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Hungary: The sacrifice of ownership

Initiatives

A “strong Hungary” cannot be built without hundreds of thousands of investors feeling the responsibility related to property, said Prime Minister Ferenc Gyurcsány at a conference on the New Ownership Program (ÚTP).

Acquiring property and accumulating wealth means, at the same time, renouncing consumption for the future’s sake. At present in Hungary, net savings account for 2% of GDP, and share investments cover 1-2% of all savings, cited Gyurcsány from a survey. Shares in the state-owned companies marked for privatization will definitely not be offered free, only at a favorable price, he said. In the first phase, New Ownership Program will involve the lottery company Szerencsejáték Zrt, a property management holding with Ft 50 billion to Ft 100 billion worth of assets, as well as electricity works MVM Zrt, and possibly grid controller MAVIR Zrt, separated from MVM, said Tamás Mészáros, rector of Corvinus University and chairman of ÚTP’s counsel board. In the second phase, the shares of a holding incorporating municipal water utilities, then another property management holding and the postal service Magyar Posta Zrt will be offered for sale, Mészáros outlined the schedule. The new ownership program can give impetus to the Hungarian capital market, the success of which is indispensable to a successful country, emphasized Attila Szalay-Berzeviczy, president of Budapest Stock Exchange (BÉT). The Hungarian population is consumption-minded, appreciates ownership of material assets, such as real estate, cash and cars, warned ex-Finance Minister Mihály Kupa, member of the body. (Gazdasági Rádió, Népszava)

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