PM Orban struggles to revive economy from inflationled downturn
Move could channel more than 800 mln to housing market in 2025
Combined impact with other savings could reach up to 2.73 bln
Orban has previously used pension savings for shortterm goals

BUDAPEST, Oct 14 Reuters Hungary39;s economy ministry proposed on Monday that savings in private pension accounts can be used taxfree for housing purposes as a oneoff measure next year as part of wider efforts to boost the economy ahead of a 2026 parliamentary election.

In power since 2010, Prime Minister Viktor Orban has struggled to revive Hungary39;s economy after last year39;s downturn following a surge in inflation to more than 25 in the first quarter of 2023, the highest level in the European Union.

Hungary39;s budget deficit has also averaged nearly 7 of gross domestic product since the COVID19 pandemic, above EU average levels, limiting the scope for the kind of largesse that helped Orban get reelected in 2022.

The economy ministry said the proposal would allow the full amount of savings to be used next year for renovations, equity for new mortgages or repayments for existing mortgages.

The government will eliminate bureaucratic hurdles to allow people to decide if they want to voluntarily use their savings for housing purposes, the ministry said in a statement.

The ministry said more than 1 million private pension fund members had savings worth 2 million forints 5,457 on average, which could now be used…