Gulyás Gergely, the Minister heading the Prime Minister's Office of Hungary, addressed the media on Thursday regarding the government's regulatory efforts to stabilize food prices amidst growing concerns over profit margins in the retail sector.

The government has previously announced a price margin cap, which is now under review for effectiveness.

Minister Gulyás highlighted that this price margin regulation serves as a vital intervention, emphasizing it as a last resort aimed at curbing excessive profits among retailers.

Reports indicate that profit margins among traders vary significantly, with some exceeding 40-60% or even 100%, while others remain below 10%.

This pricing regulation extends beyond specific product categories, impacting all items on the market.

Should retailers attempt to recover losses through increased prices on other goods, the government has indicated it will step in to regulate those prices as well.

In reviewing European practices, the Hungarian government noted similar regulations in the Baltic states, as well as in countries like Macedonia, Greece, Romania, and Croatia where even stricter measures are in place.

The government has expressed a preference for cooperation rather than conflict with retailers, but remains prepared to adopt more radical EU practices if necessary.

Gulyás projected a significant decrease in the prices of essential goods such as eggs, sour cream, flour, and milk as a direct result of these interventions.

The government is optimistic that existing measures will suffice to reverse current pricing trends but retains other regulatory options available under EU standards.

Retailers with profit margins exceeding 10% will be subject to legal penalties, with possible sanctions ranging from monetary fines to business closures for severe or repeated infractions.

In discussions about the conflict in Ukraine, Gulyás described the recent European Parliament resolution advocating for increased arms shipments as incomprehensible and expressed disappointment in the European People's Party's support for such measures.

He noted that Prime Minister Viktor Orbán previously suggested a ceasefire proposal in July 2022, which was rejected by EU leadership at that time.

The minister remarked on the self-imposed frustration of certain politicians who advocate sending arms while simultaneously dismissing Hungary's position on the Ukraine-EU accession debate.

Gulyás underscored that he believes such expedited membership contradicts EU principles, as it would not be merit-based but rather preferential, to the detriment of Western Balkan states awaiting accession.

The government approved a symbolic vote regarding Ukraine's EU membership status, with further details expected to be outlined in the coming week.

On the topic of sanctions, Gulyás stated that the inclusion of Antal Rogán on the American sanctions list was unwarranted and emphasized that Hungary aims to provide full compensation to farmers affected by foot-and-mouth disease.

Further tax reductions were discussed, including plans to exempt single mothers under 30 from income tax starting January 1, 2026. Gulyás confirmed that Hungarian fuel prices cannot exceed regional averages, aligning with favorable price trends due to market conditions and a strengthening forint.

Plans for constitutional amendments aimed at allowing the suspension of citizenship in specific conditions have been proposed, which necessitate parliamentary debate.

Gulyás also mentioned the government’s intent to enforce stricter regulations in the drug strategy.

Regarding cash usage, he stated that while digital payment methods are widely available, this does not warrant the restriction of cash transactions.

In other developments, Gulyás indicated that Israeli Prime Minister Benjamin Netanyahu is scheduled to visit Budapest before Easter.

In a separate incident, local representatives from Sós-kút expressed their strong opposition to a planned battery processing facility in their community, emphasizing their active resistance against the project that they claim was imposed without due consultation.