Page 35 - bne IntelliNews magazine February 2025

bne February 2025 Central Europe I 35
party leadership, and his company lost all state contracts, leaving Meszaros
– and indirectly Orban – in charge of the club. In a move foreshadowing future events, Meszaros took over Molnar’s companies, mirroring his later acquisition of businesses owned by former Fidesz treasurer Lajos Simicska.
The club's promotion to the first division in 2012 was celebrated by the construction of a new stadium, built by Meszaros' company. The project and the football academy were partially funded through Hungary’s corporate tax benefit scheme (TAO), which allows companies to deduct taxes for sponsoring sports clubs. Puskas Akadémia has since become the largest recipient of TAO funds among Hungarian sports clubs.
Despite the billions of forints invested, the academy has yet to produce internationally recognised football talent. The first division team, which is chasing its first championship title, mainly fields foreign players, much to Orban's disappointment.
Road to politics
Locals recount that Meszaros initially showed little interest in national politics, and during Orban's first term as premier (1998-2002) he was elected to the local council as an independent. After an eight-year hiatus, he returned to politics in 2010, leveraging his role as president of the local football academy, and won a council seat with Fidesz’s backing.
Despite Fidesz’s sweeping victories in the general and local elections that year, the mayoral candidate of the ruling radical rightwing party narrowly lost to independent incumbent Gyorgy Varga, a setback for Orban. In 2011, the mayor was removed from office under a newly amended law disqualifying public servants with outstanding debts. The politically motivated campaign highlighted Orban's ruthless power politics. In the subsequent election, Meszaros won by a landslide.
As mayor, he maintained a low profile, rarely granting interviews or engaging with constituents. Council meetings
were often announced only hours beforehand, violating procedural rules. On one occasion, he called the police on a journalist attempting to attend public meetings
Since 2010, tens of billions of state and EU funds have transformed Felcsut into a Potemkin village of Orban’s design. High-profile projects include a narrow- gauge railway connecting Felcsut to Bicske, funded largely by EU grants, which has been criticised as a vanity project because of its low use. Tourism investments have spurred guesthouses, an artificial lake with a swan-shaped bridge, and a glass-walled restaurant with a HUF1.5bn state-funded price tag.
Business kicks off
In the year of the 2007-8 financial crisis, Meszaros & Meszaros was just a small business with 40 workers. Annual revenue was close to HUF100mn and profits reached HUF5mn.
procurement contracts, as Orban sought to create a new bourgeoisie – a class of loyal, domestic entrepreneurs aligned with his political agenda – replacing the pre-existing elite, which was dominated by foreign investors and liberal businessmen.
Hungary's strongman has used the state's regulatory and financial power to shift wealth and resources toward politically connected individuals. Besides lucrative state contracts often funded by the European Union, the government has nationalised strategic assets, such as energy utilities and banks, and later sold them to chosen Hungarian businessmen at favourable terms.
Sector-specific taxes were introduced targeting foreign companies, particularly in banking, retail, and telecommunications, driving some out of the market, creating space for local players and national champions.
“Meszaros's rapid wealth accumulation was primarily linked to lucrative public procurement contracts”
The turning point came in 2011, following Orban's return to power. Revenue soared to HUF2.2bn and after- tax profit reached HUF853mn, of which HUF322mn was taken out as a dividend. From this point onwards, the company reported an exponential rise in revenue, while profits rose at a less robust pace.
The former Felcsut mayor was flooded with state contracts after the falling out between Fidesz treasurer Simicska and Orban in 2015. The businessman turned against the prime minister because of his shift towards Russia and for dismantling the rule of law. By 2020, Meszaros & Meszaros raked in HUF113bn in revenue and HUF15.5bn in profit, which rose to HUF129bn and HUF32bn respectively by 2023.
Meszaros's rapid wealth accumulation was primarily linked to lucrative public
The making of a national champion
Prominent examples include the creation of Opus Global Holding, the flagship company of Lorinc Meszaros listed on the Budapest Stock Exchange. In just three years, the holding company, which consists of more than 40 entities. tripled its turnover to a record HUF686bn, while net profit rose two-fold to HUF45bn.
Opus has grown from a small holding to a national champion, securing market- leading positions in several sectors. Its resilience lies in strong fundamentals, supported by a diversified, multi- industry portfolio.
Meszaros personally owns over 200 companies, 40 of which are managed under the Opus umbrella. The holding includes enterprises in tourism, construction, industry, food production,
www.bne.eu