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Jul 02, 2020

FM: Incoming investments crucial to economy

The foreign minister said the success of the Hungarian economy depends greatly on the production and research capacities investors bring to the country.

 

The foreign minister said the success of the Hungarian economy depends greatly on the production and research capacities investors bring to the country.

Péter Szijjártó, Minister of Foreign Affairs and Trade, said Hungary “has reason to be confident” after continuously seeing record investments over the last five years. Hungary “undoubtedly provides the most competitive and most favorable” investment environment in central Europe, he added. And this will be further improved by a new comprehensive investment scheme launching next week, now that it has been green-lit by the European Commission.

The minister said the scheme will allow the government to provide an unlimited amount of funding in support of business investments to companies that commit to saving jobs, covering up to 50 percent of their investments. In addition, Hungary has lowered the social contribution tax by two percentage points, allowing employers to spend the money saved on salary increases or to invest it, he said.

Minister Szijjártó said Baden-Württemberg was Hungary’s second most important partner state in Germany, with 290 companies based there doing business in Hungary and employing some 70,000 Hungarians. The government is in talks with these companies on potential capacity expansions in Hungary, he added.