Economy & Policy

Economic Protection Action Plan significantly strengthened employment and the economy

The package of measures needed to survive the crisis due to the coronavirus epidemic is worth HUF 9.2-9.5 trillion.

Minister for Innovation and Technology László Palkovics explained that the economic protection action plan is basically a package of measures that are necessary to survive the crisis period due to the epidemic; in total, the sources including direct state subsidies, services, and loan and capital instruments amount to HUF 9.2-9.5 trillion.

Of this amount, HUF 3-4 trillion, 20-21 percent of Hungarian GDP, has mainly been used to protect jobs, create new jobs and revitalize the economy. The government decided to support capacity and technology expansion and structural-change development projects that are already being prepared for the post-virus period. 

Now, the government is holding forums to measure the effectiveness and utilization of the action plan and other related government decisions, as well as map out what further measures businesses need. 

The minister recalled that last year’s 3.1 percent unemployment rate did not show a dramatic increase in May, increasing only to 4.4 percent. In June, more people were working again than in January or March 2019, he noted. The government has helped to alleviate the situation of those who have been affected by the epidemic with several measures including unemployment benefits, training support, reduced working hours, job creation and support for investments in various ways. 

Ferenc Szalay, the mayor of Szolnok, also reported that the entire county and the city of Szolnok have managed the epidemic situation well. Hundreds of companies in Szolnok took advantage of the opportunities provided by the economic protection action plan. Furthermore, Szolnok and the government have started to develop industrial parks within the framework of the Modern Cities program to exploit the opportunities created by the now completed M4 road from Budapest to Szolnok.

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