Hungary’s Minister of National Economy, Márton Nagy, stated that domestic-owned companies have increased their share of value added in most sectors of the national economy over the past 15 years, though this trend hasn’t been consistent across the board.
He expressed concern that the share in retail trade decreased from 41 percent to 40 percent.
Nagy also identified the telecommunications, IT, and construction materials industries as sectors where foreign ownership remains dominant. He also noted that further work is needed within the banking sector, reiterating his previous position that five major banks should remain in the country:
- OTP,
- MBH Bank,
- K&H
- and UniCredit
with “the fifth spot currently open,” he said.
According to the Hungarian National Bank’s (MNB) classification since 2021, seven large banks currently operate in Hungary
(those with balance sheet totals exceeding 3000 billion forints among commercial banks),
leading Nagy to suggest that the consolidation of two large banks into a domestic credit institution would be desirable. The seven large banks, according to their consolidated balance sheet totals as of the end of 2024, are:
- OTP,
- MBH,
- K&H,
- UniCredit,
- Erste,
- Raiffeisen,
- CIB,
of which two (OTP, MBH) have decision-making centers in Hungary, two in Austria (Erste, Raiffeisen), two in Italy (UniCredit, CIB), and one in Belgium (K&H). Nagy previously made similar statements in 2014 and 2019.
Our interpretation suggests that seven large banks operate in Hungary, of which he specifically named four. He therefore categorized CIB Bank, Erste Bank, and Raiffeisen Bank into a separate category from the other four, and his words can be interpreted as indicating that he would not welcome more of these banks in the country.
Message to SMEs
The number of export-capable small and medium-sized enterprises (SMEs) has increased fivefold since 2010, from 3,000 to 15,000, and Hungarian exports are sufficiently diversified with a high proportion of high-tech products, Nagy stated.
Nagy dismissed claims that Hungarian companies are at a disadvantage in terms of support policies, asserting that nearly two-thirds of resources allocated to enterprise development in 2026 went to small and medium-sized businesses. He also highlighted the growing role of Hungarian households in financing the national debt, noting that the share of foreigners in the government bond stock decreased by 14 percentage points, while the share of households increased by 21 percentage points since 2010.
Price Controls Necessary
Nagy described price control measures, such as price reductions and mandatory promotions, as necessary steps, stating they helped reduce inflation. He added that some of these unorthodox measures are also being used in other European countries.
Turning to finances, he said there is no “fiscal alcoholism,” and the budget deficit is under control, falling to 4.7 percent last year (ESA-based). He attributed the deficit largely to interest payments, while the primary balance remains stable and the current account balance is in surplus. He noted that the growth of national debt needs to be reversed. Central bank reserves have risen to a historic high, exceeding 60 billion euros, and the banking system remains stable.
Címlapkép forrása: MTI Fotó/Bruzák Noémi
