Hungary’s government plans to introduce an economic policy aimed at stimulating the flagging economy by encouraging foreign companies to invest in the country, Gordon Bajnai, the economy and national development minister, told a news conference on Tuesday.
Bajnai said details of the plan would be released next week.
He said that the government was in consultation with major industrial players on the strategy for the vehicle industry.
Areas in which the government can provide support, such as vocational training, subsidies and steps to stimulate exports, are the subjects of discussion, with the view to ensuring that the vehicle sector remains a determining factor in the economy over the long term, he said.
Most of Hungary’s vehicle industry output is for export, Bajnai said. The industry employs around 110,000 people who produce 20 percent of Hungary’s exports and 17 percent of total industrial output, the minister said. The vehicle industry is crucical to Hungary, he added.
“In all events, steps must be taken in order to palpably ease the situation for companies and employees,” said Bajnai.
ITD Hungary’s director Csaba Kilian noted that several thousand workers had been made redundant in the car industry and other sectors over the past couple of months.
Areas less affected by the crisis include the pharmaceuticals industry, biotechnology, software production and the services industry, Kilian said. Important investment plans in these areas will be announced in the near future, he added.