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Jun 10, 2020

FM says European Union should allow member states to raise job protection support

The foreign minister has called on the European Union to allow member states to raise their job protection support for companies above 800,000 euros.

 

The foreign minister has called on the European Union to allow member states to raise their job protection support for companies above 800,000 euros, the current limit for job protection or modernization funding.

In a video posted on Facebook after a meeting of EU foreign affairs and trade ministers, Péter Szijjártó noted that Hungary had initiated talks at the European Commission on eliminating that limit a month and a half ago.

The Hungarian government has supported the investments of 806 companies with grants totaling HUF 170 billion (EUR 494.1m). The companies’ investments are worth a combined 377 billion forints. The support has so far saved over 143,000 jobs, Minister Szijjártó said.

The ministers also discussed the new, post-pandemic world economy. After the pandemic, new competition is about to start with “new players and new rules,” the minister said.

Minister Szijjártó said Europe can only be successful in that new competition if we support companies willing to invest into capacity expansion and technological upgrades. Otherwise, it will incur a competitive disadvantage.

The minister slammed the EC for failing to respond to the proposal on raising the limit on job protection funding. Should the EU do so, “the Hungarian funding scheme is ready to roll,” he added.

Photo credit: Origo