The planned 10 per cent drop in gas prices must be applied to district heating as well, Prime Minister Viktor Orban said in Salgótarjan on 10 December, where he held talks on the northern town’s debt settlement. The Prime Minister said that the Government's objective was to free the municipality of its loans by 2014.

Viktor Orbán told a press conference that district heating bills must fall by at least 10 per cent from 1 January 2013. The Government also made a decision last week on reducing residential gas and electricity prices by 10 per cent.

The Prime Minister stressed that although gas and electricity-sector investors may lose profits due to the price cut, the current crisis has made equal burden-sharing an absolute necessity.

The current 10-per cent drop in utility prices is the first step in a longer process, he said, adding that in Hungary the proportion of living costs in relation to salaries is particularly high when compared to the Western European average.

Orbán also briefed participants that the Government was fighting against debt on three levels, making efforts to cut the public debt, to help families by enabling them to pay back mortgages taken out in foreign currencies at a fixed exchange rate, and by paying off the debts of local councils. He added that the total cost of paying off the debts of local councils in towns and villages with fewer than 5,000 residents would fall below 100 billion forints.
In the wake of talks held with the local mayor, full employment has been targeted in Salgótarján by 2014. Although private equity will not be able provide labour to everyone by that time, through the new Start labour programme Salgótarján may become a place where everybody who has the will to work shall find a job.

(Prime Minister’s Office)