"The corporate competitiveness of Hungarian-owned firms depends primarily on their capital adequacy and market share" - said Pál Vadász, Chairman of the JVA's EU Committe, President of Montana Informatikai Rt. in an interview to Napi gazdaság.
Synopsis: Only a few months from Hungary's EU accession, it is still the general capital shortage of Hungarian-owned companies, which may be taken as chief hazard. Few firms are sufficiently attractive for foreign investors, whereas others suffer from the lack of development resources, und run the risk of being acquired by foreign capital or driven off their market by dumping prices. The influx of foreign capital is going on, from the west (Southern Germany, Austria, Benelux) mainly medium -size companies show interest, significant investments are more likely from Russia and the Ukraine, because Hungary could serve as a gateway to the EU. The Hungarian company scene will on the short term experience a significant concentration. The capital market is slack, recession continues. Likely Government measures are not yet easy to assess. Investment funds of Hungarian and foreign capital with central budget support could eventually be a remedy to Hungarian-owned medium-size companies.
Full text in Hungarian...