Hungarian Investment Promotion Agency

In his opening remarks at the event co-organized by HIPA and Dialog Ungarn — an association working to deepen German-Hungarian relations — Mr. István Joó underlined:

without a strong Germany, there can be no competitive Europe

The Government Commissioner for Investment Promotion and Implementation of Large FDI Projects expressed hope that the new government in Berlin would focus on supporting industry and businesses and help restart Europe’s largest economy.

He stressed that the mindset suggesting that the best car is the one that is never built must be rejected.

Mr. István Joó made it clear that Hungary does not wish to develop instead of Germany but alongside it, as a strategic partner in shared growth.

Referring to recent cases where production sites in Germany were closed and relocated to Hungary, HIPA’s CEO stressed that this is not the desired direction. Instead, it would be ideal if German companies continued to develop their operations both at home and in Hungary.

He highlighted that Germany is not only Hungary’s number one trading partner but also a key investor, accounting for 18% of the country’s total FDI stock.

HIPA facilitated ten major investment projects by German companies In 2024, making Germany the most active investor community in Hungary based on the number of new projects. Between 2014 and 2024, HIPA supported 318 German-linked investment decisions, representing a total investment volume of approximately 18 billion euros.

Mr. István Joó noted that German business presence spans nearly all sectors of the Hungarian economy. In the field of technology, for instance, Evosoft expanded its R&D operations in Budapest and Miskolc last year. In the medical industry, Schott Hungary inaugurated a new production hall in Lukácsháza. And in the fast-growing sector of business services, German presence has also been strengthening: the Kostal Group recently chose Budapest as the location for their global business services hub.

All these examples clearly show that

German companies thrive and prosper here. They find a business-friendly environment, a talented workforce, and agile and supportive governmental institutions that help them grow. They invest, reinvest, and expand, and we at HIPA are their partner at every step of the way.

This is precisely the aim of the latest amendments to the system of non-refundable VIP cash subsidies, which are designed to encourage high value-added activities, with a strong focus on innovation and partnerships with local universities.

Mr. István Joó added that German companies are also encouraged to deepen their cooperation with domestic suppliers and to take advantage of HIPA’s supplier database, which brings together some 800 Hungarian companies across various sectors.

The geographical focus of the investment incentive scheme has also been recalibrated, attention is now shifting to the country’s south, where untapped potential still lies.

The HIPA CEO emphasized that German companies can continue to count on Hungary’s support in EU-level legislative processes, just as they have experienced in the past when it came to defending the interests of the automotive industry.

Let us continue to build a shared future in which German precision and Hungarian agility work hand in hand, not just for the benefit of our two economies, but for the resilience and innovation of Europe as a whole

— Mr. István Joó concluded.