Hungary’s policy of fostering closer economic ties with Eastern nations has brought tangible results, with the country benefitting from major foreign investments. Minister of Foreign Affairs and Trade Péter Szijjártó reiterated this stance at the announcement of a new investment by the Japanese electronics company Alpine, which is set to expand its operations in Biatorbágy with a 21-billion-forint development project. The Hungarian government is supporting the initiative with 3 billion forints in funding, facilitating the creation of over one hundred new jobs.
The investment will not only enhance Hungary’s export performance but also align with sustainable energy goals, as the new facilities will rely on renewable energy sources. Szijjártó emphasized that the automotive and electronics industries are increasingly interlinked, making such investments particularly significant for Hungary, which serves as a key hub for European car manufacturing. Over the past decade, the country has welcomed 172 significant electronics investments worth 9,000 billion forints.
Highlighting the economic importance of Pest County, the minister pointed out that unemployment in the region has dropped from 6.4 per cent to 3 per cent over the last ten years, while industrial production has surged from 2,500 billion to 7,000 billion forints. He stressed the need for continued industrial expansion, stating that ‘to maintain full employment in Hungary, we need new factories—this year, one hundred new factories are necessary.’ The Alpine investment is a step towards fulfilling this goal.
Szijjártó underlined that the Alpine expansion is another milestone in strengthening Hungarian–Japanese relations, noting that over 200 Japanese companies currently operate in Hungary, employing around 30,000 people. Over the past decade, the government has supported 72 major Japanese investments worth approximately 650 billion forints.
The minister framed these developments within the broader success of Hungary’s Opening to the East strategy, pointing out that the global economic landscape has changed dramatically. The once unipolar economic system has given way to a more balanced distribution of economic power, with Eastern countries not only catching up to but, in some cases, surpassing Western nations in technology, financial resources, and industrial development.
While in the 2010s 80 per cent of global investments originated from Western capital and only 20 per cent from the East, the current figures show a complete reversal. Hungary’s three largest investors in 2022 were all from Asia: China, South Korea, and Japan.
Szijjártó also noted the growing interdependence between Eastern and Western economies, with European companies heavily reliant on Asian suppliers for raw materials and critical components, while Asian firms benefit from European investments, technology, and market access. He warned against political interference in these economic ties, stating that ‘attempts to artificially separate Eastern and Western economies, as seen in Europe in recent years, are counterproductive.’
Echoing this sentiment, Tamás Menczer, a Fidesz MP and the party’s communications director, described 2024 as a ‘year of economic breakthrough’. Speaking at the Alpine investment announcement, he argued that Hungary’s economic strength—bolstered by foreign investments like Alpine’s—demonstrates the country’s resilience despite global crises and sanctions.
Menczer also announced that Hungary would launch Europe’s most extensive tax reduction programme, with a strong focus on families. Measures will include doubling child-related tax benefits, granting lifetime income tax exemptions for mothers with two or more children, and making parental leave payments tax-free.
The economic breakthrough, he stated, would also encompass homeownership support, inflation control, and increased backing for small and medium-sized enterprises (SMEs). He highlighted that Alpine’s decision to invest in Hungary reflects the country’s stable economic environment, low taxes, and skilled workforce.
Menczer contrasted Hungary’s political stability with Europe’s more volatile political climate, where governments often collapse or struggle to form. He attributed Hungary’s stability to the Orbán government’s consistent representation of Hungarian interests, particularly in economic policy.
Hungary remains committed to strengthening its role as a bridge between East and West, leveraging foreign investment to drive economic growth, create jobs, and enhance its global competitiveness. The Alpine expansion is just one example of how Hungary’s open economic strategy continues to yield success.
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