“The United States is the second most important investor in Hungary and its primary export market outside the European Union”, Minister of Foreign Affairs and Trade Péter Szijjártó said on Thursday in Budapest at the Business Meets Government Summit business people’s meeting organised by the American Chamber of Commerce (AmCham).
The Minister of Foreign Affairs and Trade highlighted the fact that there is tough competition between countries for investors within the global economy, and this is one of the reasons why it is important that according to the latest report by the World Economic Forum Hungary has moved forward nine places in world competitiveness rankings.
Mr. Szijjártó pointed out that the Hungarian Government has introduced man measures in recent years to reinforce the country’s competitiveness, such as the fact that Hungary has introduced the lowest level of corporation tax in Europe, in addition to which the Government’s decisions to support research & development are also improving competiveness.
Mr. Szijjártó reported on the fact that a few days ago he had held successful negotiations in the United States and met with the representatives of 31 American companies, with whom he also reviewed their plans for investment.
The Minister highlighted the fact that the United States is a natural and strategic ally of Hungary, and business cooperation between the two countries is a real success story. “American investments can operate and perform their activities in safety in Hungary”, he declared.
According to Mr. Szijjártó, businessmen at his meetings in the United States also indicated that the greatest current challenge and question facing the Hungarian economy is the labour market situation.
“There are currently more than 4.4 million people working in Hungary, and the number of people in employment has increased by 700 thousand since 2010, 500 thousand of whom are employed in the private sector. The rate of unemployment is 3.5 percent, which according to some economists can be regarded as constituting full employment”, the Minister highlighted.
Mr. Szijjártó also spoke about the fact that the Government is introducing more and more measures aimed at solving Hungary’s labour-related problems, and it is in this spirit that the secondary school and higher education systems are being reorganised, dual training is becoming more widespread and accommodation-related benefits are being increased and modified.
Mr. Szijjártó told reporters that he has drawn the American business people’s attention to the fact that the countries of the Visegrád Group (V4) are engaged in strong cooperation within the European Union and are developing strongly, with the V4’s collective level of exports the third highest in the EU.
New measures aimed at increasing competitiveness will also be introduced next year, for instance the Government is expected to further benefit employer contributions in comparison to original plans from the beginning of next year, in addition to which there will also be further favourable changes with relation to accommodation benefits to facilitate labour mobility, he indicated.
“Enterprises in Budapest that realise investments based on research & development will also be receiving financial support, in view of the fact that Budapest is becoming an increasingly powerful research & development and innovation centre in both regional and European comparison”, the Minister highlighted. “For this reason, investment projects that are based on research & development will be receiving 25 percent in cash funding from 1 January”, he added.
“In addition, at a national level not only can new job-creating investments expect to receive funding, but cash funding will also be provided to enterprises that maintain and/or improve competitiveness. Furthermore, the Government is also working to provide a solution to labour problems through reforming the education system and facilitating labour mobility and expanding accommodation supplements”, the Minister of Foreign Affairs and Trade listed.