The week in business and finance in Hungary

See below MTI’s and Daily News Hungary’s main business and financial news from the previous week:

WILL THE PRICE OF DRAFT BEER DECREASE DRASTICALLY IN HUNGARY?

The VAT of several restaurant services is expected to fall to 5% next year, and beer manufacturers have asked the Minister of National Economy to expand the discount to draft beer. With the support of the Kraft Beer Association, an exemplary unity was formed in the industry.

NO MORE EMPTY INDUSTRIAL PROPERTIES IN THE VICINITY OF BUDAPEST

Hungary’s industrial real estate market reached a 5.5% vacancy rate in the first half of 2017, which is a record-breakingly low rate since the measurements introduced by the Negotiating Forum of Budapest Estate Advisors.

INVESTMENTS CLIMB 26.8 PC IN Q2

Investments in Hungary rose by an annual 26.8 percent in the second quarter, albeit from a low base, the Central Statistical Office (KSH) said. Growth was strong across nearly all sectors.

ORBÁN, PUTIN REVIEW OLD BUSINESS AT TALKS IN BUDAPEST

Prime Minister Viktor Orbán and Russian President Vladimir Putin reviewed the implementation of agreements reached earlier at talks in Budapest. The sides confirmed that construction works of two new blocks at the Paks nuclear power plant would start in January 2018. Putin visited Budapest for the opening of the World Judo Championships which the capital is hosting until September 3.

HUNGARY PMI RISES TO 56.6 IN AUGUST

Hungary’s seasonally-adjusted Purchasing Managers Index (PMI) stood at 56.6 points in August, rising from 54.2 in July, the Hungarian Association of Logistics, Purchasing and Inventory Management (Halpim), which compiles the index, said. An index value above 50 shows expansion in the manufacturing sector, while a value under 50 signals contraction.

GOVERNMENT SUPPORTS BIG FAMILIES WITH MORTGAGE PAYOFFS

Hungary’s government said it will pay off 1 million forints (EUR 3,271) of families’ mortgages for every third and subsequent child they have from the start of next year. The measure is expected to cost the state 17 billion forints in 2018. Read more HERE.

HUNGARY ASKS BRUSSELS TO CONTRIBUTE TO COST OF BORDER DEFENSE MEASURES

Prime Minister Viktor Orbán asked the European Commission to cover half of the 270 billion forints (EUR 883.3m) Hungary has spent on border protection measures “in the spirit of European solidarity”. “We agree that solidarity is an important principle of the European community. When Hungary had to protect the common external borders, we started with immediate action and not a request for help. I hope that, in the spirit of European solidarity, we can rightly expect that the European Commission, acting on behalf of Member States, will reimburse half of our extraordinary border protection expenses in the foreseeable future,” Orbán said in a letter to EC President Jean-Claude Juncker. Opposition Jobbik has called on the government to file an official request with the European Union for the reimbursement of the full EUR 883m Hungary has spent on border protection measures since 2015.