Foreign Minister Péter Szijjártó attended the Monaco Economic Board’s conference on Tuesday, where he described the Hungarian political stability unique in Europe as an advantage. He pointed out that while in other countries governments change quickly and are fragile, in Hungary the same leadership has been in power for fourteen years, therefore it can be taken for granted that agreements will be kept.
“Hungary today offers the most favorable investment environment in the European Union, thanks to its political stability, which is unique in the continent, and its low-rate tax system,” the Minister said at the event on the country’s business and investment environment. In his speech, he noted that the situation in Hungary has been described by the European Parliament as a dictatorship, but the government “did not win its mandate by winning the lottery, but through elections, as a result of the democratic will of the people.”
He also cited Hungary’s tax rates, which are among the lowest in the EU, as a key factor in encouraging investment,
pointing out that corporate tax has been reduced to nine percent and personal income tax to 15 percent, and that a single-rate system has been introduced.
The Minister underlined that this economic policy is clearly working, as unemployment was 13 percent in 2010, and is now below four percent, while investment and export records are being broken year after year.
He also referred to the serious difficulties of recent years, saying that during the crises, the left-wing opposition had called for a return to aid-based economic policies, but the government insisted on financing the prevention of unemployment, and therefore launched a huge investment promotion program.
As a result, Hungary has emerged stronger from every crisis, as evidenced by the fact that it is one of the few countries in the world where more people were working after the COVID outbreak than before,”
he said.
Minister Szijjártó also touched on the challenges posed by the war in Ukraine, noting that the cost of Hungarian energy imports had risen by EUR 10 billion a year, causing inflation to jump to 27 percent, and that last year had been a year of fighting rising prices.
The Minister concluded by saying that thanks to a stable political system, the Hungarian government is in a unique position in the EU today to be able to say what it thinks. He said that this is why the government speaks openly about the importance of East-West cooperation, pointing out that last year, China was the number one investor in Hungary, with investments worth EUR 16 billion currently taking place in the country.
He added that this is largely due to the strong presence of German companies, as there is close cooperation between firms in the two countries. All three premium German car brands have factories in Hungary, while five of the world’s top ten electric battery manufacturers have set up plants in the country. He underlined that the government welcomes investors from all over the world and is ready to provide them with the best possible conditions.
Via MTI, Featured image: Facebook/Weerts Logistics Park
