On paper, the Hungarian economy is doing quite well. This year’s economic growth is expected to be approx. 3 per cent., While the government announced niedawnokolejną German investment in the factory of cars Mercedes-Benz. Automobile is because eye in the head of Prime Minister Viktor Orban. Companies that invest in Hungary are exempt for many years with the taxes alone CIT and is still only 10 percent. But despite this foreign investment they are on a level with 2008. When the country fought in the economic crisis.
The automotive industry is responsible for over 10 per cent. The country’s GDP and provides employment to 145 thousand. people. But the Achilles heel of the Hungarian economy are small and medium-sized enterprises. Hungarian exporters, who sell under its own brand products to the EU are still very few.
Entrepreneur: “Little can be arranged fairly”
a recent report by the European Commission, the main problem of the Hungarian economy is still corruption and bureaucracy. Brussels says that, especially in terms of bribery Budapest has done little in recent years. In one of the surveys conducted for the Commission by as much as 81 percent. business representatives said that corruption in the country is widespread and fairly little can be arranged. 60 percent. and he believes that public tenders are set at specific companies. Hungarian branch of Transparency International said that the country has grown systemic corruption, which is extremely difficult to detect and prove, because soon be legalized.
Usually, it happens under the pretense of taking care of national interests or the health of citizens. Such is the case of trade and distribution of gas from Russia, which deals with the company MET. Established in Switzerland, shortly after winning in 2010. By the Fidesz election. One of the demands of the party was ending the practice of foreign companies, which had inflate energy bills. After the elections, Fidesz, most of them nationalized. License for the sale of got MET, which buys Russian gas at wholesale prices and sells the state, imposing high margin. Annually, this business brings 50 billion forints (approx. 700 million zł) Istvan Garancsiemu, also known businessman in the construction industry and owner of FC Videoton, who plays a 100-thousandths Székesfehérvár. For several years, going to school, lived there Viktor Orbán.
are formed pro-government media
a similar mechanism as in the case of gas trade worked for cigarettes. The authorities claimed that allowing only specialized shops for selling them, take care of the health of Hungarians. It turned out that the concessions to operate stores across the country got people befriended members of Fidesz, who worked for them during the election campaign. One of the recordings on this leaked two years ago, but the matter was swept under the carpet.
Sellers of cigarettes are just small fry, the higher up in the hierarchy, the greater the profits. At the beginning of the year in Hungary, suddenly they began to form a new press titles and portals warmth writing about government policy. In the summer, the market appeared in the newspaper “Magyar IDOK”, one of whose main shareholders was János Sánta, a monopoly on the Hungarian market cigarette sales. The company Santy with the Hungarian branch of British American Tobacco has been identified by the government as the winner of the 20-year concession, although its offer was ten times lower than competing offer Western companies. The case was so suspicious that drew the attention of the European Commission, which began to investigate the matter. Elizabeth Bieńkowska, European Commissioner. Internal Market and Services, stated that “nowhere in Europe is not as obvious as just Hungary that sell tobacco products may only those companies that have good relations with the government.”
Export profits to tax havens
a similar deal with the rulers began to make Andy Vajna, the former a Hollywood film producer who got mission to create influential TV channel. Vajna bought a majority stake in the private channel TV2, which has become a propaganda mouthpiece of the government. Credit for the purchase of state-owned Eximbank gave him, which supports Hungarian exporters. It’s just that Vajna does not export anything out of the profits from their companies – are registered for the majority in tax havens – in Cyprus, the Netherlands Antilles or Luxembourg. The main source of income is Vajny casinos throughout the country (except only one city, Debrecen).
In the interests of the Government of fortune earn also ruling politicians. Many of them happened in the not entirely clear circumstances, owners of a large amount of land that the state przeznaczało for privatization. They do not always appear in their declaration of assets, because – unlike in Poland – these documents practically not subject to verification. In August, investigative journalists niche portal Direkt36 reported the matter Transport Minister Laszlo Taso, who entered the land to his property statement, as it was located in the new industrial park, which is to build a government. The Minister answered questions from journalists refused, accusing them of “paid provocation”. And so far it seems that the case spread through bones.
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