Hungary Trends – Business and financial news from the previous week

Budapest (MTI) – See below MTI’s main business and financial news from the previous week:

GOVT FLESHES OUT PLAN FOR PAY RISE-LINKED PAYROLL TAX REDUCTIONS

A reduction in payroll taxes linked to pay rises could take place over 2-3 years, according to the government’s plans, Economy Minister Mihaly Varga said. A basic reduction in payroll tax would be followed by further cuts that track pay increases after a period of two years, according to the plans. The final plan could take shape as soon as next week and the basic reduction introduced in January.

DECLINE OF CONSTRUCTION SECTOR OUTPUT SLOWS FURTHER IN AUGUST

Output of Hungary’s construction industry fell by an annual 9.0 percent in August, decelerating from declines of 17.6 percent in July and 16.2 percent in June, the Central Statistical Office (KSH) said. Output of the buildings segment rose 7.0 percent. Output of the civil engineering segment dropped 23.9 percent from a high base.

MEMORANDUM ON SETTING UP BRITISH-HUNGARIAN BUSINESS COUNCIL SIGNED IN LONDON

A memorandum on the establishment of the British-Hungarian Business Council was signed at the Hungarian embassy in London. The establishment of the council is a guarantee to Hungary that the UK’s exit from the EU will not create an obstacle to further British investments in Hungary, said Minister of Foreign Affairs and Trade Péter Szijjártó.

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RICHTER SIGNS TECHNOLOGY TRANSFER AGREEMENT WITH DM BIO

Hungarian drugmaker Gedeon Richter announced it signed a technology transfer and licensing agreement with DM Bio on the development and commercialisation of DM Bio’s biosimilar monoclonal antibody, Trastuzumab. Richter is getting exclusive distribution rights for Europe, the CIS region and Latin American countries and is also obtaining the pilot technology for further development.

HUNGARY, KAZAKHSTAN ESTABLISH STRATEGIC COUNCIL

The Hungarian-Kazakh Strategic Council was established to make proposals and recommendations to support progress, focusing on the development of bilateral economic ties, Economy Minister Mihaly Varga said in Astana. The Council will also weigh the possibility of tapping national and international funding sources.

LISZT FERENC PASSENGER NUMBERS SET TO CLIMB OVER 11 M

Passenger numbers at Liszt Ferenc International are expected to climb by 8.9 percent to 11.2 million this year, Kam Jandu, Chief Commercial Officer of operator Budapest Airport, said. In August, passenger numbers climbed by 10.1 percent, he noted.

TENDER FOR M3 REPLACEMENT BUS SERVICE INVALIDATED

Hungary’s Public Procurement Arbitration Board (KDB) invalidated a tender called by the Budapest Public Transport Centre (BKK) for replacement bus service while the M3 metro line undergoes a renovation. The KDB said BKK’s tender invitation failed to provide potential bidders with enough information to allow them to decide whether to participate in the tender. Budapest Mayor Istvan Tarlos said he was “astonished” by the KDB’s decision. KDB’s reasoning for invalidating the tender — the failure to clarify that providing bus service includes bus drivers — is “unprecedented arrogance”, he added. Read more HERE.

MEDIA MARKT TO OPEN STORES AT TESCO HYPERMARKETS IN HUNGARY

Electronics retailer Media Markt will open two stores in Tesco hypermarkets in the west of Hungary, the companies said. Media Markt will open a 600sqm store in the Tesco hypermarket in Gyor and an 800sqm one in the Tesco in Veszprem.

HUNGARIANS’ PERSONAL INCOME CLIMBS ALMOST 7 PC

Hungarians’ personal income rose by 6.7 percent to 10.065 trillion forints (EUR 32.6bn) last year, data from the National Tax and Customs Authority (NAV) showed. About 9.250 trillion forints of the income was from wages and salary.

RONALDINHO SHOWCASES HUNGARIAN SPORT TEQBALL

The game of Teqball, a Hungarian invention that tests footballers’ concentration, skills and stamina, was showcased by the Brazilian great Ronaldinho at a press conference in Budapest. Teqball players pass a football across a gently curved surface that resembles a reinforced ping-pong table. Contact with the other player or the board is not allowed, minimising risk of injury.

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Source: MTI