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FinMin: Recession will reduce demand in Hungary’s main export markets

The recession in Europe will reduce demand on Hungary’s main export markets, Finance Minister János Veres said at a conference in Hungary on Thursday.  

Veres said the government has decided to reduce the fiscal deficit as a first step. He said he was confident that the 2009 budget will be passed by Parliament despite the fact that the government is in minority. Parliamentary debate on bills on support to Hungary’s banking system will start soon, Veres noted.

Veres added that measures are intended to improve the Hungarian economy over the long run, not just to manage the present economic and financial crisis. Veres said that tax reform as well as reform of the local councils and the social system are inevitable. A rise in the Hungary’s minimum wage is not on the government’s agenda, Veres remarked. Veres said that there are enough resources available for projects that have already begun, though financing of future projects will have to be reviewed. (MTI-Eco)