Hungarian VAT on home construction reduced to 5 per cent

Budapest, Hungary (Miles Actually, CC BY-NC-ND)

Poland – Ukraine: New credit line and gas deal

Today Romania’s Parliament will vote 2016 budget

Bulgaria wants to expand its nuclear power plant

Will Solvia Aboltina be the next Latvian PM?


VAT rate on home construction will be 5 per cent in the period of 2016-2019. Yesterday, Hungarian Parliament has approved a special bill (submitted by the government) reducing the rate from the current level of 27 per cent. Experts claim the new law will boost the home construction market – the number of newly built homes is expected to double as a result of changing VAT rate. “The bill applies to apartments up to 150 sqm and single-family detached homes up to 300 sqm” – Hungarian news agency MTI and Budapest Business Journal report.



Polish President Andrzej Duda visited Kyiv and at the joint press conference Ukrainian President Petro Poroshenko informed about an “agreement on PLN4bn credit line and swap” reached between Ukrainian central bank governor Valeriya Gontareva and her Polish counterpart Marek Belka. Prime Minister Arseniy Yatseniuk informed on gas deal according to which his country will buy up to 8 bn cubic meters of gas from Poland. “Ukraine is ready to buy 8 billion cubic meters of natural gas from Poland once the two countries have built an inter-connector between their gas transportation systems”, Interfax cites Mr. Yatseniuk. The presidents announced their intention to cooperate so both countries will be more energy-independent. President Andrzej Duda expressed his standpoint on EU-Russia relations. “Policy of sanctions in regard to Minsk Agreements and situation in the east of Ukraine must be prolonged and world shouldn’t drop this policy”, he said.



The Parliament will give its final vote on the budget today, December 16th, after it was adopted during the session yesterday. The MPs approved 22 amendments to the government’s draft budget and rejected 309. Every member of the Parliament’s special committees can propose an amendment.



Kozloduy nuclear power plant, the only NPP in Bulgaria and the largest one in the region, has just been presented to a Chinese investor. Bulgarian government seeks opportunities for cooperation in construction of a new unit at the NPP. The Energy Ministry didn’t reveal the name of the Chinese corporation that visited Kozloduy. “The visit comes less than a month after Bulgarian Prime Minister Boyko Borisov invited China to join as financial investor a project of U.S.-based Westinghouse Electric for the construction of Unit 7 in Kozloduy”, writes During a visit to Beijing in late November, Borisov proposed that an unnamed Chinese company join the project as financial investor with a 49 per cent share.



After Lamitoda Straujuma stepped down from her position last week, Latvian Unity Party is searching for a new PM. Solvita Aboltina, the leader of Unity, seems to be the only candidate. Aboltina (born 1963) has been a deputy of Latvian parliament (Saeima) since November 7th, 2006. Since 2014 she’s been serving as a chairwoman of the National Security Committee on the Saeima. Between 2004 and 2006 she was a Minister of Justice. The final decision will be made by December 28th. It is still not clear what how the cabinet will look like. The resignation of Mrs. Straujuma was also the end of the coalition of Unity Party, The Union of Greens and Farmers and the National Alliance. Baltic-Course cites Unity Party board member Karlis Sadurskis who says: “The possible models for the coalition are under the discussion but for tactical reasons they cannot be revealed”.


What’s up in indexes?

After “black” Monday, indexes are catching up.

BUX (of Budapest) gained 0.30 per cent, increasing from 23005.73 index points Monday to 23073.63 index points Tuesday, December 15th. From year-end it’s up 38.71 per cent.

BET (of Bucharest Stock Exchange) lost 0.29 per cent closing at 6861.73 index points. The day before it closed at 6881.48 index points. From year-end it lost 3.12 per cent.

PX (of Prague) was up 1.01 per cent climbing from 919.73 per cent Monday to 928.99 per cent Tuesday. From year-end it dropped by 1.87 per cent.

WIG20 (of Warsaw) grew by 0.98 per cent – from 1754.74 index points Monday to 1771.99 index points Tuesday. But from year-end it lost as much as 23.49 per cent.

OMXT (of Tallinn) fell a bit Tuesday, December 15th. It closed at 887.50 index points while on Monday it closed at 890.25 index points. From year-end it’s up 17.54 per cent.

OMXR (of Riga) was up 0.24 per cent – increasing from 573.15 index points Monday to 574.53 index points Tuesday. From year-end it’s up 40.81 per cent.

OMXV (of Vilnius) lost 0.05 per cent on Tuesday, December 15th falling from 481.65 index points to 481.43 index points. From year-end it grew by 6.41 per cent.

SAX’s (of Bratislava) result was 0 per cent change on Tuesday, December 15th. It closed at 295.10 index points. From year-end it’s up 32.74 index points.

SOFIX (of Sofia) closed at 434.95 index points on Tuesday, December 15th. It was up 0.28 per cent. The day before it closed 434.95 index points. From year-end it lost 16.46 per cent.

UX (of Kyiv) grew by 1.49 per cent, increasing from 677.95 index points Monday to 688.03 index points Tuesday. From year-end it dropped by 33.41 per cent.

CROBEX (of Zagreb Stock Exchange) climbed from 1653.09 index points Monday to 1656.34 index points Tuesday, being up 0.20 per cent. But it lost 5.10 per cent from year-end.

Share this post