Public discontent in Hungary has grown significantly in recent days, after the government introduced sweeping changes to the taxation of the Hungarian SME sector and partially reversed price caps on household energy prices by limiting discounts to below-average energy consumption. The measures have led to manifold increases in small business taxes and higher energy prices for a vast number of households.

Widely seen by the public as austerity measures, the policies provoked days of anti-government protests, marking the first major political challenge for Prime Minister Viktor Orbán’s new Government and the ruling Fidesz-KDNP alliance. The public discontent with the austerity measures comes as Hungary faces up to a worsening economic climate, with the government hoping to reach an agreement with the EU to unlock much-needed post-pandemic recovery funding.

Below, Aretera takes a look at the recent austerity measures, their consequences for international businesses and Hungary’s post-election landscape.