Hungary plans to lure Brexit-hit businesses from UK

By bne IntelliNews June 27, 2016

Hungary is preparing a plan to offer special conditions to companies relocating from the UK, the economy minister said in comments published on June 27.

The announcement comes after Britain voted in a referendum on June 23 to leave the European Union. While the Hungarian economy is likely to be hit by reduced EU funding and remittances, the damage is widely predicted to be limited. Meanwhile, many have noted that a Brexit is likely to create some investment opportunity for those within the remaining 27-state bloc.

Economy Minister Mihaly Varga told Vilaggazdasag he expects UK businesses in the auto and financial sectors to relocate to Hungary. The government is currently working on plans to offer special conditions to these companies, he added, but disclosed no details.

“Hungary offers good conditions regarding tax environment, administration and the cost and qualification of the labour force,” Varga claimed. Up to 780 British companies are already based in Hungary, who are satisfied with the investment environment, he added.

Varga also reacted to recent media reports suggesting Germany is concerned that Hungary, together with some other member states, could follow Britain in considering an exit from the EU. "There is no such will, plan, scenario or idea,” the official insisted. 

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