"The only party offering an economic programme that could be implemented in Hungary is the Hungarian Democratic Forum (MDF), said Former Finance Minister Lajos Bokros, the minor opposition party’s Prime Minister candidate. In his state of the nation speech on Sunday, Bokros said theirs was the only programme that would actually bring the results it promises. He also said the country needs a "smart state" with clean hands.Bokros pointed out that very few people pay very large taxes in Hungary, which urges people to try avoid tax. The solution, he said, would be smaller taxes for a lot more people.
From a podium saying "Quality", Bokros said Hungary needs a "smart state, a strong democracy, a strong economy and strong entrepreneurs."
Viktor Orbán, President of main opposition party Fidesz that is widely tipped to win elections in April in a landslide, said on Friday Hungary needs a "strong state", emphasizing the importance of strength all along his state of the nation speech.
Bokros also said Hungary needs a strong central bank that could counterbalance a possibly flawed fiscal policy.
On Friday, Orbán said both the central bank (NBH) and the financial markets supervision (PSZÁF) would need to be "renewed".
"Without sustainable growth that remains high for a long term there is no catching up" [with western Europe]," Bokros noted, adding that economic growth was palpably large only for two to three years over the past decade, while GDP contracted by nearly 7.0% last year.
Referring back to Orbán’s speech once again, Bokros said "the wind does blow from the east; it brings cold and sometimes dictatorship. But fortunately, there are winds from the south as well, blowing from India and Brazil."
On Friday, Orbán pointed to the "unstoppably growing" importance and weight of Asia in the world economy. He stressed that while Hungary is sailing under a western flag, "the winds are blowing from the east."
Bokros argued that the businesses do not need more "parenting" from the state, rather less red tape, more predictable regulations, smaller taxes and more highly skilled and cheaper labour force.
Referring back to the Fidesz chief’s speech yet again, Bokros said that while job creation was of key importance, it is not a task the state should fulfil. A smart state, he said, would need to create an environment (e.g. via regulations) that encourages businesses to invest.
Fidesz has repeatedly said it aims to create one million jobs in ten years.
Hungary’s rate of unemployment was 10.5% in the fourth quarter of 2009, with 442,100 jobless people, about 130,000-150,000 more than at the onset of the economic crisis. There were 3.78 m people employed in Q4 last year, about 100,000 less than in the same period of 2008."
Source: Portfolio Online Financial Journal
09.02.2010