Nationalist Orban faces his toughest challenge since he took office in 2010, with inflation at its highest level in two decades, record lows in the forint plumber and European Union funds at a standstill, amid a row over democratic standards. Blockade of a bridge in Budapest on Tuesday failed to derail approval of a government proposal to raise the tax rate for hundreds of thousands of small businesses, defying criticism from some business groups and opposition parties. Sign up now for FREE unlimited access to Reuters.com Register On Wednesday, Orban’s government also capped a cap on utility prices for higher-usage households, reversing one of the 59-year-old prime minister’s signature policies in recent years due to rising electricity and gas prices amid the war in Ukraine. “I have an acquaintance who only heats with electricity. The monthly electricity bill so far has been 30,000 forints ($75), which is not much, but from now on he will pay 153,000,” said Miklos Nyiri, 70. -old pensioner at the rally. “He is a pensioner, so the pension will be eaten up by the electricity bill and they will be left to graze in the field,” he said, adding, however, that the small-scale protest was unlikely to force Orbán to change course. Saturday’s rally was called by the small town’s mayor, Peter Marki-Zay, the independent opponent of Orbán, whose opposition suffered a crushing defeat in April’s parliamentary elections. Hungarian Prime Minister Viktor Orban sits before being sworn in to parliament in Budapest, Hungary, May 16, 2022. REUTERS/Bernadett Szabo The low turnout showed that despite underlying discontent with Orbán’s latest reforms to shore up Hungary’s state finances, anti-government sentiment was struggling to gain traction even in Budapest, where the opposition had its strongest presence in April. Ildiko Hende, 52, who works as a bank cleaner, also lamented the low turnout at the rally. “I have been working for more than 30 years, but what is happening in this country right now is hell incarnate,” he said. Despite a cap on fuel and some food staples, inflation has surged to a two-decade high of 11.7% year-on-year in June, forcing the central bank into its sharpest rate-tightening cycle since the collapse of communist rule. Even so, the forint is breaking through record lows against the euro, fueling inflationary pressures. “I just want to be able to live a normal life without having to pinch pennies at the end of every month,” Hede said. “The prices are so high it drives you crazy. This really isn’t sustainable.” ($1 = 397,2500 forints) Sign up now for FREE unlimited access to Reuters.com Register Report by Gergely Szakacs. edited by Clelia Oziel Our Standards: The Thomson Reuters Trust Principles.
