However, the report stressed the need to continue with the restructuring of the steel industry. The October 1999 Report noted considerable convergence between industrial policies in Hungary and in the European Union. Industrial restructuring was continuing although there had been delays in the steel industry. The November 2000 Report indicates that privatisation has been practically completed. Industrial restructuring has continued since the previous regular report.
Foreign investment continues to play an important role.
Its aim is to speed up adjustment to structural change, encouraging an environment favourable to initiative, to the development of undertakings throughout the Community and to industrial co-operation, and to foster better exploitation of the industrial potential of innovation, research and technological development policies. In order to cope with competitive pressure and market forces within the Union, the industry of applicant countries needs to have achieved a certain level of competitiveness by the time of accession. It is based on maintaining a stable, open and competitive economic environment which favours the profitability of private businesses. To achieve the objectives of its industrial policy, Hungary has set up the Hungarian Development Bank, which is supported by the Hungarian Investment and Trade Promotion Agency. Hungary has continued the restructuring of its industries.