Hungary's protected price removal sparks criticism amid European caution

Hungary's Tisza government appears to have rushed its decision to dismantle protected energy prices, a move that runs counter to the prevailing European trend of maintaining emergency measures implemented due to the energy crisis. While most European nations are reluctant to withdraw these supports, Hungary is proceeding with their removal.

This decision is particularly noteworthy given the current economic uncertainties in Europe. Analysis suggests that fears surrounding the conflict in Iran persist, with no clear end in sight for lasting peace in the Middle East. This instability, coupled with ongoing economic struggles in the European economy, exemplified by the crisis in the German automotive sector (Volkswagen potentially laying off thousands and Mercedes-Benz asking employees to work extra hours for free), contributes to a volatile environment.

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The signs suggest that Tisza rushed things.

Furthermore, the European Central Bank recently raised interest rates due to inflation. If the situation in Iran does not stabilize or if problems resurface, inflationary pressures could quickly return. Consequently, most European governments are adopting a wait-and-see approach, avoiding hasty or definitive actions.

In contrast, the article uses a strong term, "böszmeség" (borrowed from the "Őszöd speech" vocabulary, implying foolishness or recklessness), to describe the Hungarian cabinet's action. It suggests that no one in Europe has undertaken such a "böszmeség" as the Tisza cabinet has. The abolition of protected prices is framed as one of the measures the Tisza government is using to dismantle the consumer protection and economic stimulus steps introduced by previous Orbán cabinets.

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In other words – using the vocabulary of the Öszöd speech – nobody in Europe has done such a böszmeség as the Tisza cabinet.