Hungary’s long-term goal is to become not only Europe’s manufacturing base but also one of its leading innovation centres, Foreign Minister Péter Szijjártó said on Wednesday in Budapest. He emphasized that the foundations for a ‘dimensional shift’ in the national economy have already been laid, as Hungary seeks to take an active role in the ongoing global technological revolution.
Szijjártó announced that Siemens Mobility is investing more than six billion forints in Budapest to develop next-generation IT solutions for the automation of rail transport. The government is supporting the project with 1.5 billion forints, helping to create 40 new high-skilled jobs. The German company’s local research centre now employs over 400 professionals working on 70 advanced technology projects.
He stressed that the Hungarian government would continue to support Siemens’s expansion plans, noting that German companies remain Hungary’s largest investor community, providing around 300,000 jobs and contributing three to four billion euros in annual developments.
Szijjártó underlined that, after industrial output doubled and near-full employment was achieved in recent years, Hungary’s next challenge is to increase technological sophistication and added value. ‘Hungary has become a continental manufacturing base, and the goal is clear: we must also become an innovation hub in Europe,’ he said.
He called it a major success that many manufacturing companies have decided to relocate their research and development activities to Hungary, a move that marks a key step in the country’s economic transformation. In 2024, R&D spending in Hungary exceeded one trillion forints for the first time, and the number of people employed in the sector surpassed 90,000.
Over the past decade, the government has supported 71 R&D projects worth a combined 374 billion forints. According to Szijjártó, global competition for such investments is intense, which is why Hungary has revised its incentive system to make the country an even more attractive location for high-tech developments.
The minister also reflected on recent global and regional challenges, noting that despite economic pressures, Hungary’s economy has remained stable and resilient. Over the past 15 years, industrial production has more than doubled, rising from 25 trillion forints in 2014 to 53 trillion in 2024.
He pointed out that this growth was made possible by a fundamental shift in the tax system, which prioritized employment and reduced the burden on workers. ‘In ten years, one million new jobs were created, and today 4.7 million people are employed in Hungary. The labour-friendly tax system was the key to achieving near full employment,’ Szijjártó concluded.
Related articles:
