The government’s policies toward corporations have resulted in delayed or completely abolished foreign investments, revised business plans and job dismissals, Hungarian executives polled by news agency Bloomberg say. “In 2011 we received funds from our German parent company for a factory development but after the introduction of the ‘chips tax’ they decided to develop a German plant instead,” Chio Magyarország chief Gábor Ágyai Szabó said. Hungary will not be considered for investment until regulations are changed, he said. Other executives described similar issues. László Kozma – who runs a German-owned factory but asked Bloomberg not to mention the name of the company – said he had to abandon three business plans due to regulatory changes, cut back on investments and dismiss 10 per cent of the plant’s workforce. Kozma is not the only one to fear retaliation. “Officials from six foreign-owned companies declined to comment on the record, citing concern that criticising the government may damage their business interests,” Bloomberg said.
