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Hungary gov't to continue crisis management

Despite signs of stabilization in the Hungarian economy, the government thinks that the current measures of active crisis management must be maintained, Prime Minister Gordon Bajnai told Hungarian reporters on Thursday, after arriving at an extraordinary European Union summit in Brussels.

“There is no room for exaggerated optimism; we must proceed carefully,” Bajnai said.

On a different subject, the prime minister said that Hungary supported proposals to increase international control over the banking sector, but disapproved of disproportionate capital requirements for banks because it could reduce lending activities and impact economic growth. “We would support rather a mid- or long-term program to build up capital,” he said.

On the topic of a summit on climate change to take place in Copenhagen at the end of 2009, where world leaders will discuss whether the Kyoto Protocol should be extended and expanded from 2013 or replaced with a new agreement, Bajnai said there are two views: making countries pay to counter the effects of climate change based on the pollution they generate or based on GDP. Hungary's stand on the matter is somewhere between the two views, although the ability of economies to bear the costs should have a greater weight when considering the two sides, he said. (MTI-ECONEWS)