Hungarian Health Sector Faces Stagnation as Major Hospital Project Canceled
The government halts the construction of the South Buda Central Hospital and announces no salary increases for health workers in the next two years.
Hungary's Ministry of Health has confirmed that the long-anticipated South Buda Central Hospital will not be built, according to Health State Secretary Péter Takács.
The project, which was seen as feasible in 2019 amid a thriving Hungarian and European economy, has been abandoned due to the current economic climate and a lack of necessary EU development funds.
Takács emphasized that the decision by the government to halt the project was entirely realistic given the circumstances.
The hospital was initially planned to break ground in 2022 after the government acquired the land in 2017 and began site preparation in 2020. However, by the end of 2023, approved plans had not materialized, leading to the dissolution of the project company responsible for the initiative.
Significant financial resources, estimated at around 14 billion forints, had already been allocated to the project by that time.
Additionally, Takács has stated that the health sector will not see salary increases in the years 2025 and 2026. While acknowledging that workers will have access to increased family tax benefits, he indicated that these measures will not constitute a direct wage increase.
The planned doubling of family tax benefits is expected to have a positive impact on the majority of health workers, who are predominantly women, especially in nursing roles and among younger physicians.
In a related development, the Ministry of Agriculture has also faced criticism from farmers regarding the allocation of EU-area based subsidies linked to the agro-ecological program.
Many farmers recently received notifications indicating that only a portion of their entitled subsidies would be disbursed due to various compliance issues noted by the authorities.
This decision has resulted in frustration, with farmers describing the situation as punitive.
Farmers have voiced concerns over the rationale provided for the reduced payouts, which they argue lacks clarity and realism.
The President of the National Federation of Agricultural Cooperatives and Producers confirmed that complaints about the reduced payments have indeed been widespread.
As a consequence of the bureaucratic challenges under the EU's Common Agricultural Policy (CAP), many farmers are at risk of only receiving a fraction of the assistance they expected, further exacerbating financial challenges they have faced in recent years due to adverse weather conditions and ongoing economic pressures.
The federation is calling for immediate discussions with the Ministry of Agriculture to address the situation, emphasizing the urgent need for a more farmer-friendly approach in subsidy administration.
The project, which was seen as feasible in 2019 amid a thriving Hungarian and European economy, has been abandoned due to the current economic climate and a lack of necessary EU development funds.
Takács emphasized that the decision by the government to halt the project was entirely realistic given the circumstances.
The hospital was initially planned to break ground in 2022 after the government acquired the land in 2017 and began site preparation in 2020. However, by the end of 2023, approved plans had not materialized, leading to the dissolution of the project company responsible for the initiative.
Significant financial resources, estimated at around 14 billion forints, had already been allocated to the project by that time.
Additionally, Takács has stated that the health sector will not see salary increases in the years 2025 and 2026. While acknowledging that workers will have access to increased family tax benefits, he indicated that these measures will not constitute a direct wage increase.
The planned doubling of family tax benefits is expected to have a positive impact on the majority of health workers, who are predominantly women, especially in nursing roles and among younger physicians.
In a related development, the Ministry of Agriculture has also faced criticism from farmers regarding the allocation of EU-area based subsidies linked to the agro-ecological program.
Many farmers recently received notifications indicating that only a portion of their entitled subsidies would be disbursed due to various compliance issues noted by the authorities.
This decision has resulted in frustration, with farmers describing the situation as punitive.
Farmers have voiced concerns over the rationale provided for the reduced payouts, which they argue lacks clarity and realism.
The President of the National Federation of Agricultural Cooperatives and Producers confirmed that complaints about the reduced payments have indeed been widespread.
As a consequence of the bureaucratic challenges under the EU's Common Agricultural Policy (CAP), many farmers are at risk of only receiving a fraction of the assistance they expected, further exacerbating financial challenges they have faced in recent years due to adverse weather conditions and ongoing economic pressures.
The federation is calling for immediate discussions with the Ministry of Agriculture to address the situation, emphasizing the urgent need for a more farmer-friendly approach in subsidy administration.
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