The relations between Hungary and the United States have been strained for a long time, affecting Hungary’s economy. In March, Hungary celebrated its 25th anniversary of joining the defense alliance NATO. However, despite leading Hungary into NATO in 1999, Prime Minister Viktor Orban was absent from the celebration. The American ambassador emphasized in his speech that Hungary joined NATO due to 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 towards them. 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 differently than before. Western companies have adapted to changing environment but there are concerns about additional taxes imposed on foreign companies by experts and investors alike.
In conclusion, while there are tensions between Hungary and both China and America over various issues such as democracy and trade policies respectively , it is evident that foreign investment continues to flow into this country despite their antagonistic stance towards these countries which is good news for business owners looking for new markets to expand into or establish new ventures .
