Brussels says high energy prices are beneficial, as families are forced to save because of unaffordable utility bills.

The European Commission may initiate proceedings against Hungary and other member states, as the public budget deficit exceeds 3 percent. The procedure will have no consequences, as the deficit will again fall below the expected level in 2026. Brussels is still hurt the most by utility cuts.

Brussels once again called on Hungary to immediately end the utility reduction. country-specific recommendation of the European Commission Mandiner pointed out .

Brussels warned that, according to EU recommendations, the most important step would be the complete elimination of state-regulated, discounted electricity and natural gas prices

in order for the budget deficit to fall below 3 percent as soon as possible. According to the committee, utility reduction could only be re-introduced if world market prices rise significantly again, in this case only in the most vulnerable households.

The medium-term debt reduction plan of the Hungarian government is recognized in Brussels, but they complain that it does not comply with the EU recommendations, i.e. that

reducing the deficit below 3 percent would be accelerated by the rescheduling of public investments, not by the elimination of utility cuts.

In the country-specific report just published, the committee specifically mentions that the deficit will decrease already in 2024, partly precisely because the reduction in overheads, i.e. the price compensation to be paid to utilities, will cost the budget less due to lower world market prices.

The committee also attacks the utility reduction because, in their opinion, lower prices give less incentive to the population to save energy and be more energy efficient. It means that

According to Brussels, high energy prices are beneficial, as families are forced to save due to unaffordable utility bills,

thereby covering up the harmful consequences of the sanctions imposed on Russian energy carriers and the growing vulnerability of the EU.

The European Commission is expected to initiate the excessive deficit procedure against Hungary and several other member states in July. This is not expected to have any consequences for our country, as there is no punishment yet in the first stage of the procedure.

And the procedure is not expected to enter the next stage, as the medium-term debt reduction efforts of the Hungarian government were also recognized in Brussels, i.e. the state budget deficit will fall below 3 percent in 2026.

Photo: MTI