Despite the various factors that have caused a deterioration in Europe’s competitiveness, central Europe has managed to progress in the opposite direction thanks to its economic and security polices based on common sense, with Hungary’s government making every effort to ensure the security of people and businesses, Foreign Minister Péter Szijjártó said on Thursday.
The Hungarian model has proven that it is possible to pursue economic growth simultaneously with fiscal discipline, Szijjarto said at the opening of a Hungarian-Italian business forum in Milan.
Hungary has based its economic policy on two principles: “work is the basis of success and merit” and “the state will not offer money for nothing”.
State benefits are offered in the form of tax allowances and people who expect help from the Hungarian state can get it through the remuneration they get for their work, Szijjártó said.
This policy has helped Hungary “become part of the solution instead of the problem in Europe”, he said.
Hungary participates in a “fierce global fight for investors”.
Among the economic considerations in support of Hungary he cited the lowest corporate tax rate in Europe and said that having one of the continent’s lowest personal income tax rates also contributed to the competitiveness of Hungary’s economy.
Hungary has the most flexible labour regulations in Europe,
taking into consideration both employee and employer rights. The education system has been transformed in a way to ensure training adjusted to the demands of the economy and the labour market, he said.
Hungary’s foreign policies focus on economic diplomacy and the task of foreign policy is to recognise and fulfil economic interests.
The economy is “on the threshold of a new era” with close to full employment, so job creation focuses on high value-added and R+D-based investments, he said.
Hungary’s Eximbank has opened a 510 million euro credit line to support cooperation between Hungarian and Italian companies, he added.
As we wrote yesterday, foreign Minister Péter Szijjártó discussed joint action against the persecution of Christians and the causes of migration with his Italian counterpart Angelino Alfano in Milan on Thursday.