German ambassador: German companies fear Hungarian government pressure
Germany’s ambassador in Budapest spoke to RTL Híradó about government pressure. Ambassador Julia Gross says more German investors want to come to Hungary, but are concerned about “certain measures of the Hungarian government”.
Mixed feelings
444 writes that the diplomat said that German companies had a very strong presence in Hungary, employing more than 300,000 people. Thus, it really matters what kind of environment they can operate in. She added that it is in the common interest that these companies flourish. They are satisfied in many sectors, but not in all. She thinks that the various sectoral special taxes or issues relating to planning and licensing procedures affect certain sectors, which German companies object to. Gross said these problems are being brought to the attention of the Hungarian government and Brussels. These are not only concerns for Germans but also for other foreign investors operating in Hungary.
Special offers
Rtl reported that in April, German companies with interests in Hungary gave interviews to Spiegel. Many of them asked the paper not to disclose their names. They said that the period when the previous Orbán-led governments lured them to the country with various tax breaks and helpful government officials is over. Instead, they are now being squeezed out as German interests and are receiving “irresistible offers” from pro-government circles. The ambassador also said that she got in touch with the Hungarian government to resolve the problems. It is a common good to have great and successful German companies operating in Hungary. Gross thinks that there are many German businesses wanting to come to Hungary, but they would like to know what to expect exactly.
Discriminatory taxes
According to an August article in the Frankfurter Rundschau, “unbelievable things are happening in the middle of the EU”. More and more foreign companies operating in Hungary are reporting a politically-driven system aimed at expropriating them. To get a clear picture, the newspaper spoke to several companies in several fields. They cite, for example, discriminatory special taxes that only affect foreign companies.
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The word has been out now for quite some time about Fidesz mafia style expropriations of German companies. Why would any German company want to tie its’ capital up in such a shadowy and risky business environment? You can’t trust the Hungarian government if you are a foreign investor. The Russians and the Chinese will come because they are long-time experts of coercive tactics particularly through their loans as leverage against the Fidesz government should the government be stupid enough to harm them.