The economic crisis has proven that those countries can weather the storm in which the economy is based on production and work. The Government of Hungary stated already in 2010 that prosperity cannot be achieved without productive work, Minister for National Economy Mihály Varga said in Zalaegerszeg.
At the opening ceremony organized for the inauguration of the new, HUF 1bn production facility of Zalaco Zrt the Minister said that the development of this family enterprise also shows that “long-lasting economic expansion and the establishment of security and prosperity is only possible through investment and work.”
As he added, company history demonstrates that the Hungarian industrial sector does provide opportunities and besides international enterprises Hungarian producers can also expand their capacity and find sales options that can secure the livelihood of employers and employees.
Mihály Varga pointed out that many people had doubted that Hungary would be successful, but the last years have proven that the country has managed to overcome the crisis on its own, without international resources, and exit the excessive deficit procedure. The country’s level of state debt and fiscal deficit has fallen significantly and in the second quarter Hungary’s GDP growth was the second largest within the EU28, he stressed.
Through the New Széchenyi Plan, the Government has added HUF 311 million to the economic technology development project the costs of which exceeded HUF 1bn, but the project also gained from the positive attitude of the local government. “Thanks to the city’s investment support programme, Zalaegerszeg and the surrounding area are one of those Hungarian regions which are considered to be attractive investment destinations from both domestic and European aspect,” the Minister emphasised.
Mihály Varga also underlined that the country’s economic progress and development depends on enterprises which can achieve business success not only within Hungary but also on export markets. The Government intends to provide further assistance from domestic resources for enterprises. To this end, however, support mechanisms need to be reconsidered, he added. In the next seven years, he said, food industry investment projects will also receive more funding, for which HUF 300bn has been earmarked.
The Minister pointed out that while in the previous seven-year EU fiscal period 16 percent of funding was disbursed for economic development, in the current period this indicator will be 60 percent. “However, the public administration and state reforms must be continued,” he stressed.
Zalaco CEO László Berta said that his family bought the company – which is turning 65 years old next year – 12 years ago. The company which used to have 180 employees provides work for 470 people today and the former annual turnover of HUF 560 million has been increased to more than HUF 4bn.
(Ministry for National Economy)
