Government Shifts Investment Promotion Focus to Southern Counties
Hungarian Government Shifts Investment Promotion Focus to Southern Hungary
The Hungarian government has announced its strategic shift in investment promotion focus to Southern Hungary, following the major rebalancing of the capital and investments in the eastern and western parts of the country. Minister of Foreign Affairs and Trade Péter Szijjártó stated that although the Hungarian economy has been centralized around Budapest, efforts have been made over the past six to eight years to improve the geographical distribution of investments.
In recent years, investments have been attracted to the Miskolc-Nyíregyháza-Debrecen triangle in the east, which is now one of the largest investment hubs in Hungary and Europe. As a result of these efforts, the government now aims to prioritize the Szeged-Pécs-Békéscsaba corridor in Southern Hungary. Minister Szijjártó highlighted that there is a need to identify and eliminate the reasons why more investments have not been brought to Baranya county in the region. One of the main reasons is the lack of a sufficiently large area with good infrastructure.
To address this issue, a 600-hectare industrial investment area will be created around Kővágószőlős and Kővágótöttös, near Pécs. Additionally, the Pécs-Pogány airport will be made usable, similar to the success achieved in Győr. The completion of the direct high-speed rail link between Pécs and Osijek, Croatia, and the construction of the Danube bridge in Mohács are also on the agenda. Furthermore, the expansion of the Paks nuclear power plant is urgently needed.
Minister Szijjártó highlighted the positive development in Baranya county, with industrial production increasing from HUF 280 billion to HUF 960 billion, and unemployment dropping from 13% to 4% between 2010 and 2022. He expressed confidence that these achievements provide a solid basis for further impressive development in the region.
The Minister also addressed the challenges and crises faced by the world economy, particularly the impact of the COVID-19 pandemic and the war in Ukraine. He criticized the EU’s failed sanctions against Russia and emphasized Hungary’s record-breaking performance in investment, exports, and employment. He stressed the importance of maintaining the Hungarian investment support system as the best in Europe to ensure future success.
Overall, the shift in investment promotion focus to Southern Hungary reflects the Hungarian government’s commitment to balancing regional development and attracting investments to all parts of the country.
