“Applications by enterprises for competitiveness funding have now exceeded 100 billion forints (EUR 284 million), and accordingly the government could increase the budget for competitiveness contributions for a second time”, Minister of Foreign Affairs and Trade Péter Szijjártó announced on Tuesday evening in Budapest after presenting funding certificates to three enterprises.

Mr. Szijjártó said he will be requesting the availability of further funding for the competitiveness-increasing program at Wednesday’s cabinet meeting. “14 enterprises requested funding on Monday alone, bringing the total since the program was launched to 540. Applicants have undertaken to realise a total of 260 billion forints (EUR 740 million) in investment projects”, he stated. Last week, the budget for the competitiveness-increasing program was doubled to 100 billion forints. The Minister of Foreign Affairs and Trade has been asked by the Prime Minister to indicate if demand for the funding also exceeds the increased budget.

According to Mr. Szijjártó, the outstanding level of interest on the part of enterprises confirms the development policy of the past ten years. “It was therefore a good decision to reinforce Hungarian enterprises, and in addition to the development projects they have also undertaken to preserve 96 thousand workplaces”, he emphasised. “The successful rebooting of the economy depends on workplaces, and accordingly these must be protected just like people’s health”, he declared.

He pointed out that the crisis has, however, not only caused recession, but also holds opportunities. “Global economic rules and the distribution of power are transforming, and those who are able to develop and expand now could acquire a competitive advantage”, the Minister said, justifying the promotion of investment. He added, however, that the government would regard the increasing of the European Union’s 800-thousand-euro funding limit as being justified, but this would only be possible following the authorisation of EU decision-makers.

On Tuesday, the Ministry of Foreign Affairs and Trade presented funding certificates to three enterprises. The 580-million-forint (EUR 1.65 million) investment to be realised by Merkbau Ltd. is being awarded 287 million forints (EUR 820 thousand) in state funding. At the event, Managing Director of the Kiskunhalas-based company Jakab Merényi said the enterprise had decided on a long-term company strategy following the 2008 crisis. The current crisis has temporarily slowed development, but the company would like to construct a carpentry and joinery plant, and would like to move its door and window manufacturing unit to a larger site, at which production could begin no later than 2021, he explained. Member of Parliament for Kiskunhalas Gábor Bányai (Fidesz) said that in his view it would seem that thanks to the rapid reaction on the part of enterprises and the government, the crisis could soon be over domestically. “According to feedback, all parts of the country are beginning to regain their momentum, and together with them Kiskunhalas is also working to reboot its economy”, he stated.
The 574.5 million-forint (EUR 1.63 million) investment being realised by Szabolcs-Szatmár-Bereg County-based Gémtech Ltd. can expect to receive over 287 million forints (EUR 816 thousand) in state funding. Managing Director Péter Nagy said the planned technology development project is aimed at increasing foreign sales, in addition to which the company is also planning to hire new employees in view of the fact that they also require the professional expertise of highly-trained employees. According to the region’s Member of Parliament, the previous major crisis in 2008 caused major damage because it was not immediately followed by action and initiatives. For this reason, Miklós Seszták (Fidesz) welcomed the fact that Gémtech showed initiative despite the crisis, providing an example to enterprises and a living to local employees.

Mosonmagyaróvár-based fittings manufacturer Teka Hungary Zrt. will be realising an investment of 188 million forints (EUR 535 thousand), towards which it will be receiving 94 million forints (EUR 268 thousand) in state funding. CEO János Luka said he expected increased competitiveness from the production modernisation project, and also trusts that the expected shortening of supply chains will provide impetus to foreign sales. He emphasised, however, that the increased demand that will appear following the crisis can only be exploited by enterprises that are already preparing for the upturn now. “The signs in Hungary are favourable, and the company’s foreign owners are also reporting on the fact that other states are experiencing the current crisis as a much greater blow”, he added. As the region’s MP, Minister of Agriculture István Nagy expressed his thanks for the fact that the funding has come at just the right time, and enterprises have made use of the opportunity. “The Mosonmagyaróvár plant, which used to be known as Mofém, has been part of the region for over a hundred years, while always successfully renewing itself”, he stated.

The Ministry of Foreign Affairs and Trade has been presenting certificates relating to the awarding of competitiveness-increasing funding since Monday of this week. The program is assisting applicant enterprises with immediate, non-returnable funding out of the domestic budget.

(Ministry of Foreign Affairs and Trade/MTI)