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45,292 EUR – this is the average sum the Hungarian government gave to large enterprises to create a new job
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52 companies received 105 billion HUF (almost EUR 300 million) from the Ministry of Foreign Affairs and Trade distributing the allowances given by the government to large enterprises. Nobody knows the details of the process only the result: how much money a company received and how many new jobs it promised in return.
According to g7.hu, the altogether sum of the corporate tax the Hungarian budget got from the companies was 303 billion HUF which is 1/3rd of the amount mentioned above. Meanwhile, for example, the Hungarian court system gets 136 billion HUF from the state budget. All in all,
the 300 million EUR the government gave to 52 companies is a very generous financial help.
Furthermore, most of those favoured companies are multinational ones even though the government always speaks about that they would like to support the Hungarian enterprises. Interestingly, not only the volume of the financial support has been increasing for years but also the average money the government pays for creating one new workplace.
- Foreigners need ministerial authorisation to acquire shares in Hungarian companies
- Over 8,000 companies apply for wage support, Hungarian companies get grants
- Forbes: The most valuable Hungarian companies
- WOW! Three Hungarian companies among the fastest developing ones of Central-Europe
The only difference between the Socialist governments (before 2010) and Fidesz is that the latter gives such allowances to Hungarian companies, as well. However, all companies receive more so
multinational enterprises did not lose a penny
of course, totally makes sense… we have to pay people to keep jobs… Hungary is not an attractive investment destination, because things haven’t fundamentally changed during the last 20 years: poor infrastructure, bad schools, bankrupt healthcare, systemic corruption, too bureaucratic, too much cheating, overly complex taxation, high income taxes, unpredictable/arbitrary lawmaking, non-independent courts… in other words: too unproductive…
Govt’s support goes mostly to multinationals? Even in these days of severe downturn? Quite embarassing, especially when the govt’is in the hands of people who constantly say that they are against multinationals and in favour of Hungarian and small business ….