“In the dictionary of the Hungarian Government, patriotic economic policy is not a negative expression, because it practices this kind of economic policy itself”, Minister of Foreign Affairs and Trade Péter Szijjártó declared at the Investor of the Year Gala held at the Vigadó Concert Hall in Budapest on Monday.

At the Gala, which was organised by the Hungarian Investment Promotion Agency (HIPA), Mr. Szijjártó explained: “Important changes have occurred during the part year from both an economic and political perspective”, referring to the U.S. Presidential elections as the most important political change, where voters decided to entrust the country’s leadership to someone who practices a much more patriotic economic policy than previously.

“Instead of complaining about the decisions of the U.S. President, the Hungarian Government is introducing measures that will enable it to remain competitive in the upcoming years”, Mr. Szijjártó pointed out. “This is why it has introduced Europe’s lowest level of corporate tax at 9 percent, and reduced employers’ social contributions from 27 percent to 22 percent, which will continue to decrease next year”, he said.

The Hungarian Foreign Minister also explained that in future greater emphasis would be placed on technologically intensive investments that produce higher added value, and emphasis will shift from “Made in Hungary” to “Invented in Hungary”. “The question now will not be what they manufacture in Hungary, but what they are developing in Hungary”, he said.

The Government is striving to attract as many investments of a high technological level to Hungary as possible that are involved in research & development and based on innovation. It is in this spirit that the investment promotion system was also overhauled from 1 January and now also includes tax incentives for R&D investments. The only point of concern at negotiations is whether there will be enough available labour.

The Minister highlighted the fact that more investors than ever before chose Hungary as their investment destination last year; positive decisions were made with regard to 71 investment projects, which resulted in 3.2 billion euros of capital being invested in the country and in the creation of 17 647 new jobs. The HIPA was the most successful in the region both with regard to investment volume and the number of new jobs created, he stressed.

At the event, the Investor of the Year awards were presented jointly by Péter Szijjártó and President of the HIPA Róbert Ésik.

Each year, the Gala recognises companies that have realised the most significant investments. This year, the HIPA presented awards in six categories to enterprises that have invested a total of 1.5 billion euros and created 6000 new jobs. The HIPA pays particular attention to supporting and developing the supplier role of Hungarian small and medium-sized enterprises, and presents awards in two further categories to recognise these companies.

Mercedes-Benz Manufacturing Hungary Ltd. won the award for the year’s highest volume greenfield investment, while Samsung SDI Hungary Plc. won the award for the year’s highest volume expansion. LEGO Manufacturing Ltd. was recognised with an award for creating the most jobs. Flowserve Hungary Services Ltd. won the award for the year’s largest shared services centre (SSC) investment, while BP Business Service Centre Ltd. received the award for the largest SSC expansion. GE Hungary was recognised as the R&D Investor of the Year. The year’s best industrial park award was presented to the Debrecen Regional and Innovation Industrial Science and Technology Park, while the award for the Hungarian supplier of the year went to PEMÜ Plastics Plc.

(Cabinet Office of the Prime Minister/MTI)