By Tamas Csonka in Budapest
Spar will pay the price for its baseless and unfair accusations against Hungary, Minister for Construction and Transport Janos Lazar said at a conference on March 21.
The comments came after Dutch-based retail chain filed a complaint with the EU about Hungary's windfall tax. Spar CEO Hans Reisch also said in interviews with the German and Austrian press that Prime Minister Viktor Orban asked for a stake in the retailer to resolve the issue over the windfall profit tax.
The company announced a corporate reorganisation affecting its Hungarian assets to safeguard them from a possible takeover by cronies close to the ruling Fidesz party or the Orban family.
Government officials have reacted angrily to the comments by Spar's chief executive.
Economy Minister Marton Nagy said the company's 'attacks' against the government were driven rather by the 'loss-making position' of its local business which had 'fallen behind the competition'.
'Instead of taking steps to boost its efficiency and competitiveness, the company is spreading baseless fake news,' it added.
Lazar said he had advised the prime minister that now that the Austrians have lied, saying that the government wants to buy into Spar, this should be treated as a good idea and the whole company should be bought.
The minister said that the message to all foreign businesses investing in Hungary is that they must respect their buyers, respect the country that hosts them, and respect Hungarian consumers who help them generate extra profits.
The lash-out against Spar fits well into the government's plans to squeeze out multinational companies in sectors deemed strategic, including energy, media or retail.
In late 2020, Lazar as former head of the Prime Minister's Office, said it would serve the national interest if local companies dominated the food retail market.
Despite the unlevel playing field, the windfall taxes and extra regulatory burdens, foreign companies have managed to boost their market share in recent years, while local retailers, CBA, Real and Coop have seen a decline.
Spar paid €76mn in special tax last year, which is expected to rise to €92mn in 2024, and its losses in Hungary widened to €48mn in 2023 from €33mn in the previous year due to price caps and mandatory discounts.
