Focus Europe Analyses the Main Trend in CEE with the Help of János Tamás Varga

Focus Europe 2014„After years in the economic doldrums, it seems that the potential is there for the Central and Eastern Europe (CEE) region to lead Europe’s economic growth once again.” Focus Europe, a leading law magazine in the USA (published by American Lawyer Media) analyses the main trend in the region with the help of VJT & Partners Managing Partner János Tamás Varga.

The article „Cautious Optimism” draws attention to the recent economic processes in CEE countries. „According to the Regional Economic Issues report the economies of Central Eastern and Southeastern region are forecast to expand by 2.3 percent in 2014.” A big part of this positive indicator is due to the Hungarian economy, which „has a favorable geographic location which allows investors to reach Europe and the Middle East directly,” says János Tamás Varga. The managing partner points out that “In terms of labor and real estate costs, Hungary compares very favorably to Western Europe and North America and while in Hungary the average gross wage is much lower, the productivity of the labor force is one of the highest within the CEE region.”

Mr. Varga also spoke about the recent political steps: „It is noteworthy that the Hungarian Government is ready to grant reduced tax or tax exemptions for definite periods to foreign investors in the case that they decide to achieve their business goals by investing in Hungary.”

The author of the article highlights the importance of Chinese investments as the main boost to the region and recalls the meeting between the Chinese Premier Li Keqiang and the leaders of CEE countries in Romania in November, 2013.

In summary, we can say that the second half of the year 2014 will be challenging for those doing business in the region and in Hungary, but we can declare that the „CEE region is looking more robust than it has for some time.”