In line with EU state aid rules, the European Commission has approved a HUF 50 billion Hungarian program to compensate large companies for losses caused partly by the coronavirus epidemic and partly by restrictive measures imposed by the Hungarian government to curb the epidemic. Under the scheme, large companies can receive compensation in the form of direct grants by applying for support in any sector, with the exception of the primary agricultural sector and the fisheries and aquaculture sector.
FM Szijjártó wrote on his Facebook page: “After a long series of negotiations over almost two months, the European Commission has finally approved our request to be able to provide support to Hungarian companies above EUR 800,000 in order to increase their competitiveness.”
The protection of jobs and the size of the investments made by companies will be of paramount importance in considering how much each company receives. This means that after the government’s extremely successful investment subsidies, Hungarian companies will soon have access to another significant source of funding to protect jobs. The government will decide on the details of the new support program next week. It is estimated that between 50 and 100 companies will benefit from the support.