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Hungarian "Szell Kalman Plan" is a step in right direction

Hungary TodayPosted by administrator Sat, March 05, 2011 13:02:33
Brussels, March 2, 2011 (MTI-ECONEWS) - A structural reform programme unveiled by the Hungarian government is a "step in the right direction", a European Commission spokesman said in Brussels on Wednesday.

The programme is aimed at consolidating the Hungarian public sector by means of structural reforms, strengthening economic growth, encouraging the increase of employment and enhancing the competitiveness of Hungary’s economy," according to the document.

The plan aims to make labour market regulation simpler and more transparent, resulting, together with economic growth, in a reduction of the number of unemployed by 100,000 in 2012, 200,000 in 2013 and 300,000 in 2014.

"It appears that the programme contains a number of structural steps that would improve the sustainability of the general government," Amadeu Altafaj Tardio, the spokesman for European Commissioner for Economic and Monetary Affairs Olli Rehn, told Hungarian reporters. The Commission is waiting to be informed of the details of the plan and their effects, which it will analyse in detail, he added.

National Economy Minister Gyorgy Matolcsy presented the Szell Kalman Plan on Tuesday. The plan aims to reduce state debt and foster growth.

The plan's main goal, to reduce state debt, is in line with a recommendation by the Commission, Mr Tardio said. The significant proportion of the consolidation from the expenditure side is also positive, he added.

As the Commission has not been informed of the details of measures, with the exception of some steps on the revenue side, it cannot yet assess the exact scale of the plan's effect on reducing the general government deficit, he said. The Commission must still analyse whether the plan puts Hungary on a sustainable path of consolidation and moves it in the direction of lasting debt reduction, he added.

The Commission will also assess the plan in light of Hungary's excessive deficit procedure, Mr Tardio said. (MTI)

Here you can read the complete plan » Hungarian version
& english version.

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