Orbán cabinet gets rid of foreign competitors in this skyrocketing economy branch – UPDATED

In the last few months, Spanish, Danish and German companies would have invested in Hungary to extend their portfolio in the skyrocketing solar power industry. However, the government introduced a new regulation which makes it almost impossible for a foreign company to invest in Hungary.

According to 24.hu, the Hungarian state has preemptive rights concerning the solar power industry, provided a foreign company aims to buy a Hungarian firm active in the sector. The decision-maker is the energy minister, so it is almost impossible for foreign companies to enter the market.

Protectionism in that regard is not entirely new in the European Union. For example, Germany and France both protect their solar energy market, but the rules are clarified in their legal system. Therefore, there is theoretically a good chance that foreign companies might become successful there, 24.hu wrote.

In Hungary, the biggest solar plant owners are government-close businessmen. In the first position, there is a group of companies connected by their seat: 122–124 Pasaréti Street, an office building in Budapest’s prestigious Buda region. That is the headquarters of István Tiborcz’s BDPST Group. Mr Tiborcz is PM Orbán’s son-in-law.

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Government-close companies in the skyrocketing solar energy sector

Nine companies operate in the building, owned by three private equity funds (Voyager One and Two, and Central European Opportunity). However, these companies provide 2% of the entire Hungarian electricity production. All were started by Adnan Polat, a Turkish billionaire who regularly makes deals with Mr Tiborcz.