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New government's detailed economic policies to emerge in 3-6 months

The economic policies of Hungary's new Fidesz government to be formed following the second round of national elections on Sunday will emerge over the next three to six months, Raiffeisen Bank Chief Analyst Zoltán Török told MTI.

Török remarked that although Fidesz has said it will cut taxes and implement policies aimed at creating jobs and spurring economic growth, the party has not yet revealed the specific measures it will take to achieve these objectives.

The Raiffeisen chief analyst said that in consultation with the International Monetary Fund (IMF) and European Union, the Fidesz government will have to raise Hungary's unachievable current 2010 deficit target of 3.8% of GDP, noting that the new government could raise the target to a maximum of 6.5% of GDP.

Hungary's new government will also have to negotiate longer-term macroeconomic targets and structural reforms with the IMF, Török added.

The Raiffeisen chief analyst remarked that at present it is too early to fix a target date for the introduction of the euro. Hungary can adopt the euro in 2016, maybe even a year or two later, at the earliest, he said.

Török expects the relation between the new government and the central bank to be worse than with the current government. (MTI – Econews)