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Govt policy aims to correct mistakes of past, says PM

Hungary’s government is correcting the mistakes of the past by exercising a policy of burden-sharing, a policy of fortification and a policy of restructuring, Prime Minister Viktor Orban told MPs at the start of a session of Parliament on Monday.

He included the bank levy, crisis taxes on multinationals and an early forex mortgage repayment scheme under the burden-sharing policy. He added that that talks with the Hungarian Banking Association were moving in the direction of an agreement.

Among the elements of the policy of fortification, he put the strengthening of a middle class open from the bottom, supported by the Start work programme, the proportional tax system, family subsidies and the New Szechenyi Plan.

Less bureaucracy, a more rational regional government system and healthcare system, a higher-quality education system, a pension system that provides long-term security, social services that support convergence and the secure administration of justice are in the government’s restructuring policy, he added.

Mr Orban said the projection for economic growth next year would have to be lowered while the forint’s exchange rate to the euro would have to be knocked back. Hungary’s needs a safety net, in part to protect against the eurozone crisis, and "there is no better solution" to this than a new type of precautionary agreement with the International Monetary Fund (IMF), he added.

Mr Orban said a new growth action plan being drawn up under the lead of National Economy Minister Gyorgy Matolcsy had to be launched.