Hungary is mostly ready for membership of the European Union (EU) in May next year, but government bureaucracy and a lack of preparation by the country's small businesses are matters that still need to be addressed, according to a new report.
A study by Hungary's EU Enlargement Business Council, which includes the country's biggest manufacturing firms, concluded that poor communication by the government, inadequate investment incentives and high taxes are discouraging foreign investors.
The report also said that small- to medium-sized businesses (SMEs) in Hungary aren't prepared for EU membership and are ill informed about how it will affect them.
Hungary's SMEs generally focus on supplying large multinational firms and lack the motivation or the know-how to grow and expand into different areas. They also fail to spend on research and development, which will put them at a disadvantage in the long-term, the report noted.
