Prime Minister Mr Gyurcsány held a press conference about the schedule of the next month and some guidance about his reform ideas. He said the government programme will be drawn up by the end of May, and this should give guidance on what reform measures the new government will implement. He also added he is aware of the challenges Hungary is facing, and he said, he “understood the message of markets, as well". Although he did not yet disclose the details of the measures the new government will likely to take, he pledged to embark on the “most intensive reform period" since the change of regime in 1990. Since the change in regime, Hungary only had one intensive period of reforms, when the “Bokros package” was implemented between 1994-1998. Gyurcsány also reconfirmed their target to make Hungary meet the eurozone by 2010.
We see the news as positive, indicating the willingness of the new Hungarian Government to make the necessary budget reforms. However, we should wait another month to gain more details about the plans, which still leaves some overhang risks over the Hungarian market.