15 November 2013, Budapest

Good Afternoon, Ladies and Gentlemen!

If I wanted to get things rolling in style, I could say: get on your seatbelts because the Hungarian economy has moved up a gear during the past quarter. Before reflecting on this concrete development project, let me remind you all that although there is great debate in Europe regarding how exactly the European economy currently stands, there is no debate concerning the fact that Central Europe is looking forward to an outstanding decade, meaning that from the point of view of economic growth and economic performance Central Europe will be the leading region of Europe. We have already known, or at least suspected this for some time. But since we were playing in division two, this was not too enjoyable for us because we had to work our way back up to division one, to be among the well-performing economies of Central Europe. This has now become reality during the third quarter. If you take a look at the economic growth figures for the third quarter, and at the data regarding economic growth and the growth in industrial output, then you will find that Hungary is not just performing better than the European average, but has also worked its was back up to being one of the leaders within the Central European region. Three and a half years ago we were trailing behind, and now we are leading the pack once again. And if you take a look at the orders, meaning the figures published with regard to orders for the following quarter, then you can be sure that after the 1.7 percent growth achieved in the third quarter, we can expect an even higher level of economic growth in the fourth quarter. Accordingly, this is not a flash in the pan, but instead in 2013 we have received feedback that confirms the fact that what is happening in Hungary is putting Hungary onto a new path of economic growth. I would like to remind you that this is occurring during a period of crisis in Europe, in a period during which banks have siphoned thousands of billions of forints away from financing the economy because parent banks are in trouble at home. It was in a climate such as this that we had to set Hungary onto a course towards growth. Of course, growth data and the abstract figures for industrial production look good in the papers, but they do not mean much in everyday life. They must be translated into economic and social measures that people can experience in their everyday lives. Such translations include the reduction in utility charges, the tax benefit for those with low incomes or the parental leave extra programme. And here, today, we can be witness to a similarly important translation, because today's announcement means that the Takata plant is creating around a thousand new jobs in Hungary. Economic growth is only worth something if it also leads to the creation of new workplaces; it makes a difference what structure economic growth is realised in. Hungarian economic growth is a job-creating kind of economic growth, and the best example of this abstract idea is Takata's development project in Miskolc.

Ladies and Gentlemen,

I would also like to tell you, to complement what I have just said, that this is the largest greenfield development project in Hungary since the establishment of the Mercedes-Benz plant. Takata is a family business, which in Hungary usually means a small or medium-sized enterprise, but this is not a family business of that kind, but a huge, big international company that is capable of realising a greenfield development project in Hungary that is on a par with that of Mercedes-Benz. We are grateful to the owners and directors of Takata for having chosen Hungary as the location for this investment, and we are especially appreciative of the fact that they have chosen Miskolc as its location. Their decision is a reassurance to me and a source of encouragement to us because it confirms that the plans for the development of Miskolc University overlap our industrial development plans, and it is clear that a developing region needs a suitably developed university. If there is a university and there are production halls, then there are jobs, and then Miskolc and the surrounding region can catch up to join the country's other, rapidly developing industrial centres. I am grateful to the Mayor for having helped the realisation of this development project, and for in fact offering the best possible conditions for the establishment of the factory. Thank you also to the local members of Parliament for their continuous support of this development project. Thank you also to State Secretary Péter Szijjártó. It was his task to speed up negotiations regarding the development project.

Ladies and Gentlemen,

I would like to mention the fact that cooperation with the Japanese is especially valuable to Hungary. You all know that the Japanese are very highly regarded in Hungary. Not simply because of the Japanese factories that operate here, which of course are a great prestige in their own right, but also because of the country's culture and history. And the values of the Japanese are ones that we in Hungary deeply acknowledge and hold in high esteem. Work and the family also occupy an important place in their way of thinking. Europe too had eras in which work and the family stood at the centre of its thoughts. Perhaps the European continent will experience such a time once again. But until then, if one is looking for encouragement to follow the politics that we are following in Hungary today, which is also about the construction of a work-based society, then it the friendly and strategic cooperation we have developed with Japan that reinforces one's determination.

And so I can tell the management and employees of Takata that they will feel at home here in Hungary. They have come to a world in which there is not just a good chance that their investment will produce returns, where there is not just a good chance that the figures included in their plans will be realised, but where there is also a good change that they will be able to establish a long-term presence. We do not want to rush anybody, of course, but we very much hope that if this investment is a success, then eventually research and development related divisions will also appear within the plant's structure. I'm sure you all remember that it is usually production centres and production units that are first established in Hungary, and that they are then followed by the arrival of research and development. All of the large corporations who have established a presence in Hungary have also established their own research and development divisions here, and I am sure that Takata will also have its own good reasons for acting in a similar fashion.

With relation to economic growth, I would also like to add that it would seem to me that in your interpretation, meaning that of the press, the car industry and automotive industry has played a definitive role in this economic growth. This may be true, but I would like to draw your attention to the fact that agriculture also contributes significantly to the GDP, in addition to which the production of info-communications equipment has also shown rapid growth. I would like to tell you [Takata representatives] that Hungary has set itself an objective. For Hungary to be in first place among the countries of the European Union with regard to what percentage of the gross national product is derived from industrial production. We are in third place today, and second and first place, the Czechs and the Germans, are only a little ahead of us. And if we do a good job then the ratio of industrial production within the total Hungarian gross national product will continue to increase, and your investment significantly increases our chances of achieving this goal. We here in Hungary openly and avowedly wish to become the first country in Europe.

Ladies and Gentlemen,

To those who say that the automotive industry has played a more significant role than its ratio would otherwise warrant in the third quarter increase in GDP, I must say that there is of course some truth in this, but this is good news rather than bad news. European production centres will remain profitable in the long term when it comes to car production. Every economic forecast says that global vehicle production will continue to increase in the future. And so the fact that Hungary has placed such a great emphasis on vehicle production has proven to be a good strategic decision that will guarantee the high level, and in fact the further growth of the Hungarian GDP for many years to come.

Ladies and Gentlemen,

In addition, I am sure you all know that I will be travelling to Japan next week for an official visit at the invitation of the Japanese Prime Minister. It has been a very long time since a Hungarian Prime Minster has been on an official visit to that corner of the world. To kick things off, it will be nice to go there knowing that I have this investment project in my pocket with me, and I very much hope that while I am there we will be able to conclude several agreements at a political level that will create the conditions to enable me to report on more and more development projects that large Japanese corporations are realising in Hungary. I would like to thank everyone whose work is paid tribute to by this agreement. I have already spoken about the politicians. I would also like to thank the Japanese Ambassador to Hungary for having continuously supported the idea of this development project, and I would like to say thank you to you [Takata representatives] for having come to a decision such as the one we have just announced, and which is historic from our perspective, in so short a time. I repeat once again, this means at least one thousand new jobs in Northern Hungary, in Miskolc and the surrounding area.

Thank you very much for your kind attention.

(Prime Minister’s Office)