It’s a big problem: sooner or later the price caps must be removed – according to Márton Nagy, we must prepare for their abolition

He is the minister responsible for economic development InfoRadio He was a guest on his show Aréna, where he talked about, among other things, that price stops have fulfilled their role, but they are meant to deal with temporary difficulties, and now they are becoming more and more expensive to maintain, writes the Telex.

It's a big problem: sooner or later the price caps must be removed - according to Márton Nagy, we must prepare for their abolition
Photo: Minister of Economic Development Márton Nagy talks about the latest products of the Széchenyi Card Program at a press conference in Budapest on June 20, 2022. Despite the wartime environment, the SME sector will have access to cheap, accessible credit by continuing the Széchenyi card program – emphasized Márton Nagy at the press conference. MTI/Lajos Soós

Regarding fuel price caps, Márton Nagy said:

they were implemented because a price shock hit the economy. The measure was good as long as the situation was temporary. However, if this becomes permanent, then the price caps are not sustainable, according to him.

According to the minister, the measures have fulfilled their role. However, he thinks

the sustainability of the measures must be considered from the point of view of inflation and sustainability, and it must also be ensured that the appropriate amount of imports arrives in the country.

Gergely Gulyás, the Minister in charge of the Prime Minister’s Office, said at the government briefing on August 23:

the government maintains the price cap for food and gasoline until October 1st, after which a decision will be made on the possible extension.

According to Márton Nagy, the main goal now is to get the country out of the energy emergency as quickly as possible.

The minister sees the EU energy price regulatory steps mentioned by the President of the European Commission, Ursula von der Leyen, as problematic. The details are not yet known.

Electricity prices are different in all EU countries, there is no uniform guiding price, like the prices of the Dutch TTF exchange for gas

said the minister. According to Nagy, it does not seem like a very good idea to put a price cap on this “variety”, it would be better to separate the prices of electricity and gas.

Regarding the “idea” of the EU price cap related to the natural gas price, he said that, in his opinion, it was not well thought out. Maximizing the stock market price does not seem like a good solution. 80 percent of the EU’s gas consumption is covered by imports, mainly from Russian sources, but if the Russians will not accept the prices set by the Union, they can say that they will not deliver at such prices, and that would be an indirect gas embargo. According to the minister, this should not be allowed.

More details itt are readable.

Source: Telex, infostart

Source: Propeller – Saját anyagok by propeller.hu.

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