“338 enterprises have already indicated to the government that they are preparing to realise a total of 162 billion forints (EUR 462 million) in investments in the interests of mitigating the negative economic effects of the coronavirus epidemic”, Minister of Foreign Affairs and Trade Péter Szijjártó said on Kossuth Radio’s “Sunday Paper” program.

Mr. Szijjártó said this will enable the protection of a total of 62 thousand workplaces.

The Ministry of Foreign Affairs and Trade launched a joint program with the Hungarian Investment Promotion Agency three weeks ago to provide funding to enterprises that undertake to maintain workplaces.

The Minister said the Cabinet is discussing the possible doubling of the program’s original 50-billion-forint (EUR 143 million) budget in view of the fact that the government will be providing enterprises with a 50 percent subsidy, but interest has been so high that the program is already oversubscribed by 30 billion forints, and the number of enterprises applying for the funding is expected to increase even further.

“It has become clear that the global pandemic is not simply a health issue, but also an economic issue, and although the primary task must be to protect human life, it is also the duty of states to handle its negative economic effects”, Mr. Szijjártó said.

He said that in his opinion the fact that so many enterprises have applied for the funding indicates that cooperation between the Hungarian private sector and the government is successful.

The Minister declared that there exists a major debate on economic philosophy in which the opposition is always demanding an increase in benefits. “This would lead to perpetually increasing debt and make the country vulnerable to speculators”, he stated. “In contrast, since 2010 the government has been following the principle that people should be helped with jobs, not subsidies. Jobs are created thanks to investment, and this is also why the government launched this latest program”, Mr. Szijjártó added.
The Minister said that in his opinion everything within the global economy will change following the global pandemic. “A totally new competition will begin with new participants, and the success of economies will be dependent on what starting position they are able to occupy”, he explained.

(Ministry of Foreign Affairs and Trade/MTI)