Foreign Minister Péter Szijjártó delivers a speech at the handover ceremony of Neutrik Hungary Kft.’s investment in Ózd on October 3, 2025.
In a move to sharpen Hungary’s competitive edge in the race for global investments, the government is introducing two major changes to its investment promotion system, Minister of Foreign Affairs and Trade Péter Szijjártó announced on Wednesday in Budapest.
Speaking during a break in a Cabinet meeting, Minister Szijjártó emphasized that the competition for job-creating investments across Europe has intensified significantly, as countries vie for a place among the winners of the emerging global technological era.
“Hungary has achieved remarkable success in recent years, becoming a key manufacturing hub in Europe,” FM Szijjártó said. “Beyond production, we have also attracted numerous investments in research, development, and services.”
To build on this momentum, the government will implement two critical policy shifts aimed at streamlining and enhancing investment incentives, particularly in the fields of green technology and innovation.
The first change takes advantage of a recent European Commission decision that allows national governments to approve support for environmentally sustainable industrial projects—those targeting net-zero emissions—without requiring prior EU approval for funding of up to €350 million.
“This will allow us to make much faster decisions and be significantly more competitive,” FM Szijjártó said. “We will no longer have to wait a year or more for EU approval, which has been a major disadvantage, especially compared to non-EU competitors.”
According to the minister, the new rules will give Hungary a stronger hand in competing for green investments that reduce harmful emissions and support environmentally friendly economic growth.
The second key reform targets innovation-driven growth. Going forward, Hungarian companies with as few as 50 employees will be eligible for government support for R&D-related investments, provided they create at least ten new research or development-related jobs.
“This will open up new opportunities for more Hungarian businesses to engage in innovation,” FM Szijjártó said, highlighting the country’s growing track record in high-value-added, knowledge-based industries.
Additionally, the government will give preferential treatment to R&D projects that involve collaboration with local universities or healthcare institutions. In such cases, up to 75% of the internal cost structure can now be attributed to this cooperation—up from the previous 50%.
“These changes will make Hungary an even more attractive destination for investment,” FM Szijjártó concluded. “We will be able to bring in more environmentally friendly, high-value-added jobs that require a highly skilled workforce.” The new measures underscore Hungary’s strategy to position itself not only as a manufacturing powerhouse, but also as a leader in research, innovation, and sustainable development.
Via MTI; Featured image: MTI/Vajda János
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