Economy
Hungary Economy Minister announces extraordinary scheme
1,100-1,200 businesses may receive aid
The funding could create more than 5,000 jobs at 1,100 to 1,200 SMEs and help retain additionan 10,000 jobs.Varga said the tender will
- strengthen the SME sector;
- reduce regional differneces;
- help disadvantaged areas catch up;
- strengthen local economies.
This is why it’s important
Varga underlined that in order to reach full employment, the SME sector must receive meaningful support, adding that although Hungary’s jobless rate is extremely low in European comparison, there can be no stopping there. He stressed that supporting SMEs is crucial for these constitute 99% of local businesses and more than 70% of those having a job are employed by SMEs. That is why the cabinet focuses on SMEs, given that via technological developments, local and EU funding these companies can grow stronger, improving their own and the country’s competitiveness further.Here are the details!
With the help of the central programme, SMEs may acquire new equipment and machinery, or spend the funding to buy real estate or pay rent, the minister said. The aid for job creation may be granted as a regional investment aid or a de minimis aid up to HUF 1.5 million per non-registered job seeker per working place.There are auxiliary aids available on top of this: HUF 500,000 for the employment of agency workers, HUF 800,000 per new job for the hiring of workers that were employed exclusively in public works for 12 months, and HUF 400,000 per new job in preferential regions and settlements, Varga said.
He stressed the employer must undertake to maintain and operate the capacities and services created by the aid for three years after the investment was completed. The employer must also pledge to maintain the average staff number of the 12 months prior to its application at its place of business, and also to keep expanding staff for at least two years..
Applications are welcome between 1 August and 15 September. The investment undertaken needs to be completed by 30 September 2018 at the latest.
It seems the central state budget will foot this HUF 10 bn bill (i.e. the government will not use EU funds for the programme). It can easily do so for - in view of the H1 general government data - it has ample fiscal manoeuvring room. Small businesses have been waiting for a long time for a new subsidy that helps them retain jobs, given that the mandatory and substantial minimum wage hike is affecting this sector the most.
