“806 enterprises submitted their applications within the framework of the competitiveness-increasing funding program, undertaking to realise 377 billion forints (EUR 1.09 billion) in investment projects; the government is providing up to half of the value of the investments realised in the interests of protecting jobs for all applications that are legally valid, and accordingly the government has increased the budget for state funding to 169 billion forints (EUR 490 million)”, Minister of Foreign Affairs and Trade Péter Szijjártó said at a press conference in Budapest on Wednesday.
Mr. Szijjártó added that the decision was necessary because it is the investment projects realised by Hungarian enterprises in this difficult period that are creating the foundations for the future success of the Hungarian economy. He highlighted that protecting jobs and the creation of new workplaces is important to the government, and this is why it has decided to finance work, not unemployment, and to help people by creating jobs instead of with benefits.
The Minister said that a great effort had been made over the past ten years to strengthen the Hungarian economy, to ensure that the country can return to the same growth trajectory it was on prior to the outbreak of the global pandemic as early as possible following such a difficult period. He recalled that Hungary boasted the highest rate of economic growth in Europe in 2019, thanks to the fact that it has become the most attractive target for investment in Central Europe. “The broad spectrum of funding being provided towards investment projects and the 2 percentage point reduction in the level of employer social contributions tax that will be coming into effect on 1 July both serve to assure that the country will be able to retain this position in future”, he explained.
Evaluating the results of the competitiveness program, Mr. Szijjártó said that while the news in Europe and within the global economy concerns the fact that enterprises are going bankrupt, in Hungary 806 enterprises are undertaking to realise over a billion euros in investment. “I don’t think too many regions or European countries are able to report on the fact that small, medium-sized and large enterprises are making commitments of this level in this difficult period”, the Minister of Foreign Affairs and Trade stated.
Three more enterprises were officially presented with their funding certificates at the Ministry of Foreign Affairs and Trade on Wednesday. Bridgestone Tatabánya Limited’s 524.27-million-forint (EUR 1.52 million) investment project is receiving 262.13 million forints (EUR 761 thousand) in state funding. The 564.78-million-forint (EUR 1.64 million) investment project being realised by EMIKA Zrt. will be receiving 282.39 million forints (EUR 820 thousand) in state funding. The Hungarian state is contributing 287.27 million forints (EUR 834 thousand) towards the 629.89-million-forint (EUR 1.83 million) investment projects being realised by Orha Művek Limited.
Managing Director of Bridgestone Tatabánya Ltd. Melinda Topolcsik said the tyre manufacturer began operations in 2008, and exports 98 percent of its products. Thanks to the state funding being received, the company will be establishing a production line capable of manufacturing high-performance tyres, as a result of which it will be able to increase its production capacity and also improve its competitiveness.
CEO of EMIKA Ltd. Csaba Droblyen report on the fact that the 100 percent Hungarian-owned company was founded in 1967. The company is one of Hungary’s largest manufacturers of traditional interior and exterior lighting, and since 1992 another of the company’s important activities has been metalworking. Thanks to the state funding, the company will be installing state-of-the art surface treatment technology, as well as a fully automatic painting system.
Managing Director of Orha Művek Ltd. József Orha said the Hungarian designer and manufacturer of steel structures already exports its products to Finland, Norway, Germany and Great Britain. Thanks to the funding being received, the company will be able to construct a 2000-square-metre production hall, which will result in a 35 percent increase in capacity.
(Ministry of Foreign Affairs and Trade / MTI)
