Significant questions remain surrounding Hungary’s mooted “asset recovery” drive, yet a group of Hungarian economists has already advanced what would, by domestic standards, be a strikingly novel proposal: how to invest the reclaimed billions in a manner that generates substantial annual returns, facilitates the transfer of cutting-edge technology to Hungary, and supports the country’s most innovative firms.
A Norwegian-style fund with annual returns in the hundreds of billions
A newly published study proposes the long-term investment of several trillion forints in assets expected to return to state ownership. Commissioned by the Free Market Foundation and authored by economists Levente Nagy-Pál, Dr László Vértessy and József Katona, the report argues that such funds should not be used to plug budget deficits, but instead be channelled into a sovereign investment fund modelled on Norway’s, hvg.hu wrote.
Estimates suggest that assets worth between 3,000 and 5,000 billion forints could revert to the state in the coming years. Meanwhile, opposition figure Péter Magyar has claimed that as much as 60,000 billion forints (EUR 132 billion) has flowed into private hands via public procurement schemes — though many of these cases are now time-barred, and others resulted in genuine investments.
Rather than spending the recovered sums outright, the authors contend that investing them would yield far greater long-term benefits. At an annual return of 4–6 per cent, the fund could generate revenues of 200–300 billion forints each year.
Under the proposal, the fund would incorporate a wide range of assets, including state property transferred to public-interest asset management foundations, public capital invested in private equity funds, holdings linked to MBH Bank, the remaining assets of the Hungarian central bank’s foundations, 4iG’s 1,300-billion-forint contract portfolio, and resources associated with the National Cultural Fund. The list, the authors note, could be expanded further.
Following Norway’s lead
The study points to Norway’s Government Pension Fund Global — the world’s most prominent sovereign wealth fund — as its principal model. Rather than spending its oil and gas revenues immediately, Norway invested them to build national wealth over the long term. Similar funds now operate across the Middle East, Asia and Europe.
The proposed Hungarian vehicle would be named the National Innovation and Future Capital Fund. The state would act solely as owner, with oversight entrusted to an independent board or supervisory body, while investment decisions would be made by a professionally selected management team operating under competitive conditions.
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Between 60 and 70 per cent of the assets would be allocated to stable, income-generating investments capable of delivering the targeted 4–6 per cent annual return. A further 20–30 per cent would be directed towards strategic growth sectors such as artificial intelligence, semiconductor manufacturing and other advanced technologies. The remaining 10–15 per cent would support Hungarian start-ups.
Half of the expected annual returns would be reinvested in the fund, while the remainder could be deployed by the state for strategic purposes. The study identifies priority areas including artificial intelligence, biotechnology, the energy transition, digitalisation, as well as the development of education and healthcare.
According to the authors, the fund could begin operations within roughly eighteen months, following a preparatory phase of no more than three months. In their view, it would not only serve to expand Hungary’s national wealth but also help rebuild public trust and underpin long-term economic development.
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Check out the full document.
It doesn’t look like there are many people who are going to have buyer’s regret with the new government. But….But… What about sovereignty! Sovereignty! Oh, they are going to sell Hungary to “Brussels” to Brussels!. The sky is falling! Our beloved dictator Orban Viktor is out of power! What would we do without his direct line to the Kremlin to speak with Putin and Lavrov! Ha! Ha! Ha! Ha!. An international polls was done with nine EU countries plus Canada. Hungary was the only country where Putin and Xi polled roughly the same confidence level as Macron. Hungary was also the only country where confidence in the US went up with Trump in office. Everywhere else it declined dramatically. What a nation with a huge portion of completely brainwashed idiots but there is still hope for Hungary and it is on the right path finally.
Something I thought about recently.
In Star Wars, when Alderaan got destroyed, apparently there was a great disturbance in the Force because millions of innocents were destroyed along with it.
I’m not saying the former government was the Imperial side in that mythos, but as a matter of perspective in terms of your comment, if the evil Empire was brainwashing soldiers or conscripting them to work or fight on the Death Star, doesn’t it seem kind of weird that nobody mentioned even a small disturbance in the Force when they would have been blown up with the rest of the Death Star either time it happened?
