German investors fed up with Orbán’s policies: will they leave Hungary?
According to Bloomberg, German investors in Hungary are discontented with PM Orbán’s policies. They say the Hungarian government is trying to oust foreign companies in several business areas. Furthermore, the ever-changing regulations do not provide a favourable background for their long-term plans. Will Audi, Mercedes, BMW, and Rheinmetall leave in the long run?
According to atv.hu‘s summary of Bloomberg’s article in the issue, the “love affair” between the Hungarian political leadership and the German investors may end. And that may undermine the economic development plans of the Orbán cabinet.
Cold war starts between the Hungarian government and the German investors?
Based on the American news outlet, after the fall of Communism in Eastern and Central Europe, there was a special relationship between the German capital and the Hungarian governments.
Therefore, German carmakers like Audi, Mercedes-Benz, BMW, and weapons maker Rheinmetall came to Hungary and found favourable conditions to generate huge profits thanks to the hardworking, trained Hungarian workforce and the favourable conditions the Hungarian governments created.
However, the Orbán cabinet lately tries to push out foreign companies from “an ever-expanding swath” of the Hungarian economy. And that is what German investors do not like.
“The situation for foreign investors in Hungary is ‘frightening’,” says the deputy chairman of the Berlin-based German Eastern Business Association.
Trump will be Orbán’s new friend instead of the Germans? American conservatives came to Hungary, Trump sent a video message praising Orbán. Photo: MTI/Koszticsák Szilárd
What do they complain about?
German investors are especially “pissed off” because of the ever-changing legislative environment, the extra taxes and regulatory pressure. For example, the Hungarian government started a “cold war” with German retail chain Spar this year. About the last “round” of that “war” we wrote in THIS article.
Bloomberg believes the timing of entering into a conflict with the German investors could be better. That is because the Hungarian economy is struggling (HERE), and German investments plunged by a third between 2021 and 2024. Finally, there is a rising star winning the hearts of the opposition (and even Fidesz) voters. Péter Magyar may even threaten Orbán’s granite-solid system in the long run.
One of Péter Magyar’s mass protests in Budapest. PrtSc: YouTube/Telex
Dobrev-Scholz “summit” is a bad sign for Orbán
There is an additional sign that the German-Hungarian political relationship is dealing with issues. Klára Dobrev, the shadow prime minister of Former PM Gyurcsány’s Democratic Coalition, met with German chancellor Olaf Scholz.
She shared a photo with the chancellor who met with PM Orbán behind closed doors before but did not issue a communiqué about what they talked about. Meanwhile, Dobrev said they agreed they would never become allies with powers building on hatred and division. “Because they are threatening Europe’s unity, endangering democracy and everything we, Social Democrats are fighting for”, Dobrev concluded.
Macron did not meet with opposition leaders “like that”
This is not the first time DK’s European party-list leader and the wife of Gyurcsány met with Scholz in 2022, infostart.hu wrote.
Scholz’s meetings with Dobrev show clearly that the German-Hungarian relationship could be better. For example, President Macron visited Hungary before the 2022 general elections but met with the opposition leaders only at the French Embassy in Budapest, and they sat on a couch, a symbol that the French leaders did not regard them as the leaders of Hungary.
French-Hungarian cooperation instead of continuing the ‘love affair’ with Germany?
His policy was advantageous for him. After the 2022 general elections, they became allies with Orbán in the European Union. Media wrote about French-Hungarian joint businesses, and Hungary sent a military mission to Chad, one of the last bastions of the former French North African colony.
Interestingly, Gáspár Orbán, PM Orbán’s only son, had been a member of that mission. He constantly tried to hide behind columns and hats from the cameras, but the media managed to take some photos of him in the war-torn African country. We covered that issue HERE.
Read also:
- Hungarian economy minister Nagy meets German counterpart in Berlin – Details in THIS article
- Groundbreaking ceremony for defence giant Rheinmetall in Hungary – click HERE for the photos and the details
Featured image: Viktor Orbán and Olaf Scholz in October 2022 in Berlin. Worried faces.
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7 Comments
Is it NOT the factual.
Investment, into Hungary, with it’s Economy is a “declining deeper” Mess – that those who REALLY know in the WEST view Hungary as a “lost cause” from an Investment of a FUTURE from the perspective that it is just being Absolute High Risk ???
Answer ; YES.
In the deteriotion of the Hungarian Economy, it’s ABANDONEMENT of Democracy, there humongous PROBLEMS with the European Union, the GLOBAL knowledge of Hungary, building at rapid pace it’s Partnerships with Russia and China – being DICTATORSHIPS and Ruled & Governed under Communism, is there the high PROBABILITY, that Western based companies could WITH-DRAW – close there Hungarian operations ???
Answer : YES.
The BASTARDIZATION of Hungary that has taken place under the 14 years its present Orban – Fidesz Government have been in Power, the DELIVERED state of Economic and Financial – DISASTER, this GOVERNMENT have DELIVERED on Hungary is APPALLING.
It will WORSEN as Hungary’s “means” to effect, bring about Stabilization of its Economy – IMPOSSIBLE.
Debt of Government in Hungary – Humongous.
Interest Rates remain to HIGH.
National Currency – will “collapse” sooner than later.
The WEST – will not SAVE – the Orban – Fidesz Government.
Business in this country will be limited for the most part to the Russians and Chinese because those corrupt dictatorships have no problems operating on a corrupt basis in Hungary. See what happens if Fidesz tries to screw a Russian or Chinese company. Fidesz would never do it because those two countries have ways to make things very unpleasant for you.
I completely agree with Larry, if Fidesz believes that making deal Russian/Chinese businesses is good for Hungary, they are sadly mistaken.
When a person decides to go into business with the mafia, you know eventually that person will end up bankrupt.
China’s “intention” to build large car manufacturing plant, near Gyor, no doubt the Chinese President will have MORE to say on that in the very near FUTURE in his visit to Hungary, as guest of the Orban – Fidesz Government.
SPECIAL deal(s) granted by Victor Orban and his Fidesz Government, just adding more “layers” onto the mounting Relationship / Partnerships between Hungary & China.
If it PROCEEDS – its COMPETITION to the BIG current players in the Car and “other” Manufacturing Industry that are currently present, employing thousands of Hungarians, that the FUTURE could be QUESTIONABLE.
Orban – is RISKING it, that could BACK-fire on him, and SMASH a deeper BLACK Hole in the Economy of Hungary, that the Politics of the BIG Players, membership of the European Union, being DEMOCRATIC country’s, as opposed to the Communistic Governance of China – that ALSO could have continual NEGATIVITY on Investment into Hungary from Western Country’s.
What, globalist Germans cannot have their cake and eat it? Too bad, time for Germans to have a temper tantrum.
Auf Wiedersehen my ignorant German leeches. You have prostituted your economy and safety to the woke and dying West. There are other economies with whom Hungary can transact business.
Of course, Scholz and Dobrev are at the same page, both ultra-left traitors. It is clear what became of Germany under the rule of this communist woke government
Orbán and his gang are making a huge mistake to be in bed with the Chinese Communist Party.