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Gov’t lacks political backing, little room for reforms

  A government that does not enjoy broad political support would not have real room to move and could only take steps to “put out the fire”, not far-reaching structural reforms, bank analysts told MTI on Friday.

The government announced at the weekend it would seek to form a new government that enjoyed broader support, but candidate after candidate to fill the post of prime minister has rejected the nomination, and Hungary’s president has suggested early elections might be the only way to create a stable government.

Raiffeisen Bank’s Zoltán Török said one year -- the period until the next general elections -- is a long time, during which many big steps could be taken. But not if the government lacks the support of Parliament to carry out reforms. It does not pay to prepare reforms that the government formed after the 2010 elections could sweep off the table, he added.

Preparing structural reforms would take a long time, and there is still no finished program, Török said. Early elections would mean half a year of lost time, but forming a new government could mean a whole year of lost time, he added.

Takarékbank’s Gergely Suppan said one year would be enough to lay the foundations for certain reforms, but this would not be much good if there is a lack of political consensus. The parties have to agree at least on the basis of reforms, he said. (MTI-Econews)