While Hungary has the relevant policies and measures in place, there is potential for improvement. Attention should be given to strengthening the country’s institutional governance and the robustness of its policy goals and commitments.
Among the three EIRA risk areas, breach of State obligations is lower compared to discrimination between foreign and domestic investors and unpredictable policy and regulatory change.
Hungary’s performance against EIRA’s four indicators is good. It has received a score of 82 on rule of law. Regulatory environment and investment conditions and management of decision-making processes are at 73 and 62 points, respectively. The indicator score for foresight of policy and regulatory change is 61.
On a more detailed level, Hungary’s overall sub-indicator performance is good. The highest scoring sub-indicator is respect for property rights with 83 points, followed by management and settlement of investor-State disputes and restrictions on FDI at 80. On transparency, the score is 74, while communication of vision and policies stands at 73. A good score of 67 has been obtained on regulatory effectiveness. Institutional governance and robustness of policy goals and commitments have each received a moderate score of 50.