Interview with Péter Lakatos, President of Confederation of Hungarian Employers and Industrialists (BUSINESSHUNGARY)

28 Apr Interview with Péter Lakatos, President of Confederation of Hungarian Employers and Industrialists (BUSINESSHUNGARY)

BF: Your organization is the largest business lobby in Hungary working under the motto “There is no successful country without a successful economy.” Could you share your mission and how you support businesses in Hungary?

Lakatos: We are an umbrella organization with around 40 to 50 associations, representing 68,000 indirect members and nearly 200 direct members, including major companies like Hungary’s top oil company and bank. Our role is to channel the concerns and opportunities of Hungarian businesses, working with the government, unions, and connecting Hungary with European economies.

We are a member of Business Europe and actively participate in the OECD and ILO, representing Hungary globally. Though often called a lobby, our work goes beyond that. We ensure Hungarian companies’ specific needs are heard at the European level while bringing global best practices back home. We help integrate companies into the European arena, especially in operational matters, as many U.S. companies in Hungary are subsidiaries of larger European operations.

Our independence is key. We work at a distance from politicians and prioritize fact-based communication over emotional appeals, representing the interests of Hungarian businesses with objectivity.

BF: What sectors in the country currently attract the most foreign investments, and how do you work to facilitate and sustain these investments?

Lakatos: As an organization, we don’t directly facilitate foreign investments, but we work to create a favorable environment for them. Our role is to ensure Hungary remains entrepreneurial and conducive to international business, despite the challenge of our small, language-limited market.

While we don’t lobby for specific companies, we encourage integration with the local economy. For example, when global companies like GE invest in Hungary, we ensure they connect with local suppliers and businesses, creating mutual growth. In the past, foreign investments integrated more quickly; today, we focus on ensuring that foreign companies bring not just labor, but also knowledge and expertise.

We’ve established a framework to assess FDIs, not just by the amount invested but by how deeply they integrate into the local economy—such as how many Hungarians hold high-level management positions in global companies. This approach helps us measure the real value foreign investments bring to Hungary.

BF: The country implemented the National Digitalization Strategy 2022-2030 to modernize industries and increase innovation. How are you supporting businesses in adopting digital practices, and what steps could further accelerate progress?

Lakatos: While our organization isn’t large enough to run massive digitalization programs, we collaborate with local and European initiatives to organize workshops in all 20 counties. We help businesses understand global expectations and access national and European funding. We’re proud of Hungary’s digital progress, being ahead of Germany, though still behind Estonia. Digitalization is a long-term journey, not a quick fix, requiring awareness, marketing, and an evolving attitude. It’s about staying at the forefront of technology.

BF: Corporations contribute significantly to Hungary’s economy, generating 42% of GDP and 80% of exports. How do you help the deeper integration of these investors into the domestic economy?

Lakatos: The level of integration depends on policies, especially corporate policies. We focus on policies like nearshoring and support multinational companies in adapting to local markets. Our role is to help them align with local economic conditions, reflecting their performance against peers and identifying opportunities for deeper integration.

BF: The United States is the fourth largest investor in Hungary. How would you like to invite these potential investors from the US to work and invest, ensuring a win-win situation for both parties?

Lakatos: Our role isn’t to directly facilitate investments, but to ensure Hungarian companies are well-prepared and open to communication. We help them present themselves effectively to foreign investors and adapt to global business practices. It’s about ensuring companies are competitive, so when U.S. investors look for suppliers or service providers, Hungarian companies stand out.

BF: What are Hungary’s competitive advantages?

Lakatos: Hungary’s strong higher education system and human capital are key advantages, especially in sectors without natural resources. We face challenges with brain drain, but Hungary’s location and its history of attracting foreign investors for the past 35 years remain strong assets. The challenge is increasing social and geographical mobility, but the potential is there.

BF: Have your members been increasing over the years?

Lakatos: We have a solid base of 40+ members, and it’s a challenge to add new ones. While we welcome blue-chip companies as direct members, we strive to balance this with smaller organizations. Our goal is to keep the right mix, with iconic leaders who can contribute to the common good while also representing their industries.