"Governing by Fidesz may not mean an easy path, but it will bring stability and clear directions, said Mihály Varga, Vice-President of Hungary's main opposition party told the readers of Portfolio.hu in an online interview on Wednesday.He said the current cabinet lacks the ability and the will to lead the country out of the slump. Hungary could find itsself in a situation where its neighbours will forced it to implement a flat-rate personal income tax, he added. Varga is also the Chairman of the Budget Committee in Parliament.
In the following you can read excerpts from Varga's online interview on Portfolio.hu.
On the tax system:
“According to the OECD's latest study, public spending per average wage is the highest in Hungary after Belgium (last year Hungary was ahead of Germany). This brutal public spending is what is weighing down on the economy, hindering entrepreneurship and job creation. The order of things is crucial: it isn't worth talking about tax cuts unless these come together with consolidation."
“One of the most pressing issues nowadays is how to accomplish tax reductions without radical cuts into social transfers. The fact is that under the reign of the Socialist-Free Democrat coalition the performance of the economy diminished to such an extent and the state purse was so depleted that anyone intending to create prosperity and wellbeing will have a real tough nut to crack."
“At the same time, there are spending items the government is discretely keeping silent about. The untimely investments, e.g. digital boards, the bottomless communication and protocol spending all decrease the room for potential tax cuts."
“Unfortunately, the problem is general - squandering is of immense proportions in the whole budget."
On employment:
“If there is a way, we should link employment and social subsidies. [...] Today, every fifth unemployed is freshly graduated. By the use of European Union funds available in the next government cycle we will launch a programme that will directly help create new jobs. In order to catch up with the average employment rate of 64% of the EU, Hungary would need to boost its employment rate by seven percentage points."
On the government:
“The market consensus showed that early elections should be held in Hungary. I also feel that problems that were left unresolved by a majority government cannot be remedied by a minority government. The measures lack exactly what the current Prime Minister does not enjoy: credibility and trust. [...] The government lacks the will and the capability to lead the country out of the social and economic crisis."
On the economic programme of Fidesz:
“There is a programme and we have the experience. We published our basic economic programme, ‘Strong Hungary', last December. We gained experience in governing between 1998 and 2002, and even our rivals admit that this was a balanced and stable period (especially in view of the current affairs)."
“2006 taught us all once again that “you should say what you do, and do what you say". We are not promising an effortless journey. It will not be easy to make up for six years of lagging behind, but a Fidesz government could bring stability and clear directions. [...] Professional debates (within Fidesz) go on in several rounds, which of course does not mean political objectives cannot modify the content. Preparations on the campaign for next year's EU Parliament elections are underway in a number of expert committees. The euro work group, for instance, is headed by former central bank Governor György Szapáry."
On sport:
“- Please give a us a few names you think could be accepted by an appropriately large majority of the society as credible politicians."
Mihály Varga: “- The national ice hockey team. I congratulate them from here!"
Hungary's national hockey team has made it to the world's best in Group A, after beating the Ukrainian team 4-2 in the last game of the Division I World Championship held in Sapporo, Japan on 19 April.
Hungary has qualified for the 2009 IIHF World Championship in Switzerland, to be held between April 24 and May 10 in Bern and Kloten. The last time Hungary's national hockey team played among the elite was in 1939."
Source: Portfolio Online Financial Journal
25.04.2008