Significant initiatives are being undertaken by the governments of Hungary and Sweden, aimed respectively at increasing pensions and reducing the cost of food.
More specifically, one of the stated goals of the Orb?n government, the introduction of the so-called 14th pension, has been highlighted increasingly often in view of the pre-election climate.
According to the plan, implementation of the measure will be gradual and will begin next February with the payment of the regular monthly pension, the 13th pension, and an additional amount corresponding to one quarter of the monthly pension. This amount will increase in the following years, with the aim of ultimately granting one full additional annual pensionnamely the 14th. The announcement was accompanied by remarks with clear pre-election undertones, reminding that his government had also reinstated the 13th pension, which had been abolished by previous left-wing governments, and emphasizing that all citizens benefit from the measures regardless of their political preferences.
Meanwhile, after years of steadily rising food priceswhich have caused significant concern among Swedish consumersprices in Swedish supermarkets remained almost unchanged in October 2025. This development is attributed to the ongoing price war among retailers, the stabilization of the Swedish krona, and the drop in international crop prices over the past year. However, the main driver has been the aggressive pricing strategies of discount chains, especially in October, when the National Pensioners Organisation conducts its annual price survey, prompting supermarkets to display competitive pricing. Retailers base their strategies on the previous years shopping basket. This year, price reductions were exceptionally large. According to market experts, the unprecedented competition led to significant price drops in certain categories: fruit, traditional yellow cheese, and frozen vegetables all became cheaper, with fruit prices falling by 1.2 percent due to seasonal factors, including lower citrus prices.
Furthermore, the Swedish government has decided to cut food VAT by half, from 12 percent to 6 percent, starting in April 2026. This measure is part of a broader government strategy that has included a series of tax reductions across four consecutive budgets, contributing to the widening of the national deficit. The deficit is projected to reach approximately 35 billion euros during the 20232026 period, in stark contrast with the surpluses recorded during the previous two terms. Finance Minister Elisabeth Svantesson defended the tax cuts, arguing that under recessionary conditions deficits are justified as a means of stimulating growth, and noting that Swedens economic growth and productivity had been lowimplying that tax relief could provide the necessary boost.
The information was provided by the Economic and Commercial Affairs Offices in Budapest and Stockholm.
