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Gov't reform package should focus on spending cuts, says Simor

The government's reform package promised for February should contain spending cuts rather than measures to boost revenue, National Bank of Hungary (NBH) governor Andras Simor said in a television interview late Sunday.
Markets are concerned about what will make Hungary's fiscal consolidation sustainable,  Simor said in a program on commercial ATV. Measures the government has promised to take to improve the budget balance by HUF 600 billion-800 billion in 2012-2013 need to fill the gap left after private pension fund assets are transferred to the state pension pillar and "crisis" taxes expire, he added.
The NBH knows no more about the reform program than the information that has been made public,  Simor said.
The reform package could improve Hungary's risk assessment, reducing interest rates and increasing the room for monetary policy to maneuver, he added. (Econews)