Background information

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-refundable 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 programme was originally targeted at manufacturing companies only (See case Energy cost and investment subsidy programme for manufacturing SMEs . It was later broadened to include companies operating in tourism and catering and extended the period of the programme until December 2025. Firms could apply for compensation for the energy cost increase experienced in January, February and March 2023.

Content of measure

The programme includes a capital subsidy to co-finance a credit-supported energy efficiency investment. Eligible SMEs must:

• be primarily involved in manufacturing, tourism or catering
• have an annual energy cost above below 2% of its annual net sales turnover in 2021
• implement an energy efficiency investment by the end of 2024
• not reduce their current workforce by more than 10% until September 2023

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.

Use of measure

Based on a list of subsidies disbursed by 16 June 2023, the total number of beneficiaries was 661. This number includes 609 beneficiaries from the manufacturing sector (See case Energy cost and investment subsidy programme for manufacturing SMEs , and 52 companies operating in the tourism/catering sector.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	SMEs	Does not apply to citizens

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Informed	Consulted
Form	Not applicable	Any other form of consultation, institutionalised (as stable working groups or committees) or informal

Social partners' role in the implementation, monitoring and assessment phase:

• Only employers' organisations
• Main level of involvement: Peak or cross-sectoral level

Involvement

The government held meetings with employer organisations when preparing changes to a preceding subsidy programme in manufacturing only, 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.

Views and reactions

Unknown.

Sectors and occupations

This case is not occupation-specific.

Sources

• 28 September 2022: VOSZ proposals on the energy crisis (vosz.hu)
• 21 November 2022: Ministry: Energy intensive SME subsidy extended (kormany.hu)
• 31 January 2023: New forum to consult on economic policy
• 14 February 2023: Govt resolution 1477/2022 updated (njt.hu)
• 02 June 2023: List of SMEs supported in energy intensive subsidy (vali.hu)