Hungary not planned economy, says Varga

A market economy, not a planned one, operates in Hungary, National Economy Minister Mihály Varga said in an interview published in German periodical Welt am Sonntag. In 2010, Hungary launched a new economic policy, but the government assessed that a market economy was most profitable for society, Varga said, rejecting criticism that policy measures resemble economic planning. “Every country lives its own kind of capitalism,” he said, adding it was enough to compare Germany, the United States and China to see this. He also dismissed criticism that Hungary's assessment among investors had deteriorated and said that government efforts to stabilize the economy are attractive to investors, including a new tax regime. Varga said Hungary's talks with the International Monetary Fund on precautionary financial assistance would continue at a meeting starting in Washington in the coming week. Hungary sought a financial “safety net” from the IMF in November 2011, but talks on the credit have since stalled.