Hungary's Chief negotiator points out agreements with EU/IMF in debate

 Varga reminded that after initial talks in July with the IMF where the subjects of the actual situation of the macroeconomy, the budget deficit, sustainable debt management, employment market regulations and competitiveness were broached, the IMF left its opinion for the government, containing suggestions of measures in economy policy that required modification or further development.

"Such a suggestions were withdrawing the transaction fee on the transactions of the National Bank of Hungary, increasing the efficiency of tax collection, re-examining the single-rate taxing system, further decreasing the size of state administration, improving the targeting of social services, abolishing the banking tax, re-examining the state support of public transport and cutting the expenditures of local councils," Varga said.

The government has investigated these suggestions and on September 19 sent its reply to both the IMF and the European Commission. The reply has highlighted the points where Hungary believes there is a possibility to continue negotiations. The parties agree in the further decrease of public administration, expanding the scope of products under reverse VAT, increasing the efficiency of tax collection and abolishing the limit for payroll tax for pension.

Varga added that the government made it clear it does not support cutting pensions and employees' income. Attached to the reply were spreadsheets detailing the trajectory and balance of the Hungarian economy. International partners have also received information on measures improving balance in the past years.