Employers accept updated euro plan, employees reject it
Employer representatives approved Hungary's updated convergence plan while employee delegates rejected it at a meeting of the interest coordinating council (OÉT) on Monday, two days before the program is due for submission to Brussels.
The updated version of the plan contains minor changes to the version presented to the EU in September, showing larger spending cuts, lower state debt and lower revenues, mainly due to changes in the gross domestic product figure and the forint-euro exchange rate since September.
Employer representatives said they supported the plan for aiming to cut the high budget deficit and achieve stability. Employee representatives argued that the aims of the convergence plan would broaden the social gap between older EU states and Hungary.
State secretary at the Finance Ministry Álmos Kovács said if, like in Ireland and Sweden, the budget deficit could be cut with austerity measures, this would eventually lead to significant improvements in economic output, interest rates and lower inflation. He noted that the budget deficit was high partly because of infrastructure investments such as motorway building over the past few years.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.