Hungarian government is pressuring foreign entrepreneurs - expert speaks plainly

Hungarian government is pressuring foreign entrepreneurs - expert speaks plainly

Hungary is seen as a deviant in the EU, especially when it comes to migration policy. China now wants to use this to expand its influence in Europe. Among other things, the Hungarian government is putting economic pressure on foreign entrepreneurs from sectors such as the cement industry through increased special taxes. This makes the plants unprofitable and offers to take over from Hungarian interested parties suddenly appear. Viktor Orbán's government is seeking to get "strategic industries" into Hungarian hands, with the new owners often close to Orbán. This approach has a negative impact on the investment climate in Hungary and the satisfaction of German investors is decreasing.

According to an article by amp.zdf.de, the investment climate in Hungary is tense due to the Hungarian government's approach towards foreign companies. The cement industry and retail are particularly affected. The increased special taxes put a strain on the factories and profit margins and lead to takeover offers from Hungarian interested parties. The government is also striving to have “strategic industries” in Hungarian hands, which would give new owners close to the prime minister a chance. This has led to the investment climate in Hungary becoming worse and the satisfaction of German investors decreasing.

These developments can have a significant impact on the market and the financial industry. Uncertainty for foreign investors is increasing as the risk of business disruption and takeovers increases. This may result in investments in Hungary being held back or stopped altogether. In addition, companies in the affected sectors could find themselves forced to restrict or completely terminate their business activities in Hungary.

It is important that the EU Commission takes action and takes measures to restore investment security in Hungary. A clear position towards the Hungarian government and the enforcement of European values ​​and the rule of law are crucial to restore the trust of foreign investors and attract new investments.

Source: According to a report from amp.zdf.de