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Hungary: Gov’t sees proposals on local gov’t

    Proposals to make municipal governments more efficient, including cutting the number of local government representatives, could be presented to Parliament within weeks, the Office of the Government Spokesman told business daily Világgazdaság when asked whether the new government would continue the initiatives started by its predecessor.

The Socialist minority government said at the weekend it would set up a new government with broader social appeal.

Proposals on the Bankruptcy Act could also be submitted to Parliament within weeks, the office said. The government is preparing crisis management proposals in all areas, and it is also working on a script for the possibility of a deeper-than-expected recession.

Prime Minister Ferenc Gyurcsány said on Sunday that the aim was not to leave the new cabinet staring into an empty drawer.

Világgazdaság noted that the a new government was likely to make significant changes to the current government’s tax package, such as raising the main VAT rate by more than earlier planned. (MTI-Econews)