• Tue. May 28th, 2024

Viktor Orbán visits Donald Trump during NATO celebrations in Hungary

Byeditor

Mar 26, 2024

Relations between Hungary and the United States have historically been strained, affecting Hungary’s economy. In March, Hungary celebrated the 25th anniversary of joining the defense alliance NATO. The event held at the Central European University in Budapest was attended by American ambassadors, democracy advocates, researchers, professors, and former ministers. Surprisingly, Prime Minister Viktor Orban was absent from the celebration, despite leading Hungary into NATO in 1999. The American ambassador emphasized in his speech that Hungary joined NATO because of its commitment to democracy and the Western alliance.

While Hungary-U.S. relations are poor, they are not the only ones; Hungary’s relationships with other EU countries have also been challenging. Recent reports suggest that the U.S. is unhappy with the Hungarian government, creating economic uncertainty. A professor from Corvin University in Budapest observed that this tension with the U.S. could have repercussions on Hungary’s economy and its relations with the EU.

Hungary has increasingly turned its focus to the East, and Western investors have noticed a change in the government’s attitude. This shift has led to a decline in trust from countries like Germany, which was previously a significant investor in Hungary. Some Western investors have reported facing challenges in Hungary, although the exact nature of these obstacles varies. Meanwhile, Chinese investments in Hungary have introduced a new level of secrecy, further complicating the business climate.

Despite these challenges, Hungary continues to attract foreign investments, albeit in a different manner than before. Western companies have adapted to the changing environment, although there are concerns about additional taxes imposed on foreign companies. Overall, while Hungary’s antagonistic stance towards the U.S. and EU countries has not significantly impacted the business sector, potential implications on the economy and foreign investments remain a source of concern for experts and investors alike.

By editor

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