Democracy Digest: Russian Energy Threats Cast Shadow Over Eastern Europe’s Economies

Under the umbrella of the state of emergency, the government has passed a set of decisions and laws, including a ban on energy exports and an increase in production at Hungary's only nuclear power plant.

As part of the package, the government also scrapped a years-long cap on utility prices for higher-usage households. It's still unclear what this will mean for millions of Hungarians as no exact data are available. The measure will take effect as early as August to ensure the continued supply of energy in winter, the Prime Minister's Office said.

The government also reformed the Small Taxpayers' Itemized Tax, KATA, the most popular choice for almost 400,000 small businesses and self-employed citizens to pay their taxes due to its simple administration and low tax rate. According to the latest government decision, KATA will now be available only to full-time self-employed individuals providing services or selling products to individuals.

The decision to pass this package in the parliament on Tuesday and Wednesday triggered immediate protests across the country. In Budapest, demonstrators on Tuesday blocked one of the bridges over the Danube, and slowed traffic on another.

The demonstrations continued on Wednesday when several thousand protesters gathered near the parliament. After the official rally organised by the opposition Momentum party, most protesters marched through central Budapest chanting: "We've had enough" and occupying main traffic arteries in the rush hour. In the evening, the protesters headed to Prime Minister Viktor Orban's office, and by dawn on Thursday, several hundred people still occupied one of the bridges over the Danube.

Meanwhile, the European Commission released its 2022 Rule of law report on Wednesday....