Hungary's government has launched an investigation into a significant investment deal with Chinese electric vehicle manufacturer BYD, following the recent appointment of former foreign minister Péter Szijjarto to an executive role at the company. The inquiry was announced on Monday, shortly after Szijjarto's resignation from parliament last week to join BYD, which is recognized as the world's leading electric carmaker.
Key Details
Prime Minister Peter Magyar stated that Szijjarto facilitated substantial government support for BYD during his tenure, amounting to
hundreds of billions (of forints) in public money, diplomatic support and state infrastructure.
The investigation will scrutinize all decisions and negotiations made by Szijjarto related to the BYD investment, including subsidies, tax breaks, permits, and environmental exemptions granted to multinational corporations during the administration of former Prime Minister Viktor Orban.
Background
Magyar emphasized the need to investigate the impact of these decisions on Hungarian taxpayers, workers, local communities, and the environment. He noted,
We will investigate who made these decisions, who prepared them, what professional warnings were ignored, and how much burden they left on Hungarian taxpayers, workers, local communities and the environment.
Neither Szijjarto nor BYD has publicly commented on the allegations of conflict of interest.
The investigation into the BYD deal could affect investor sentiment towards Hungary's regulatory environment and foreign investment attractiveness, particularly in the automotive sector. Investors will watch for the outcome of the inquiry and its implications for future foreign investments in Hungary.
Watch for further developments regarding the investigation and any potential repercussions for Szijjarto and BYD in the coming weeks.