Since 2014, the Hungarian state has provided investment support to 123 German companies and is negotiating with another 25, said Minister of Foreign Affairs and Trade Péter Szijjártó at an online meeting of the German Industry Association on Tuesday.
The Hungarian government does not support social assistance but job retention as a solution to the crisis caused by the coronavirus epidemic. Thus, it supports investments made by employers, he said. The minister mentioned that the government is using EU funds to support companies’ developments up to EUR 800,000 or up to 50 percent of the project cost if it saves jobs.
To date, 904 companies in more than 30 industries have participated in the program. The Hungarian government has invested a total of EUR 1.2 billion and managed to protect 155,000 jobs, Szijjártó noted. Because the program has been such a success, the government has decided to launch another EUR 140 million investment incentive program, he added.
The minister further encouraged German companies to launch vocational training programs in connection with developments. In the case of an investment of at least EUR 5 million, they are entitled to a training grant of EUR 5,000 per student, and the government is committed to further tax cuts as well.
Germany is Hungary’s number one trading partner, as the country receives 28 percent of Hungarian exports.
Szijjártó was also pleased that, according to a survey of the German-Hungarian Chamber of Commerce and Industry, 60 percent of German companies operating in Hungary expect their business situation to improve in the next period.