Government sends home all foreign construction companies from Hungary

This was not the first time that Hungary’s construction and transport minister, János Lázár, talked about sending home all foreign companies active in the sector. Yesterday, he highlighted again that it would be better for them to just sell their subsidiaries and leave Hungary. War on the horizon between the Orbán government, the firms and their home countries, especially Germany and Austria?

According to Blikk, a Hungarian tabloid, János Lázár, Hungary’s construction and transport minister, cleared at a yesterday press conference that foreign companies had no place in Hungary. He added the government had to end that the Hungarian economy works with foreign building materials and a high import rate in the construction sector.

He said that the construction sector was strategic in Hungary. He added that between 2010 and 2022, the government invested in the sector more than HUF 28,000 billion (EUR 73.6 billion based on today’s exchange rate), but 50% of the money went abroad.

French, Austrian, German construction companies in trouble

The time is over that Hungary struggles from a French, German, and Austrian conquest in the construction sector, he highlighted. Furthermore, he said it was in vain for German, Austrian and French construction companies to lobby in Western Europe or Hungary. They should sell their subsidiaries to the Hungarian state or businessmen, and leave the country once and for all.

He said that 50% of the building materials come from imports. Foreign companies take 80% of the raw materials from abroad. Provided they do not import, most of the raw materials are produced by foreign companies in Hungary. That has to be changed.

He cleared that in Hungary, Hungarian entrepreneurs should use Hungarian building materials. That is how the country can become powerful.

Read also:

Beautiful art nouveau hotel of Hungary is finally being renovated – Read more HERE
One of Hungary’s largest universities to expand with a new campus in the city centre – Details in THIS article

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6 Comments

Norbert says:

24/11/2023 at 14:37

Mr. Lázár speaks like a mob boss: “You have a nice business. Maybe you should consider selling?”

Politicians dabbling in crony capitalism? It would be so much better if only Hungarian parties would respond to tenders… The margins for construction work are apparently healthy in Hungary, however, that hardly surprising if there is “a little something extra” in it for the usual winners.

https://www.merriam-webster.com/dictionary/crony%20capitalism

Mr. Lázár is also actually (inadvertently?) confirming Der Spiegel’s reporting:

https://www.spiegel.de/international/business/mafia-methods-viktor-orban-ups-the-pressure-on-german-companies-to-leave-hungary-a-cf38f4d2-1576-4f55-896a-b65f19542f43
Larry says:

24/11/2023 at 20:49

Fidesz is engaging in total fascism. Home construction will now all go into the corrupt hands of those connected to Fidesz which will reduce competition and thus raise prices. That is constantly the game plan of Orban and his buddies. They will control everything and make sure they can siphon as much as they can out of these businesses into their pockets. Hungarians pay for it all through higher prices. My relatives went to Graz for a weekend and spent their time shopping for all kinds of basic goods that are more expensive in Budapest. This is what Fidesz does to Hungary. Lazar treats everyone like complete idiots talking about everyone using “Hungarian building methods.” What would that be – thatched roofs? The best building method for home construction is the Passive House which is a German design that ensures maximum energy efficiency. There are companies building these units in Hungary right now. Fidesz is a collection of clowns.
Max Headroom says:

24/11/2023 at 22:55

But the EU should continue to invest in Hungary.
Larry says:

25/11/2023 at 01:24

My earlier comment contained one point based on a misreading of the article but I maintain my overall criticism of Fidesz’s fascist methods applied to the construction industry. Hungary will suffer. To add, Lazar says that Hungarian building materials should be used. Hungary is a geographically small country with a limited diversity of manufacturing. If you are limited to Hungarian building materials what if materials coming from another source are much cheaper? What does that do to your construction price? That’s why we have trade between countries and an EU trading zone. Some things are produced more efficiently and cheaper in some places than others. Hungary exports what it produces cheaper and Hungary imports what is cheaper than if it were produced in Hungary. Construction costs are going go much higher under Fidesz. My condolences to Hungary.
Look at the BIG Picture - Visionary: says:

25/11/2023 at 06:17

We read of another example, from the Orban Government, this time Mr Lazar, behaving in line with what has occurred, the eradication of friendships relationships with other country’s that has just been repetitive coming out of the Orban Government.
The line taken by Lazar, just highlights the narrow minding thinking process, the lack of ability of this Minister, and the Orban Government, that continuously fails to look at the big picture.
Norbert says:

26/11/2023 at 23:13

@Larry – this is easy. You just overpay, but you work with trusted people, so that is then OK. As we did, during COVID.

https://www.nytimes.com/2021/03/12/world/hungary-sinopharm-covid.html

“The government of Hungary assigned a contract with a net value of 150 million euros to a company with registered capital of €9,000” ($10,700).”

And we obviously paid significantly more for something that turned out to be a lot less effective. For all the right reasons, I am sure!