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Govt to reveal further structural reforms on April 15

The government will reveal further structural measures necessary to create a sustainable financial balance in the mid-term in Hungary's updated convergence programme to be presented on April 15, the National Economy Ministry said on Friday.

Measures carried out in 2010 contributed to the consolidation of Hungary's general government, but mid- and long-term economic and financial targets cannot be met without structural reforms, the ministry said.

The ministry said the government will supplement its structural reform program, dubbed the Széll Kálmán Plan, with a National Work Plan to be prepared by April 30. Within the framework of the plan, it will make proposals with the aim of creating the most flexible labor market in the European Union in Hungary and review atypical employment and public work programmes in the light of international comparison. Other proposals will be made to cut the administrative burden related to employment as well as reduce unreported employment. A review of the system of institutions that deal with employment as well as the tools used to shape employment policy will be carried out.

The ministry also said the government wants to reach an agreement with the Hungarian Bank Association that does not have a negative effect on the budget. The agreement should present a solution to the problem of troubled borrowers with foreign currency-denominated loans, it should raise demand among banks for government securities, support SME financing, see the start of a home creation programme, restore euro-based lending and promote long-term savings.