Gergely Gulyás, the minister in charge of the Prime Minister's Office, held a government briefing on Thursday morning, where he announced that the government is announcing a firewood and brown coal program. In addition, several important government decisions were announced.
Gergely Gulyás, the minister in charge of the Prime Minister's Office, said: The government assessed the current economic and energy situation at its meeting on Wednesday.
The energy supply is causing major issues throughout the continent, prices have skyrocketed and sanctions are clearly not working. The main cause of the energy crisis is the lack and price of natural gas. Hungary is less affected by this, but it causes huge problems in several European countries.
The government decided at yesterday's meeting that
with the exception of hospitals and residential institutions, a 25 percent gas reduction is imposed on state bodies and state-owned companies.
It is up to the ministries to develop solutions for this.
In terms of the population, the largest support system is in Hungary. This means that if you were to buy gas at the market price today, it would cost HUF 180,000 for average consumption, while it would cost about HUF 25,000, so the government provides a subsidy of around HUF 150,000 per month to help families.
Despite this, they ask everyone to use gas sensibly, because of this
the government announces a firewood and brown coal program.
Starting next week, you will not only be able to buy wood at the fire station, but also directly at the forest farms. The government introduces an official price for this.
Pick-up locations will also be designated soon, and
everyone will be provided with at least 10 cubic meters of wood until the beginning of the heating season.
In the case of brown coal, there is a state right of first refusal. Production can be increased from 50,000 tons to 280,000 tons, the government will take the necessary steps for this.
The government is developing a special program to help energy-intensive small and medium-sized enterprises in order to protect jobs.
Regarding district heating, the minister stated: the prices for residential consumers will not change, and the government is launching a program to ensure that every apartment has its own meter. The amount required for this will be paid by the industrial players, and the program itself will last at least 4-5 years.
Regarding the negotiations in Brussels, Gergely Gulyás said: First, I would like to conclude the conditionality procedure, this is a common interest,
Hungary agreed with the committee on all issues.
The minister asked the Hungarian left-wing MEPs to end their work delaying the disbursement of funds.
The government also decided on a new government bond strategy, which means that the yield of some government bonds will be raised and new ones will be issued.
The starting interest rate of the new government bond is about 11 percent, which is the highest yield on the market and will be released in September.
In response to a journalist's question that the government will provide everyone with at least 10 cubic meters of firewood, Gergely Gulyás detailed the conditions for purchasing firewood from forest farms.
The minister said: the firewood campaign for the forest farms will start next Thursday and will certainly last until the end of the heating season. After consultation with the Ministry of Agriculture and the forest farms, the government came to the conclusion that there is plenty of wood stockpiled at the forest farms, so there will be no shortage of firewood. And logs are significantly cheaper than if someone were to buy firewood at a fire station.
Gergely Gulyás emphasized that the government is introducing an official price so that the price of firewood "does not rise too much" due to the expected increase in demand.
In response to the question regarding the practical implementation of the 25 percent reduction in gas consumption to be introduced at government and public institutions, the minister explained: they do not support home office work at the Prime Minister's Office, as all employees are needed. It is recommended to maintain a constant temperature of 18 degrees Celsius everywhere in public institutions and state institutions - with the exception of hospitals and care institutions.
Everywhere they are trying to take back the amount of gas used in such a way that they can ensure this temperature of 18 degrees Celsius, the minister emphasized.
Gergely Gulyás explained in relation to the increased gas bills of the municipalities that they are negotiating with the municipalities. The first task is for the settlements to try to manage themselves, the goal is for the kindergartens and schools to function. If necessary, the government helps the settlements.
There will not be many EU member states that will be able to help Ukraine
In response to a journalist's question, Gergelyt Gulyás also spoke about Ukraine's economic situation on Government Info. In this regard, the minister said that it is not clear how Ukraine will get back on its feet. However, the problem is that due to the terrible damage caused by the sanctions, there will not be many EU member states that will be able to help.
