Hungarian Government Considers Interventions in Telecommunications and Banking Fees
In response to rising service charges, the government signals readiness to impose price regulations on banks and telecom providers.
The Hungarian government is monitoring increases in fees across banking, telecommunications, and internet services, indicating potential intervention in these sectors.
According to statements from the Ministry for National Economy, the government is prepared to take steps to keep service costs manageable for households as part of its broader strategy to alleviate financial burdens on consumers.
Recent statements by Minister for National Economy, Márton Nagy, highlighted concerns over the significant rise in bank service fees, which, according to data from the Central Statistical Office, outpaced inflation and transaction fee increases substantially.
In February, fees for financial services rose 13% year-on-year, with cash withdrawal fees increasing by 15% and account maintenance fees surging by 26%.
These escalations are viewed as excessive and unjustifiable by government officials.
To address these concerns, the government has engaged in ongoing discussions with the Banking Association.
The initial move has been to request voluntary price caps from banks and to propose the development of targeted account packages, particularly for seniors and families.
However, initial proposals have not met government satisfaction, prompting further negotiations.
The Ministry reiterated that its objective remains the reduction of household expenses and affordable access to essential goods and services, with the financial sector being a critical focus.
In addition to banking fees, the government is alert to price developments in telecommunications, where prices have also risen significantly in recent months.
The government's monitoring efforts in the telecommunications sector emphasize their readiness to intervene, should it become necessary to ensure fair pricing for consumers.
Regarding food prices, a price margin reduction for grocery items has been implemented to prevent unwarranted price hikes.
Inspections cover compliance with margin reduction regulations and obligations on brand product stock levels, overseen by consumer protection authorities under the National Consumer Protection Authority (NKFH).
These measures apply to retailers classified under the standard industrial classification for mixed grocery retail, particularly targeting businesses with a net revenue exceeding 1 billion HUF in 2023. Both traditional and online retailers are subject to these checks.
In instances where chains attempt to circumvent regulations, the government has expressed readiness to extend margin controls to additional food categories and reintroduce state price regulations if necessary.
The government continues to engage with suppliers, urging them to refrain from unjustified price increases.
According to statements from the Ministry for National Economy, the government is prepared to take steps to keep service costs manageable for households as part of its broader strategy to alleviate financial burdens on consumers.
Recent statements by Minister for National Economy, Márton Nagy, highlighted concerns over the significant rise in bank service fees, which, according to data from the Central Statistical Office, outpaced inflation and transaction fee increases substantially.
In February, fees for financial services rose 13% year-on-year, with cash withdrawal fees increasing by 15% and account maintenance fees surging by 26%.
These escalations are viewed as excessive and unjustifiable by government officials.
To address these concerns, the government has engaged in ongoing discussions with the Banking Association.
The initial move has been to request voluntary price caps from banks and to propose the development of targeted account packages, particularly for seniors and families.
However, initial proposals have not met government satisfaction, prompting further negotiations.
The Ministry reiterated that its objective remains the reduction of household expenses and affordable access to essential goods and services, with the financial sector being a critical focus.
In addition to banking fees, the government is alert to price developments in telecommunications, where prices have also risen significantly in recent months.
The government's monitoring efforts in the telecommunications sector emphasize their readiness to intervene, should it become necessary to ensure fair pricing for consumers.
Regarding food prices, a price margin reduction for grocery items has been implemented to prevent unwarranted price hikes.
Inspections cover compliance with margin reduction regulations and obligations on brand product stock levels, overseen by consumer protection authorities under the National Consumer Protection Authority (NKFH).
These measures apply to retailers classified under the standard industrial classification for mixed grocery retail, particularly targeting businesses with a net revenue exceeding 1 billion HUF in 2023. Both traditional and online retailers are subject to these checks.
In instances where chains attempt to circumvent regulations, the government has expressed readiness to extend margin controls to additional food categories and reintroduce state price regulations if necessary.
The government continues to engage with suppliers, urging them to refrain from unjustified price increases.
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