceed 15% of the total net cost of the energy-efficiency investment.
The maximum amount of the subsidy is €500,000 – or €200,000 if requested as de minimis subsidy. The total amount allocated is roughly €240 million for the first quarter of 2023.
Based on a list of subsidies registered by 16 June 2023, the number of beneficiaries was 663. This number includes 611 beneficiaries from the manufacturing sector and 52 companies operating in the tourism/catering sector. By 27 October 2023 a refreshed list shows 696 beneficiaries in 1,235 applications (one company could apply several times) requesting altogether HUF 9.91 billion (€26.08 million) in subsidies in the manufacturing sector. The number of applicants in the tourism sector was 136 with a requested amount of HUF 910.95 million (€2.4 million).
|Does not apply to workers
Sector specific set of companies
|Does not apply to citizens
Social partners' role in designing the measure and form of involvement:
|Direct consultation outside a formal body
Social partners' role in the implementation, monitoring and assessment phase:
The government held meetings with employer organisations when preparing changes in the subsidy programme at the end of 2022. In January 2023, it formally set up a consultation forum called Consultation Forum for Economic Chambers and employers, with VOSZ, the Confederation of Hungarian Employers and Industrialists MGYOSZ, Construction industry EO ÉVOSZ, the Hungarian Chamber of Commerce MKIK and the German and US Chambers of Commerce as members. The forum discussed the subsidy programme and proposals were heard and incorporated, portfolio.hu reported. The Business Development Council (Vállalkozásfejlesztési Tanács), of which the LIGA Trade Union is a member, addressed the programme and a draft was presented for comments.
In September 2022, the Association of Entrepreneurs and Employers (VOSZ) proposed that the government should expand the programme to every sector because the energy crisis would hit the whole economy. The construction, services, tourism and catering sectors would be hit especially hard, a VOSZ proposal said, claiming that these sectors are responsible for the majority of employment.
|Sector (NACE level 2)
|C - Manufacturing
|C10 Manufacture of food products
|C11 Manufacture of beverages
|C12 Manufacture of tobacco products
|C13 Manufacture of textiles
|C14 Manufacture of wearing apparel
|C15 Manufacture of leather and related products
|C16 Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials
|C17 Manufacture of paper and paper products
|C18 Printing and reproduction of recorded media
|C19 Manufacture of coke and refined petroleum products
|C20 Manufacture of chemicals and chemical products
|C21 Manufacture of basic pharmaceutical products and pharmaceutical preparations
|C22 Manufacture of rubber and plastic products
|C23 Manufacture of other non-metallic mineral products
|C24 Manufacture of basic metals
|C25 Manufacture of fabricated metal products, except machinery and equipment
|C26 Manufacture of computer, electronic and optical products
|C27 Manufacture of electrical equipment
|C28 Manufacture of machinery and equipment n.e.c.
|C29 Manufacture of motor vehicles, trailers and semi-trailers
This case is not occupation-specific.
Eurofound (2022), Energy cost and investment subsidy programme for energy intensive SMEs, measure HU-2022-40/2961 (measures in Hungary), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/HU-2022-40_2961.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.