9 billion euros per month would be needed to support Ukraine, the minister noted.
The minister said about the Hungarian left-wing members of the European Parliament that
while there is a terrible inflation in Europe, the Hungarian left-wing members of the European Parliament will do everything to prevent Hungary from receiving EU funds, the minister pointed out.
Left-wing campaign funds - if someone receives money from abroad, it is inevitable that they also represent foreign interests
Gergely Gulyás told the question about left-wing campaign funds that it is a serious violation of the law if the left actually received campaign funds from abroad, and this must be investigated, because if someone receives money from abroad, it is inevitable that they also represent foreign interests.
The minister believed that it was an obvious provocation that Mi Hazánk inaugurated a Horthy statue in the parliament, but drew attention to the controversial assessment of the former governor's personality. Gergely Gulyás said that it is worth reading the statements of József Antall, the first prime minister after the regime change.
Regarding the V4, he said that although all participating countries benefit from it, the engine of cooperation is the Polish-Hungarian axis.
If the parties can accept the disagreement on the Ukrainian situation, then they can make progress, he explained.
Regarding the fertilizer shortage, he said: the entire European fertilizer industry is in crisis.
The price of natural gas accounts for approximately 70 percent of the costs of producing fertilizer. Therefore, as long as the attitude of the Union does not change regarding the sanctions, there will be no cheaper fertilizer.
He added: it is worthwhile to turn to alternative solutions to replace artificial fertilizers, such as organic fertilizers.
The goal is to maintain all programs of family support
The home renovation subsidy expires on December 31, and the government has not yet decided on its extension. The goal is to maintain all programs of family support, the form in which this will be done is not yet visible, since the economic situation next year cannot be predicted.
Gergely Gulyás explained: our country is doing well in terms of natural gas reservoirs. The storage capacity is 65.4 percent. If we consider residential use, it is sufficient for 175 winter days. Including industrial and residential consumption, it means 81 winter days.
About the global minimum tax, Gergely Gulyás said that the European Union cannot accept it without us, since it can only be accepted unanimously.
About the beginning of the academic year, Gergely Gulyás said that teachers will receive a 10 percent salary increase. In this regard, the government is negotiating with the European Union so that the teachers will receive a much higher salary increase.
Approximately 200,000 cubic meters of gas can be saved
In response to Origo's question as to whether a calculation has been made as to how much gas consumption can be reduced as a result of the new measures, Gergely Gulyás said that approximately 200,000 cubic meters of gas can be saved this way. The government is trying to use alternative heating methods in these institutions as soon as possible.
Within two weeks, each ministry must prepare consumption reduction plans.
The basic principle and the government's expectation is that 75 percent of the 2021 consumption can be used in the next heating season at government institutions.
The minister commented on the drastic increase in parking fees implemented by the left-wing city government in Budapest:
"The capital has caused a traffic chaos, which it is now trying to solve with a drastic price increase."
The government will also restart the Mátra power plant
This was also discussed at yesterday's government meeting. A necessary green investment has started, Gergely Gulyás explained: if we receive the funds from the restoration fund, further improvements can be made to the power plant. At the same time, the power plant must be maintained and investments made that make the power plant more environmentally friendly.
In response to a question, Gergely Gulyás clarified that the official pricing will be extended to state timber producers for the time being. This is necessary so that the price of firewood does not go down.
The government aims to build a state-owned cement factory
When asked by the public media that there was a cement shortage in the construction industry, the minister said that the government's goal is to build a state-owned cement factory. The locations are currently being investigated. He noted that if cement production stopped, an entire industry would be in a difficult situation.
The minister expects a difficult winter.
"Hungary is in a much more favorable position than other European countries in that the question is not whether there will be enough electricity and gas, but how much it will cost. In Germany, this question arises as to whether there will be electricity and gas at all"
said the minister. The European economic situation is determined by sanctions, he added.
Source: hirado.hu
Photo: MTI/Zoltán Balogh
