Hungary's Bold Economic Revival: Support for Restaurants & Households

Hungary's government unveiled a $300 million package to support restaurants and cover extra heating costs for households in January. Prime Minister Viktor Orban aims to boost his re-election campaign by addressing economic challenges, including rising living costs, despite inflation easing. Support measures include tax cuts and subsidies.

Hungary is taking decisive economic action as the government, led by Prime Minister Viktor Orban, announced a significant financial package aimed at boosting the country's struggling restaurant industry and assisting households with heating costs during January's freezing temperatures.

The move comes ahead of a critical election, with Orban's Fidesz party trailing the opposition led by Tisza. The government is focused on economic revival strategies, particularly as the cost of living has emerged as a top concern for Hungarians despite a drop in inflation rates.

Among the measures are liquidity support for restaurants, a cut in tourism taxes, and waivers on entertainment-related levies. Additionally, nearly 10,000 restaurants can treat a portion of their revenue as a service fee to reduce taxes. Caps on utility bills and other supports are also part of Orban's strategy to regain voter confidence.

(With inputs from agencies.)