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)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.