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Re-establishing competitiveness first task of new gov’t

The most important task of Hungary's new government will be to re-establish the country's economic competitiveness, Zsigmond Járai, an economic expert for opposition Fidesz, which won a majority in the first round of general elections on April 11, said.

Járai acknowledged that the new government would face a dilemma: how to stimulate growth while bringing down the budget deficit. But he said a new economic environment could be created within a year that allows the return of 4%-5% annual growth in 2-3 years.

There will be some measures that the new government can take right away and some that will take years, he said. The new government will take immediate steps to cut taxes, reduce bureaucracy and clamp down on corruption, he added.

Hungary's tax system must be simplified, contributions lowered and over-spending by the state stopped, Járai said.

For the time being, introducing the euro is not a reality, as Hungary is far from meeting the criteria necessary for adopting the single currency, Járai said. Only if economy can be put on the right track in 2-3 years can a date for joining the eurozone be set, he added. (MTI – Econews)