Fidesz parliamentary leader says all compromises with IMF must serve Hungary’s interests

History

Janos Lazar, parliamentary leader of the ruling Fidesz party, told MTI in an interview published on Thursday that Hungary must accept certain conditions during upcoming talks regarding a financial-support package with the International Monetary Fund and the European Union, but that such conditions must not be contrary to the country’s interests.

Mr Lazar told MTI that "Only such compromises and agreements can be considered that serve the country’s own interests, so the kind of servile behavior that characterized the former government is not warranted, because this country’s revenue and expenditures largely cover one another."

Mr Lazar stated that Hungary will have to accept certain conditions during negotiations with the IMF and EU and must "add our own modification measures," citing transformation to the public-transport system as an area that requires attention.

"In a global world there must be global guarantees and there is a need for the guarantee of the IMF and the EU," Mr Lazar added.

Mr Lazar said with regard to changes that international organizations have requested to recently adopted laws, "there will be some things in which agreement comes about and some things in which it does not." The Fidesz parliamentary leader noted that although parliament decided not to satisfy requests from these organizations to delay ratification of Hungary’s new Central Bank Law and introduction of the possibility of merging the National Bank of Hungary (NBH) with the financial-market regulator PSZAF, it had built the European Central Bank’s observations into the former law and pledged not to implement the possible merger of the central bank and the financial-market regulator during the mandate of current NBH Governor Andras Simor due to expire in 2013.

Mr Lazar said that the leadership of the NBH and the government’s economic-policy makers think differently about the world and that it would be the duty of the NBH to utilize monetary means to support the government’s economic policy aimed at generating growth. Mr Lazar added achieving such growth is impossible without the support of the NBH.

Mr Lazar asserted that the NBH leadership should be more flexible, adding that "the central bank is not Andras Simor’s bank, but the country’s bank and it must act in the interest of the responsibility which it bears toward the country."

Mr Lazar remarked that it is an issue to be considered whether the government will appoint a new deputy governor to serve at the central bank during NBH Governor Andras Simor’s current mandate.

Mr Lazar characterized a Tuesday report that the government would use part of the National Bank of Hungary’s foreign currency reserves to spur economic growth to be "foolishness."

ADVERTISEMENT

Századvég raises GDP forecast to 7.8% Analysis

Századvég raises GDP forecast to 7.8%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New editor-in-chief at Betone Studio Appointments

New editor-in-chief at Betone Studio

Budapest leaders make public transport free for under-14s City

Budapest leaders make public transport free for under-14s

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.