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Hungary: Gov’t prepares for crisis impact

  The global economic crisis does not directly affect, but still has indirect consequences for Hungary’s economy, Prime Minister Ferenc Gyurcsány says.

 

It can be already seen in the sagging trade at the Budapest Stock Exchange, he noted. All write-downs (as possible consequences of the global capital market crisis) would result in a loss amounting to just a couple of tens of billions of forints. Recession makes experts and politicians reconsider their faith in the self-regulating market, he said. Recession increases the risk of Hungary having a lower than 3% GDP growth in 2009, for which case the government laid out a scenario, a “plan B.”

He also said that redistribution should be further decreased; it dropped from 52.2% to 46.7 % between 2006 and 2009. It is a historical deed to submit a budget law prior to general election year, with the target of further slashing budget deficit. There is no more financial reserve in the public sphere; even if all ministries were closed down, there would be as little as Ft 70 billion saved, Gyurcsány stressed. (Napi Gazdaság)