There is no need for any further austerity measures in 2007 and the government has no plans to introduce further spending cuts, Finance Minister János Veres said on Saturday.
All tax and contribution rises have already passed through, the only planned new tax is the real estate tax which should come into effect from 2008, he said. “Living standards will by and large return to their end-2005, early 2006 levels by the end of 2007,” Veres said.
He added that wages in real terms rose by 3.8% in 2006, and they will drop by the same amount in 2007. “In other words, in 2007 we are losing the extra rise of 2006,” he said. (Bloomberg, Népszava)