Foreign Direct Investment (FDI) can replace EU funds and is even better, Economic Development Minister Márton Nagy said on Tuesday, adding that price freezes will not be lifted for now and inflation will be down to single-digit figures by the end of 2023.
In an interview with Világgazdaság Tuesday, Nagy spoke of the benefits of FDI over European funds, EURACTIV’s partner Telex.hu reported.
“In terms of impact, FDI is better: the market distributes the capital, we are not the ones to determine it, so it knows exactly what it has to do,” Nagy said. He added that EU funds are an “easily replaceable source” and were not “dominant” for his country’s economy.
Although Hungary is one of the largest net recipients of EU funds, the European Commission decided to freeze almost €22 billion of funds earmarked for Budapest under the 2021-2027 EU budget last December until the 27 ‘super milestones’ to restore the rule of law and fundamental rights are met.
By Charles…
