The Hungarian Prime Minister Victor Orbán announced, on behalf of the National Government, a dynamic economic protection plan aimed at creating, “as many jobs as the coronavirus epidemic is destroying”. The plan, is being implemented in 3 phases and will include the reorganisation of about 20 % of the country’s GDP. In order to achieve this, the government is adjusting the 2020 budget deficit from 1 % to 2.7 %.
The first stage of the plan was already undertaken with the reduction in social security payments, assistance offered to those paying ‘KATA’ simplified business tax, and the suspension of bank loan repayments.
The focus of the next and 2nd phase of the economic protection plan for Hungary, rests on five key elements:
- Job retention: For e.g. in the case of part-time work, the government takes responsibility for a portion of the wage costs from employers.
- Job creation: The government has an initiative to support investments with EUR 1.23 Billion.
- Key economic sectors’ relaunch: Agriculture, health, food, tourism, construction, film and creative industries, logistics and transport will be supported with government-guaranteed or subsidized loans to the amount of EUR 5.5 Billion.
- Financing of companies: The Government will provide soft loans to Hungarian companies and will launch a capital program to protect Hungarian businesses from hostile takeovers.
- Family and pensioner protection: For e.g. between 2021 – 2024, retired seniors will receive a 13-month pension.