As Minister for National Economy Mihály Varga said, the Government began consultations concerning the diesel scandal already last week. There is, for the time being, no visible fallout from the issue, but declining car sales in Europe would “affect 0.3-0.6 percent of Hungary’s economic performance,” the Minister added.

Speaking with journalists at a press conference that followed the signing of a loan agreement with the European Investment Bank on Monday, Mihály Varga said that first the international repercussions of the issue as well as their impact on the Volkswagen Group must be observed and analysed.

“We are waiting as we do not know what the result of the investigation will be, how high the payable fine will be and how the VW Group will be affected. What we have seen so far was an emotional response, diesel engine manufacturers have been shocked, they have adopted a wait-and-see attitude and we must also wait and see the outcome of the investigation,” he pointed out.

The Minister said that the repercussions of the issue would also affect Hungary, as industrial sector output accounts for 20-22 percent of GDP and more than 10 percent of Hungarian exports. This issue, he added, has proven it right that the Government had already recognized the importance of economic diversification and placing larger emphasis on other sectors, such as pharmaceuticals, informatics or the manufacturing industry, because thus the weight of the car industry could be reduced.

(Ministry for National Economy)