Orban's Economic Relief: Tax Exemptions and Interest Rate Caps

Hungarian Prime Minister Viktor Orban unveiled measures like tax exemptions for mothers and capping housing loan interest rates to stabilize the economy ahead of the 2026 elections, while also considering food pricing controls.

Hungary's Prime Minister Viktor Orban has introduced a new set of economic initiatives aimed at stabilizing the national economy as the 2026 election period approaches. Among the measures is an income tax exemption for mothers with two or three children, seen as an effort to alleviate financial burdens on families.

Additionally, Orban announced a cap on housing loan interest rates at 5% starting from April. This move is intended to make homeownership more affordable in a fluctuating economic climate.

In response to rising food prices, Orban stated that his government is prepared to impose price caps if negotiations with retailers to moderate the prices fall through. As an extreme measure, the government might also consider limiting retailing profits in the food sector to ensure cost stability for consumers.