Orbán’s government has provided more financial support to multinational companies in 2018 than ever before.
The harsh rhetoric directed at multinational companies in 2010-2014 has since faded away. The Fidesz government now encourages foreign investors by offering substantial financial initiatives. During the Socialist era in 2004-2010, Hungary provided 129 billion in support to such companies. Meanwhile, in the last eight years, international companies have almost doubled their state revenues.
However, 2018 was a record year in almost every aspect. The government released a list detailing which companies received aid this year and according to the official statement, a total of 86.5 billion HUF (1 billion is forints is 3.2 million EUR) has been spent on international companies thus far. The government primarily supported companies that planned to invest in Hungary or make a new plant.
Since 2010, Fidesz has supplied these companies with 346 billion forints, creating more than 45,000 new jobs in the process.
In the beginning, the government’s fundamental goal was to promote job creation, reflecting its election promise to create 1 million jobs in 10 years. In fact, job creation has succeeded at such a rate that the economy now suffers from a shortage of workers.
On average, the government spent 9.8 million forints on the creation of one single job. Aside from 2016—wherein the government spent a little more than HUF 11 million—2018 was one of the most expensive years for job creation.
The largest beneficiaries in 2018:
- BMW received 12.3 billion to establish a plant in Debrecen
- 8.1-8.1 billion was spent on the Korean SK Battery Hungary Kft and Zoltek Vegyipari Zrt.
- 5.5 billion went to Krones Hungary Kft.
- 4.5 billion was given to Robert Bosch
Image: Hungary Today