Hungary doles out huge grants to businesses compared to EU average
Hungary's state subsidies for businesses are the second highest in the European Union after Malta in proportion to GDP, said business daily Világgazdaság on Tuesday.
Last year Hungarian businesses received €1.6 billion in state supports, equivalent to 1.83% of GDP. This figure excludes subsidies for railways, which amounted to €421 million. Further, the proportion of grants has risen in the last few years - in 2000 they accounted for just 1.2% of economic output. The trend in Hungary runs contrary to the EU's.
In Germany grants take up 0.90% of GDP, in Poland 0.82% while in Britain they account for just 0.26%, said the paper, quoting a European Commission report published on Monday. While in the rest of Europe the range of grants became more diverse and more money was devoted to investments in the environment and R&D, Hungary's subsidies stuck to traditional areas such as farming, with 35% of the cake going towards farmers compared to the EU average of 26%. (english.mti.hu)
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