Hungary's Ex-Foreign Minister Grilled Over BYD Deal Before Joining Automaker
Péter Szijjártó faces parliamentary scrutiny over government subsidies and his role in BYD's European expansion, which preceded his move to an executive position with the Chinese company.
BUDAPEST, Hungary -- Péter Szijjártó, Hungary’s former foreign minister, appeared before a parliamentary committee on Monday to address questions regarding his dealings with the Chinese automaker BYD. His questioning comes after he resigned his parliamentary seat in July to accept an executive position with the company, which is the world's largest electric vehicle manufacturer.
Szijjártó, who served under former Prime Minister Viktor Orbán for 12 years, faced accusations of a conflict of interest due to his central role in facilitating substantial government subsidies for BYD while he was still in office. Critics highlighted his involvement in securing the deal for BYD to establish its first European factory near Szeged and the company's European headquarters and research and development center in Budapest, which was slated to receive 20 billion forints (approximately $63.7 million) in government assistance.
Upon arriving at the closed-door National Security Committee hearing, Szijjártó told reporters that there had been “serious misunderstandings” concerning BYD’s investment in Hungary. He described his new role at the company as an “executive responsible for the group’s external relations and the development of new business lines.”
"I consider it a great success that this factory came to Hungary," Szijjártó stated. "I would also like to point out that the proposed and awarded government subsidies for the construction of the BYD factory in Szeged have remained well within the framework of the usual subsidies for investments of this magnitude."
In July, Hungary’s new Prime Minister Péter Magyar announced that an investigation would be launched to "examine all the decisions, negotiations and state commitments" made by Szijjártó related to the BYD investment. Magyar stated that Szijjártó had aided BYD with "hundreds of billions (of forints) in public money, diplomatic support and state infrastructure."
While in office, Szijjártó was instrumental in securing numerous foreign investment deals with Chinese companies looking to establish factories in Hungary, particularly in the realm of battery production for the electric vehicle industry. The Orbán government had aimed to position Hungary as a global hub for lithium-ion battery manufacturing, though market pressures and decreased demand have impacted the profitability of these investments.
Since taking office in May, Magyar's administration has pledged to enhance regulations and oversight within the battery production sector, following incidents including workplace accidents and findings of contamination levels exceeding legal limits at several plants.