Through the new investment promotion programme the Government aims to give additional impetus to successful, large domestic enterprises, Minister for National Economy Mihály Varga said as he announced a project for expanding production capacity at PEMÜ Plc, a manufacturer of special plastics products. The Minister voiced his opinion that steady investment growth is one of the most significant achievements of the Hungarian economy.
In 2015, total investment in Hungary was valued at some HUF 5600bn, which constitutes an increase of 0.6 percent compared to the record year of 2014, Mihály Varga said, quoting from the latest data released by the Hungarian Central Statistical Office. In the last quarter of the previous year, investment totalled HUF 2200, up by 7 percent year-on-year.
In harmony with these achievements, we assist large domestic companies capable of market expansion and development to maintain and bolster the position they have obtained, the Minister said. Thanks to a prudent and focused fiscal policy, Hungary’s budget can fund a financing programme aimed at improving competitiveness.
“With this fund we aim to complement the EU’s economic development funds,” he said. Hungary is one of the countries with the largest gains in the current EU fiscal period, as up to 2020 we are entitled to draw as much as EUR 32bn – HUF 12 000bn – of funding. However, EU regulations prevent some large enterprises from utilizing these funds. In such cases, the Minister added, the Government must – bearing in mind the best economic interest of the country -- create a level playing field. Therefore, in 2015 some HUF 3bn and in 2016 HUF 15bn are set to be allocated for this purpose. Until recently, 14 companies have joined the programme; development projects valued at some HUF 8.5bn have been completed and 500 new jobs have been created.
For PEMÜ Plc, the Government provides HUF 58 million for a project of HUF 189 million aimed at increasing production capacities.
(Ministry for National Economy)
