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Management sentiment at German companies operating in Hungary improves this year

The index compiled by the German-Hungarian Chamber of Industry and Trade measuring management sentiment at German businesses in Hungary rose to 20.1 points in Q1 2011 from -2.5 points on average in 2010 and from a series low of -29.5 points in 2009, chamber Chairman Tamás Vahl said on Tuesday.

Most companies surveyed deem their business prospects to be positive due to increasing export demand in the processing industry.

Most of the 144 company managers surveyed between February 1 and March 1, 2011 said they would like to hire more workers and increase investments, while fewer expressed dissatisfaction with Hungary's tax system than in 2010.

Vahl said that negotiations have begun between the government and German companies operating in Hungary regarding the extraordinary taxes imposed on certain sectors of the economy, adding that Hungary's European Union presidency and the process of formulating a new constitution have prevented political officials from focusing on the issue until now.