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Macro: Gyurcsany announces detailed reform schedule

26.6.2006 10:02
Autor: KBC/Patria

Hungary's Socialist-Liberal coalition has agreed a comprehensive public-sector reform programme aimed at making budget deficit cuts sustainable, said Prime Minister Ferenc Gyurcsany on Saturday.

Whereas, earlier announced reform plans had concentrated on the revenue side, this weekend at an informal meeting in a government resort complex at Lake Balaton, the details of Hungary's fiscal adjustment package were agreed on.

According to the PM further steps of the reforms are the following:

Education Minister will announce details of education reforms on Tuesday (the required amendments will be prepared by the end of August)
The social compensation system, involving gas prices, will be announced on Wednesday
The reform and financing of public transport will be discussed this week
At the next government meeting on 31 August and beginning of September, the convergence programme, the first package of the health reform, the experiences drawn from social debate about the National Development Plan, and the new regulations on wages will be discussed
Developments under the New Hungary programme which makes use of European Union funding will be discussed by the end of July and decisions will be made by the end of September in order to submit these to Brussels in early October
Decisions on a new law package and pensions will be made by December 2006 (legal amendments will be approved in 2007 and they can come in force from 2008)
Press also speculates that PM Mr Gyurcsány and Finance Minister Mr. Veres are going to visit Frankfurt and London Thursday and Friday this week to calm down investors regarding Hungary's macroeconomic situation.

We view the Government’s commitment to the expenditure side reforms positively.


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