Hungary loses buildings, services amid fuel crisis

People in Hungary are grappling with the closure of many public buildings and services that have shut their doors temporarily because of the fast-rising cost of energy.

The European television news network Euronews said dozens of Hungarian cities have not been able to afford the high cost of heating facilities, such as libraries, museums, pools, spas, theaters, and sports venues, after government subsidies ended.

The broadcaster quoted Tamas Kovacs, a deputy mayor in the city of Szeged, as saying his community of 160,000 is typical of many tightening their belts after natural gas bills rose sevenfold because of shortages attributed to the Russia-Ukraine conflict.

"The Hungarian state has created a dysfunctional system in the municipal sector," he said. "There are municipalities that have been partially dysfunctional since September, trying to perform at least the mandatory public tasks but with reduced public transport or closed facilities."

He said news that the last federal financial support will end on Jan 1 has triggered many more closures.

One female resident told the broadcaster: "We are facing a very bad situation, so everything has to be tightened, both for the individual and for the town."

The capital, Budapest, has, so far, managed to keep its public facilities open but enterprises have struggled to keep going, Euronews added, with the nation's largest hotel, the 499-room Hotel Hungaria, announcing last week it will close until early March.

The energy crisis that has caused problems in Hungary and throughout Europe led insurance companies in Germany to warn companies and individuals on Monday not to take risks when trying keep warm.

The GDV insurance lobby said people are understandably looking for ways to use less power, but that such things as tea-light ovens and outdoor heaters used indoors are dangerous.

"We are concerned to see what adventurous means some tenants and homeowners are resorting to," GDV's chief executive, Joerg Asmussen, told the Reuters news agency. "We strongly advise against dangerous experiments."

While the high cost of energy has caused alarm recently, its full impact has not been felt yet, with many European nations experiencing unusually mild weather that has allowed people to hold back on firing up the central heating.

The BBC said governments are also helping businesses and households with the cost, but David Malpass, president of the World Bank, told the broadcaster nations will not be able to help all of their citizens.

"Governments are saying'we will take care of everyone', which is just too expensive," he said.

Instead, he said governments should ensure subsidies are temporary and directed at the people who need them the most; otherwise "people will be left for years and even decades paying for that debt".

The World Bank added that energy prices should fall by 11 percent next year, after spiking by 60 percent during this year.