Hungary will make it easier for companies to tap generous subsidies as Prime Minister Viktor Orban looks to trigger a recovery in the recession-hit economy.
(Bloomberg) — Hungary will make it easier for companies to tap generous subsidies as Prime Minister Viktor Orban looks to trigger a recovery in the recession-hit economy.
From Monday, the government will lower the investment value needed outside of Budapest to qualify for state aid to 1.2 billion forint ($3.4 million) from 4 billion forint currently, Foreign Minister Peter Szijjarto said in a Facebook post. Firms can ask for grants of up to 50% of the investment cost, he said.
Additionally, companies operating in Budapest will be eligible for subsidies after renewable energy investments, Szijjarto said on Sunday. A new state aid plan will also take effect for all firms that help the country’s green transition.
“The government’s job is to make sure that Hungary’s economy remains on a growth path in the future,” Szijjarto said.
Hungary’s economy faces a myriad of challenges, including an ongoing recession, a record year-to-date budget shortfall, as well as the European Union’s highest inflation rate and borrowing costs. Orban has also failed unlock crucial EU funds, which are suspended due to graft and rule-of-law concerns.
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