If the Hungarian government fails to substantially reduce central expenditure in the next national budget, then the cost-cutting revisions will be enforced by the global market, said György Surányi, former governor of the central bank, currently CEO of CIB Bank.
The country is presently paying the consequences of an irresponsible economic policy pursued between 2001 and 2006 and the government has no other viable options to save the economy but to significantly reduce both the volume of central spending as well as the budget itself. The changes must affect public administration, municipal governments, pensions, education as well as welfare. Only through the reductions could the government realize tax reforms that create better terms of operation for Hungarian businesses and maintain the current levels of employment, he added. (Gazdasági Rádió)