Economy & Policy

New economic package may have sector-specific measures

A new package of comprehensive economic protection measures will be ready by mid-September.

Although the details of the new economic package are not yet known, it is already clear that more targeted, sector-specific measures can be expected to help jobs and businesses, according to Magyar Nemzet.

It is expected that as part of the package, new types of job protection benefits could replace part-time job protection wage subsidies that expire at the end of August. The government has previously stated that there are no plans to extend subsidies in this form, but other schemes may be needed.

Both trade unions and employers’ representations have long emphasized the need to extend state involvement, as the crisis is not over and the uncertainty caused by the epidemic has not diminished.

According to the proposals, uniform wage subsidies could be replaced by sector-specific schemes. Employers’ representatives will formulate their proposals, and the government is open to negotiations. Proposals may include tax and contribution reductions for employers as well as other incentive measures to support employment.

An important difference from the economic protection package adopted in the spring is that some of the subsidies can no longer be uniform. That is, sectors that have not yet been able to recover from previous shutdowns may receive more help.

In the second half of August, PM Orbán announced that the government was preparing a new two-year plan to support economic growth. He asked the government and economic actors to combine all the previous proposals and come up with a logical growth plan by mid-September, with all relevant measures included.

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