The government has subsidized 34 big foreign investments worth a combined €545 billion since it started considering investments for support on a case-by-case basis in the middle of 2004, Economy and Transport Minister János Kóka said in Thursday's issue of business daily Világgazdaság.
The subsidies have accounted for slightly less than 10% of the value of the investments, he said.
Earlier, state subsidies for foreign investments were determined using a formula based on the size of the investment, the number of new jobs and the level of development of the region. Under the new system, the government may determine the subsidies at its own discretion on a case-by-case basis. The subsidies may include cash, tax breaks and in-kind contributions such as roads. Because of the investments the government was able to attract with the subsidies, 16,000 jobs have been created, Kóka said. The subsidies have resulted in more FDI, more higher added-value production, more exports and more jobs in underdeveloped regions of the country, he added.