July 5, 2013

Get incentives in Eastern Europe payed by Western taxpayers

Between 2014 and 2020 in Hungary, robust incentives will be available for economic development.
Source: bbc.co.uk
The budget of the European Union cannot be compared to any similar-sized economies - it's much smaller than the federal budget of the U.S. or China. However, its impact on economic development is relevant. EU budget focuses on economic cohesion of member states and the improvement of European competiteveness (and agriculture + rural development, but it's another story).

Eastern Europe is not just a low-cost region inside the EU - probably this is the best funded low-cost region of the world. The large-scale EU transfers are combined with healthy economic structures, business-pro regulations and growing key industries.

Hungary: the 2nd largest money per capita

Between 2014-20, Hungary will pay 10 billion € into the EU budget and will receive 35 billion transfer from it - the net position of the country is 25 billion €. These are large numbers, but the top of that Hungary plans to fund mainly economic development projects - 60% of 35 billion € transfer (approx. 21 billion €) goes for economic development and innovation. Foreign direct investments in manufacturing, especially in automotive industry, electronics, pharma, food processing are highly welcommed (and subsidized). Details will be clarified later, but job creation and application of local suppliers will have priorities.

Eastern Hungary is a relatively underdeveloped area, and incentives will strongly focus to develop this part of the country (and Central Hungary - Budapest and its metropolitan area - will have a modest budget only).

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