Hungarian central bank head denies political ambitions

Initiatives

National bank of Hungary (MNB) Governor András Simor denied Sunday he would accept an offer to become Hungarian prime minister and stressed that no such approach from the government has taken place.

“No,” was Simor's flat answer in an interview on television station Hír TV when asked whether governing parties approached him over a political role or whether he would like to become prime minister.

Hungary plunged into a government crisis last week when the junior coalition party SzDSz said it would pull out of the coalition April 30. The move will leave the governing Socialists with a parliamentary minority and a dismal popular support of about 16%.

“Investors aren't overly concerned over the current political situation, their primary focus is on economic processes,” Simor said.

Simor noted that the government's ongoing fiscal adjustment program is badly structured as it relies heavily on boosting budgetary revenues and doesn't cut expenses.

“The structure of the adjustment program doesn't support long-term, sustainable economic growth,” Simor said.

“We don't see economic growth picking up significantly in the years to come,” he added.

Gross domestic product growth slowed to 1.3% in 2007, mostly as a result of the fiscal adjustment program. Analysts see this year's GDP growth at around 2%.

Simor stressed that the state should reduce social spending with the equivalent of about 10% of GDP or risk the economy remaining a laggard in the long term. (tradingmarkets)

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.