The European Union can only remain competitive if its Member States preserve and strengthen their competitiveness, the Justice Minister said.

László Trócsányi said at a conference organised by Europe Direct Szeged and the European Public Law Organisation (EPLO) that Europe’s economic strength manifests itself in the economic strength of its Member States, while its political strength in the political commitment of its Member States. He added that this requires permanent coordination which falls within the remit of European institutions.

Mr Trócsányi pointed out that an appropriate legal environment is crucial for investors. The law must help, not hinder economic growth; this is why the reduction of bureaucracy within the EU and deregulation are important tasks.

From among measures adopted in Hungary in recent years, the Minister highlighted the law on arbitration which is capable of giving a new boost to this method of the settlement of legal disputes in Hungary.

It further boosts Hungarian competitiveness that, based on international examples, the most important legal codes are now available in English. This work continues with the translation of further laws, the politician said.

The Minister stressed that insolvency law is closely related to competitiveness. While the establishment of a company takes just a few minutes, the closing down of businesses is a long process, he added.

Preparations for the drafting of new legislation is already under way with the participation of the experts of the European Bank for Reconstruction and Development. One of the most important goals of the new law is to facilitate the reorganisation of businesses which struggle with payment difficulties, but are otherwise operational.

Mr Trócsányi said the approach to investments from third countries is a highly sensitive issue. The EU endeavours to protect its own internal market; at the same time, we need the investments of other global players for which there is keen competition in the world. There are, however, strategic sectors in which it is extremely important to control investments, he said.

(Ministry of Justice/MTI)