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Hungary to remove new jobs condition for investment subsidies

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Hungary's government will offer cash subsidies from October for private sec...

BUDAPEST - Hungary’s government will offer cash subsidies from October for private sector investments that use innovative technology, dropping a requirement that jobs must be created, the foreign minister said on Tuesday.

With a scarcity of workers limiting its old economic model of attracting foreign investment with cheap labor, Hungary is looking to transform itself into a capital-intensive economy to sustain high levels of growth. “If companies in Hungary introduce new technology, bring in new machinery, introduce new processes to maintain or upgrade competitiveness without creating new jobs they are eligible for the same cash incentive up to 50% of the volume of the new investment,” Foreign Minister Peter Szijjarto told a conference.

Szijjarto said that with no more than 5 million available workers, Hungary, which is strongly opposed to immigration as a cure for labor shortages, had to transform its incentive system for investments.

 

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