European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

EU PolicyWatch

Database of national-level policy measures

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-2023-1/3103 – Updated – measures in Hungary

Subsidy for small village shops

A falusi kisboltok támogatása

Country Hungary , applies nationwide
Time period Temporary, 01 January 2023 – 31 July 2023
Context War in Ukraine, Cost of Living Crisis
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial) or damage compensation
Author Nóra Krokovay (KOPINT-Tárki) and Eurofound
Measure added 20 February 2023 (updated 29 November 2023)

Background information

Under government resolution 1539/2022 published in November 2022 under the Modern Villages Programme, as of 12 January 2023 village shops can apply for support for their operating costs.

According to the government, the measure was issued in response to the impact of price caps, in place since early 2022. Often small village shops sell the items under the price cap scheme in larger proportions which means they are more in need of compensation than city shops.

Content of measure

The 2023 budget allocated HUF 8 billion (€19.91 million) for the support scheme. The amount of aid available is between HUF 1 million and HUF 3 million (€2,632-7,895) per shop. This money is provided in a one-off, lump-sum that is 100% pre-financed, non-repayable and non-reimbursable. Operating costs, such as the wages of the shop's employees, employer's contributions, rent and overhead costs are eligible to be covered. The application must be submitted electronically. In his statement, Alpár Gyopáros said all shop owners who sell daily consumer goods and basic foodstuffs in settlements with less than 2,000 inhabitants can apply for operating subsidies.

Updates

The following updates to this measure have been made after it came into effect.

12 January 2023

12 Jan 2023 – The subsidy was reopened for 2023 as part of the Hungarian Village Programme. Applications for grants of HUF 1-3 million (€2,703-8,108) for utility bill costs are received from 12 to 31 January. The funding period is 1 August 2022 – 31 July 2023, the National Chamber of Agriculture (NAK) reported.

Use of measure

According to a list of subsidy winners 2,806 shops were awarded by July 2023. A total of HUF 7,567,045,261 (€19.91 million) was awarded.

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
Other businesses
Does not apply to citizens

Actors and funding

Actors Funding
National government
Company / Companies
National funds

Social partners

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

Trade unions Employers' organisations
Role No involvement Consulted
Form Not applicable Direct consultation outside a formal body

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

  • Only employers' organisations
  • Main level of involvement: Sectoral or branch level

Involvement

Zoltán Szőke, head of employers’ organisation ÁFEOSZ, initiated the subsidy and the proposal went through.

Views and reactions

Unknown.

Sectors and occupations

This case is not occupation-specific.

Sources

  • 14 November 2022: Govt resolution 1539/2022 on subsidies for village shops (njt.hu)
  • 15 November 2022: Small village shop subsidies in pipeline (bankmonitor.hu)
  • 13 January 2023: Village shop utilities subsidy reopens in Jan 2023 (www.nak.hu)
  • 05 August 2023: Winners of the small village shops subsidy programm (magyarfaluprogram.hu)

Citation

Eurofound (2023), Subsidy for small village shops, measure HU-2023-1/3103 (measures in Hungary), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/HU-2023-1_3103.html

Share

Eurofound publications based on EU PolicyWatch

30 January 2023

 

Measures to lessen the impact of the inflation and energy crisis on citizens

Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.

Article

12 September 2022

 

First responses to cushion the impact of inflation on citizens

Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.

Article

12 September 2022

 

Policies to support EU companies affected by the war in Ukraine

This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.

Article

5 July 2022

 

Policies to support refugees from Ukraine

This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.

Article

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.