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Hungary seen being over any danger of default

Hungary is no longer under threat of defaulting on its debt and the economic crisis is slowly passing, Foreign Minister János Martonyi said, presenting a report of the Hungarian European Business Council.

Martonyi called the positive response of both markets and public opinion to the government's 29-point action plan unparalleled, adding that this was very important from the point of view of a successful economic policy.

The action plan, unveiled by Prime Minister Viktor Orbán early in June, raises the profit threshold for the preferential corporate tax and introduces a flat-rate personal income tax, among other things.

Martonyi stressed the importance of supporting SMEs as the sector is behind the EU average on all counts.

Although the report by the council forecasts Hungary's economy will continue to contract or stagnate in 2010, Martonyi said he expected 1pc economic growth for the year when asked by MTI. (MTI – Econews)