Economy
Commission clears Hungary's major nuclear expansion project
Commission nods on Paks II
The European Commission has closed its infringement procedure against Hungary over public procurements relating to the nuclear expansion project Paks II, Lázár said. The EC found that Hungary had the right to sign an intergovernmental agreement with Russia on the expansion of the Paks nuclear power plant (on the construction of two new blocks), he explained.The ruling also stipulates Hungary has not infringed EU public procurement rules, i.e. it had the right not to take them into consideration.
The EC decision also means that for up to 55% of the investment value (excluding special equipment) Hungary has committed itself to EU procurement regulations. The EUR 12.5 bn project is the biggest in Hungary for the next 30 years,
contributing to GDP by 1% annually
, creating 7,000 jobs directly and several tens of thousands indirectly, Lázár added.The EU investigation in the subject of illegal state aid regarding the Paks II project is also about to end. Hungarian authorities expect to receive the related documentation next week. This implies, that all the impediments and barriers will be gone in November, and Hungary can finally start the biggest investment of the next decades in 2017 or 2018.Personal income tax rate will not change for now
The proposal of the Economy Minister was very fair. We don’t just expect companies to raise wages, but in exchange we offer a major tax reduction, Lázár said. He added that changing the personal income tax rate is not on the agenda and no announcement in this respect should be expected this year.HUF 100 bn for the shuttle train to the airport
The government has also decided that a railway line needs to be constructed between the Liszt Ferenc International Airport (formerly Ferihegy) and downtown Budapest.The total value of the project is HUF 100 bn, which would ensure a 20-minute frequency and 20-minute rides on this line.
At present, the cabinet would like to have a brand new, 29-kilometre long railway line that could be linked to the existing eastern Hungarian train circulation running close to the airport.
