The Government is planning to create a support programme for large corporations which will provide an incentive for them to embark on further developments, Nándor Csepreghy, Deputy State Secretary for Development Policy Communication at the Prime Minister’s Office told MTI, the Hungarian News Agency on Tuesday.

János Lázár, the Minister heading the Prime Minister’s Office said on 21 May that the Government will develop an aid system specifically targeting 100 large Hungarian corporations with regard to the fact that these businesses are not eligible for EU funds reserved for small and medium-sized enterprises.

Nándor Csepreghy told MTI on Tuesday that while large corporations are not eligible for cohesion funds under the relevant EU regulations, they represent a major economic force in Hungary, whether in terms of their contribution to the gross domestic product (GDP), or in terms of the number of workers they employ. The Government would therefore like to develop a programme which would make additional funds available, or would create an opportunity which would provide an incentive for large corporations operating in Hungary to conduct developments.

The Deputy State Secretary drew attention to the fact that while these developments directly emerge at the given large companies themselves, they indirectly also reinforce the small and medium-sized businesses which are in contact with them.

"There is no list yet which contains 100 specific large corporations; we are merely talking about a number in this magnitude", Nándor Csepreghy said. He added that the companies in question will also include businesses with which the Government has already concluded strategic cooperation agreements, while there will also be others.

Grants may be provided for large corporations from local fiscal funds, the Deputy State Secretary pointed out. At the same time, he highlighted that no decision has been taken yet regarding the specificities of the programme, and it is necessary to explore the capacity of the budget as at any time. Mr Csepreghy pointed out that the grants „will not necessarily only take shape in the form of monetary grants ".

The Deputy State Secretary also told MTI that they are not yet engaged in negotiations with specific companies; at this point in time, consultations are ongoing within the Government, and a government decision may be adopted on the issue within a few months.

(Prime Minister's Office)