Viktor Zsiday, fund manager, Citadella a on moonblog It begs the question whether we are really ready to innovate without EU funding.
Whether or not EU subsidies come in is an indication of how long Hungary will remain a member of the EU. Likewise, this is a sign, and in his opinion very frightening, that the European Parliament does not want Hungary to take over the post of President in succession.
In practice this indicates that we (might) become an undesirable country in the union. And this is what matters, in fact, not only whether billions of euros will flow out
– said the specialist.
It is also a question, the expert adds, for how long the operating owners – and portfolio capital – believe Hungary will be a permanent member of the federation, and how long the local population will believe the same.
If the belief that Hungary will remain a permanent member of the European Union is shaken, both foreign and domestic investors may begin capital flight. This question concerns EU money, not just billions of euros (also important from countless points of view). According to Victor Zidaye, the main supporting basis of the Hungarian economy is that it is a member of the Federation
The Minister of Economic Development’s statement that working capital replaces EU funds is wrong.
Both are of the same nature, as neither has to be repaid. The EU subsidies are truly non-refundable and directly increase the foreign exchange reserves of the Central Bank, while its owner expects a profit from working capital investments, the aim of which is to obtain more money than was brought in, so the current influx of foreign currency will be compensated for, the analyst said. way of foreign exchange flow in the future.
He thinks it is a mistake to substitute EU money from Eastern sources (whatever that means).
The Russians do not have money, and the Chinese remain, but they are far from providing selfless assistance, but in many cases they have led the country concerned into a debt trap. And the money invested is returned with interest – unlike in the European Union. Let’s look at the development of Moldova or Serbia, which are also “independent”, but working capital does not flow there:
Their independence doesn’t mean they can take advantage of both sides, it just means they fall to the floor between two chairs.
Huxit (as in the United Kingdom) could not happen by declaring withdrawal, but de jure they might still be members of the union, but de facto less and less.
We don’t give up, but we slowly let go: we don’t get money, our vote is withdrawn Says Victor Zsiday.
This increases the risk of a sudden change in the perception of Hungary in the eyes of both foreigners and locals, which could lead to slower or faster capital flight. The longer we do not receive money from the EU, the more signals we get from Europe (such as the question of successive presidency) that we are not true members of the EU, the easier and faster it will be.
Although the government indicates that we are preparing for a situation without EU funding, this is not possible – Victor Zayday highlights.
This is not possible because the story is not just about resources (the country can really function without them, although it is much easier for them to arrive), but about whether Hungary will remain part of Europe. Outside the European Union, Hungary will not be the rich, neutral, and friendly Switzerland the government imagines, but rather Serbia caught between two worlds. Or Moldova, depending on the blog post.
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