“Families with at least one child will be able to recover half the cost of renovations, up to three million forints,” said Family Minister Katalin Novak.
The support provided by the state will cover the cost of works to improve the energy efficiency of the home, renovate the bathroom or kitchen, and expand the home. Novak cited the case of a family with a child who could spend six million forints on renovation work and save three million forints.
The announcement comes a week after Prime Minister Viktor Orban announced that Hungary would apply a 5% reduced VAT rate to housing construction projects by the end of 2022, with the idea of supporting the construction sector, notes Reuters, taken over by agerpres.ro.
Hungary, a country with a standard VAT rate of 27%, the highest in the European Union, has also applied a 5% VAT rate to housing projects since 2016 and until the end of last year. The measure triggered a housing boom in Budapest, which allowed Hungary to record economic growth rates between 4% and 5%.
ING economist Peter Virovacz estimated that next year the budget deficit will rise to 4% of GDP, above the target of 2.9% of GDP included in the 2021 budget. of houses. However, such unique measures cannot reverse the economic shock caused by the coronavirus pandemic, “Virovacz added.
In the second quarter of this year, the Hungarian economy contracted by 13.6% year-on-year due to the strictest isolation measures in Central Europe, and this year as a whole could contract by 5% -7 %.
The health crisis and a more modest return than expected could become the biggest threat to Prime Minister Viktor Orban in the 2022 parliamentary elections.
In fact, the Hungarian government could use European money for this program, as the European Commission on Wednesday published the strategy on the wave of building renovations to improve the energy performance of buildings.
The EU executive aims to achieve at least double renovation rates over the next ten years and to ensure that renovations lead to increased energy efficiency and resource efficiency.
Renovation of buildings will improve the quality of life for people living in and use buildings, reduce Europe’s greenhouse gas emissions, stimulate digitization and improve the reuse and recycling of materials, the Commission said.
The Commission’s estimates show that by 2030, 35 million buildings could be renovated and up to 160,000 additional “green” jobs could be created in the construction sector.
“Buildings are responsible for about 40% of the EU’s energy consumption and 36% of its greenhouse gas emissions. However, only 1% of buildings are subject to energy-efficient renovations each year, so it is essential that effective measures are taken for Europe to become climate neutral by 2050, ”a statement said. of the Commission.
The EU believes that public funding renovation policies are a response to social problems, given that almost 34 million Europeans cannot afford to heat their homes.
“We want everyone in Europe to have a home that they can light, heat or cool without getting into debt or harming the planet. The wave of building renovations will improve the places we work, live and study, while reducing our impact on the environment and providing jobs for thousands of Europeans. We need better buildings if we want to rebuild more thoroughly, “said Frans Timmermans, executive vice president for the European Green Pact.
The strategy gives priority to actions in three areas: decarbonization of heating and cooling systems; addressing the problem of energy poverty and low-performing buildings; as well as the renovation of public buildings, such as schools, hospitals and administrative buildings.
In addition, the Hungarian Ministry of Innovation and Technology is launching a program to support less qualified young people and to revitalize labor market demand for young people looking for work. The program, for which the government has allocated more than 12 billion forints, will create the opportunity for about 25,000 young people with poorer vocational training to find a job, starting in mid-October, the secretary of state for employment, quoted by a statement from the Ministry of Innovation and Technology, released on Wednesday.
Sándor Bodó also mentioned that the Government continues to make efforts to get more and more citizens to work, because the employment of the people is urgently necessary for the functioning of Hungary. The relevant ministry recalls that the Action Plan for the Protection of the Hungarian Economy has so far helped over 1.4 million citizens. As a result of measures taken to protect jobs and create new jobs, the number of employees rose again by more than 4.5 million by August, and the number of jobseekers continues to fall by more than 4.5 million. three months.