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PM says more decisive, deeper changes possibility

  There is a possibility for more decisive, deeper changes than those announced by the government two weeks earlier, Prime Minister Ferenc Gyurcsány said at a meeting of the National Interest Coordination Council (OET) on Friday.

Employers at the meeting of the council, which coordinates the interests of employers, unions and the government, said they backed proposals by the Reform Alliance, a group of specialists and business leaders, for steeper tax cuts and a bigger reduction in budget spending than that in the government’s program.

More and deeper structural changes are necessary than those proposed by the Reform Alliance and employers, Gyurcsány said. Budget expenditures must be cut after a careful analysis of state spending, he added. The government wants to submit amendments on pension and tax changes to Parliament at the end of next week, Gyurcsány said.

Gyurcsány proposed a compromise on a government plan to make non-wage compensation tax liable at the meeting. Employers have to accept that the current system will change, but there are some elements of objections by unions, especially in the case of meal and vacation vouchers, that have to be reconsidered, he added. (MTI-Econews)