“Hungary has prevented the uncontrolled spread of the coronavirus epidemic, and accordingly from now on the new task of crisis management is job protection”, Minister of Foreign Affairs and Trade Péter Szijjártó declared at a presentation of competitiveness program funding certificates on Thursday.

“The healthcare system is now prepared for even the most difficult situations, but the country is only just beginning to face the effects of the crisis”, Mr. Szijjártó said. In the Minister’s opinion, the main task is to assure the preservation of jobs in view of the fact that it is also as a result of the employment record set prior to the pandemic that the Hungarian economy is able to face the crisis from a reinforced position.

“The downturn could also provide an advantage, however, if Hungarian enterprises regard the crisis as an opportunity to prepare, and spend the extra time they have available because of the downturn on development. The government is contributing to this by exploiting the easing of European Union restrictions to significantly increase the ratio of funding being provided towards investment projects. If Hungarian enterprises seize this extraordinary opportunity, they could become the winners of the transforming competition”, the Minister added.

Three more company directors were presented with funding certificates at Thursday’s event at the Ministry of Foreign Affairs and Trade. Balaton Furniture Limited’s investment of some 574 million forints (EUR 1.64 million) will be receiving over 287 million forints (EUR 820 thousand) in state funding. An increasing ratio of the Veszprém-based company’s annual turnover of 1.7 billion forints (EUR 4.85 million) is derived from exports. In 2017, the value of foreign sales was less than 600 million forints (EUR 1.7 million), but already exceeded 725 million forints (EUR 2 million) in 2018. In addition to Budapest and Miskolc, the company has also opened a showroom in Munich. At the event, Managing Director Károly Kalauz said that thanks to the funding the company will be able to improve its productivity, the sustainability of its production, and its foreign competitiveness. The investment will also lead to the creation of new workplaces at the plant. Member of Parliament for Veszprém Péter Ovádi (Fidesz) thanked the government for making a rapid decision with relation to the funding, and expressed his gratitude to the furniture plant for retaining all of its 150 employees.

Pek-Snack Limited is also undertaking to realise an investment project worth over 574 million forints (EUR 1.64 million), and will be also receiving over 287 million forints (EUR 820 thousand) in state funding. The company’s plant in Igal, Somogy County, which produces frozen bakery products for over 1300 franchise partners in Hungary and 500 in Croatia, will be receiving a new production line thanks to the planned investment project. In 2018, 735 million forints (EUR 2.1 million) out of the company total annual turnover of 5.2 billion forints (EUR 14.8 million) was derived from exports. Managing Director Csaba Antal said sales had fallen significantly during the past two months, but the company is already beginning to see the first signs of exiting the crisis. The company director said he sees the solution in product development and improving efficiency, explaining that Pek-Snack could soon appear on new markets, as a result of which is will also be able to increase its foreign sales. According to Mihály Witzmann MP (Fidesz), the competitiveness funding also proves that Hungarian enterprises can count on the Hungarian government in the most difficult situations. “Crisis management prior to 2010 was about state bankruptcy, tax increases and austerity measures, but is currently about competitiveness, tax cuts and wage supplements”, he added.

The 254 billion-forint (EUR 725 thousand) investment being realised by Genevation Aircraft Ltd. will be receiving 127 million forints (EUR 363 thousand) in competitiveness funding. The company, which operates at the sport airport at Jakabszállás, develops and manufactures aerobatic aircraft and aeroplane parts. It is taking part in several international projects, including the development of the world’s first hydrogen-powered air taxi. Managing Director István Viktor Szabó said the funding is an investment in the future, which will lay the foundations for the manufacturing and development of drones in Hungary. The region’s Member of Parliament and Fidesz Deputy Speaker of the National Assembly Sándor Lezsák praised the investment, explaining that something special is being developed in the Bács-Kiskun County town in view of the fact that the aircraft found there is one of only two of its kind in the entire world, but in future could become an aircraft that is part of everyday life.

586 enterprises applied for competitiveness funding by Thursday, undertaking to realise over 271 billion forints (EUR 774 million) in investments. The applying enterprises have already undertaken to preserve over 102 thousand jobs in addition to the investment projects.

(Ministry of Foreign Affairs and Trade/MTI)