He also referred to schemes to promote electro-mobility and boost tourism. As for a government scheme to support development projects by large companies ineligible for EU funding, he said initial results were positive and had created 500 jobs so far.

Major economic policy objectives include reducing the public debt and budget deficit while ensuring receipt of revenues, he said. Hungary has cut its public debt to 75% of GDP over the past years from over 80% in 2010 and aims to further reduce it in 2017. Further, Hungary is now less dependent on foreign loans, he added.

Taxes must be cut, Varga said, noting planned cuts to VAT on internet services, basic food stuffs and catering. Hungary welcomes EU funding, he said, but this is for targeted projects.

EU development funding makes up 6% of GDP while domestic funding is 4.0-4.5%, he noted.

Republished with permission of Hungary Matters, MTI’s daily newsletter.

MTI photo: Máthé Zoltán