Hungary's new government is investigating state subsidies granted to Chinese electric carmaker BYD, following the hiring of former Foreign Minister Péter Szijjártó. Transparency International warns the move raises 'revolving door' concerns and could expose the state to corporate pressure.
The investigation into BYD's subsidies and the hiring of a former minister highlights concerns about transparency, potential conflicts of interest, and undue corporate influence in Hungary's economic dealings, particularly with China.
Hungary's new government has launched an investigation into state subsidies granted to Chinese electric carmaker BYD, a move prompted by the recent hiring of former Foreign Minister Péter Szijjártó by the company. Szijjártó, who served for 12 years and was responsible for attracting foreign investment, had negotiated the subsidies and permits for BYD's first European factory in Szeged.
Prime Minister Péter Magyar announced the probe, stating it would examine "all the decisions, negotiations and state commitments" made by Szijjártó related to the BYD investment. The investigation aims to scrutinize who made these decisions, what warnings were ignored, and the financial burden on Hungarian taxpayers, workers, local communities, and the environment.
Miklós Ligeti, legal director at Transparency International Hungary, described Szijjártó's move as a textbook 'revolving door' phenomenon, where former officials take up roles in sectors they previously regulated. He warned that Szijjártó's extensive knowledge of Hungarian government operations could create vulnerabilities for BYD to exert influence or pressure on the government in future dealings. Ligeti welcomed the investigation but noted that Hungary currently lacks a mandatory 'cooling-off period' for ministers after leaving office.
Szijjártó, widely seen as pro-China during his ministerial term, also negotiated the Belgrade-Budapest railway project, a key part of China's Belt and Road Initiative. BYD's expansion in Hungary has previously drawn criticism from environmental and labor rights groups.