Anyway, it’s a fictional, contrived, and otherwise only to muse about in the same way that I might speculate having made the same point to Mr. Orbán’s opponents in 1989, perhaps either him or Mr. Gyurcsány in about 2008 or so, and then in asking Mr. Orbán about his perspective on how his perspective has changed and why since 1989 or so, anyway.
I’m also very peaceful but I swear and sometimes yell a lot so it’s really about supermajorities and overwhelming scales and odds in the context of seeming binaries that might not always be as binary as they seem.
Evan M. Johnson – interesting commentary.
The reference to year 1989 – the date of 19th June to be exact in 1989 – and that of the name = Victor Mihaly. Orban.
This date & year to me is of vital importance as it was when Victor Mihaly. Orban “front and center” took to the podium in Heros Square and PREACHED his CREED – creating the platform exhibiting, communicating to the people of Hungary, to Europe and the Global World that could be said his Mandate – the political path he would PURSUE – his vision, to bring about change -broadsheet – being politically and “other” to Hungary.
I will not move my position, that Victor Mihaly. Orban in his “Pontificated” delivered in style speech on the 19th June 1989 – was advocating that DEMOCRACY was the way forward for Hungary after the “dark” years 1945-1989 under Russian Governance / Rule being Communism.
The Wall had of course FELL.
In my hundreds of commentaries that I have contributed into media outlets globally over the course of the past (5) five years – that date, like the words of Franklin Delano Roosevelt, the bombing of Pearl Harbour by the Empire of Japan – 7th December 1941 – the 19th June 1989 what came out the mouth of Victor Mihaly. Orban – we Hungarians / Hungary will live with us in Infamy.
Victor Mihaly. Orbans relationships in-side the European Union – with Russia and China and the United States of America, post the United Kingdom exiting from the European Union – his movement away – his manipulation of “core” practices of DEMOCRACY – still somewhat remains a riddle to me wrapped in a mystery inside an Enigma.
Victor Mihaly. Orban – what he took over and POWERED over – in his (20) twenty years as the Prime Minister of Hungary, the state of Hungary he inherited when first elected Prime Minister – to what he DELIVERED to Hungary some (20) years on – the state he left Hungary as a country to represent – history will not rightly be KIND to Victor Mihaly. Orban.
In his HUMILIATION of being thrown voted out of office by the citizens of Hungary, through there right to vote under DEMOCRACY – the name Victor Mihaly. Orban and that of the Political Party of his Leadership & Government being Fidesz – they left our country in a cataclysmic MESS.
“Now, this is not the end.
It is not even the beginning of the end.
But it is, perhaps, the end of the beginning.”
Victor Mihaly. Orban and that of Fidesz – right of the citizens of Hungary that we seek Justice through what was “heaved” on us over the course of the past (20) twenty years – what was STOLEN from us.
Greed, Selfishness being EXPLOITED, lied to, abused – seeking through Justice a return to us in the millions individually and as a country – Hungary – what was STOLEN from us.
Hungarians – in our Seeking of Justice – we have a RIGHT that in our pursuit of Fairness, of Moral Rightness, or be it Legal redress when knowing as we do, that grows in us KNOWING the wrongs HEAVED on us, by the Victor Mihaly. Orban led “heinous” Fidesz Hungarian Government.
Hungarians, our RIGHT in the demanding of accountability, in striving for equitable treatment, using as we will NEED to do, that HOPEFULLY backed – supported by our present Government, not forgetting hopefully – they our Tisza Government under Prime Minister – Peter Magyar – run there own cases/actions – against the Victor Mihaly. Orban “mob” – that by the use of the Legal system to correct/rectify inequality and ensure that the WRONGDOERS – Victor Mihaly. Orban and his “mob” – face appropriate consequences.
Please start with Orban’s son in law, unless, of course he moved his billions to the U.S. for “educational” reasons.