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-2023-18/3201 – Updated – measures in Hungary
Country | Hungary , applies nationwide |
Time period | Open ended, started on 01 May 2023 |
Context | Green Transition, Cost of Living Crisis |
Type | Legislations or other statutory regulations |
Category |
Promoting the economic, labour market and social recovery into a green future
– Support for other basic items (e.g., food, housing, public transport, medicines) |
Author | Nóra Krokovay (KOPINT-Tárki) and Eurofound |
Measure added | 05 June 2023 (updated 25 April 2024) |
Under government decree 91/2023 (23 March 2023) which regards transport-related law amendments, the government introduced new passes for regional trains and coaches at a flat price. The measure is intended to help people, especially commuters, save money on transportation. This is important in the wake of increased fuel prices and the recent abolishment of the price cap on fuel (in the EU PolicyWatch database) .
The country pass offers unlimited travel on basic train and coach services within Hungary at a cost of HUF 18,900 (€51) a month, while county passes are HUF 9,450 (€25) a month for each of the 19 counties purchased. A country pass is viable for travel through more than one county. Students in standard, full-time education (including university) get a discount of 90% on both types of tickets. The new passes are not valid on some fast trains where a supplementary fare applies. There is a detailed fare-finder page https://www.orszagberlet.hu/ where travellers can read where the new pass is eligible.
Employers who by law (government decree 39/2010) are obligated to refund at least 86% of the cost of transportation to work, may choose to buy one of the new passes for their employees instead to fulfil this obligation.
The following updates to this measure have been made after it came into effect.
01 March 2024 |
Under a new system of tariffs in force from 1 March 2024 and published on the website ujtarifa.hu, the following target groups are able to travel free of charge (previously they had a 90% discount): ethnic Hungarians from neighbouring countries who have the Hungarian Card; children aged 6-14, people living with a disability, pensioners even if under the pension age of 65, minors in state care. Additional changes introduce new, lower priced monthly passes and daily travel cards, regional passes for unlimited travel within a region, etc. which reduce the cost of travel for passengers |
National railways MÁV said the measure could help families save 'tens of thousands of forints' on their monthly transportation cost, if both parents and their children are regularly commuting to their workplace or school. In addition, the discounted passes serve to support 'recreational and family visits', portfolio.hu reports, citing a MÁV statement. Some 360,000 county and country passes were sold by the end of May, a ministry official said, adding that the government aims to 'strengthen public mobility'. The government will compensate the loss of ticket sales revenue to MÁV by HUF 8 billion (€21.05 million) this year, mérce.hu reported. According to the economic news website G7.hu, the new tariffs will cost the state HUF 30 billion (€76.3m) in compensation to be paid to railway and coach companies, which are also state owned, instead of the HUF 1 billion cited by the Ministry for Transport. The state compensation has been raised from 20% of the cost to 53.5% for coach and from 30% to 53.5% for railway travel. Free travel could benefit 900,000 Hungarian Card holders, 280,000 disabled, 1.7 million children and students and about 300,000 pensioners and other beneficiaries.
Workers | Businesses | Citizens |
---|---|---|
Employees in standard employment
|
Does not apply to businesses | Applies to all citizens |
Actors | Funding |
---|---|
National government
|
National funds
|
Social partners' role in designing the measure and form of involvement:
Trade unions | Employers' organisations | |
---|---|---|
Role | No involvement | No involvement |
Form | Not applicable | Not applicable |
Social partners' role in the implementation, monitoring and assessment phase:
The new passes were planned and designed by Lóránd Bói, deputy state secretary at the new Ministry for Construction and Transport, and his colleague, Zsolt Hegyi, who is also deputy CEO of railways MÁV-START, portfolio.hu reported. Asked why social partners were not involved in the planning, Bói said it was not necessary, as the new passes are not replacing any old fares, those are still available.
The Association of Urban and Suburban Transport (VEKE) criticised the measure for failing to incorporate city transport. Head of VEKE, Lajos Dorner said the move was not as professionally-designed as, for example, in Germany, where local transportation was integrated. István Dobi, the head of Solidarity Coach Transport Trade Union (Szolidaritás Autóbusz Közlekedési Szakszervezet - SZAKSZ) said the new passes did not pose problems for the sector, as the state compensation would finance it. János Meleg, head of Vasutasok – Railway Trade Union VSZ, said that train travel dropped by 30% during COVID-19, so the new passes could help reattract customers to rail travel.
This case is sector-specific (only public sector)
Economic area | Sector (NACE level 2) |
---|---|
H - Transportation And Storage | H49 Land transport and transport via pipelines |
This case is not occupation-specific.
Citation
Eurofound (2023), Discount regional public transport passes, measure HU-2023-18/3201 (measures in Hungary), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/HU-2023-18_3201.html
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