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FinMin calls for €800 mln spending cut in next years

Finance Minister János Veres on Thursday said public spending cuts of Ft 200 billion (€800 million) were needed to offset revenue shortcomings on planned tax cuts next year for the euro to be introduced in 2010. Speaking at a business conference, Veres said that with those cuts and an economy growing steadily at an annual 4%, criteria for euro adoption could be met by 2008 based on Hungary's recently updated convergence program. Other types of revenues must also be raised, Veres said, especially from social security contributions, which are currently swallowed up by a large black employment market, he said.