PM Starts Seeking Allies For Second Reform Wave In 2009

 He said that up until 15 December (the final vote on the 2009 Budget) he would focus on next year's budget, but from then onward he would seek to gain wider support for reforms that could not be successful without backing from the majority of the population.

“I'm seeking allies to start the second wave of (our) reform policy," the PM told a press conference.

Gyurcsány has provided a list of the key actions for the next four to six years, which included:
- reduced red tape in the management of local governments;
- a much smaller Parliament (today it comprises 386 MPs), the amendment of the Election Act;
- a reshuffle of the tax and contribution regime (only internal regrouping in 2010-11 considering budget balance requirements). The PM wants to reach an agreement on necessary changes in the tax system by early next year so that the first changes could be implemented in the second half;
- more targeted social benefits, spurring people more strongly to work (no possibility to curb expenditure in this area);
- reform in higher education;
- bigger financial freedom at budgetary organs.

Two or three of these may be carried out in the next 18 months, Gyurcsány added.

He stressed he would start only those reforms that enjoy the support of the majority of the society.

“In the current budget structure you cannot save hundreds of billions of forints," the PM said, practically saying no to the policy of major redistribution reduction founded on revenue and expenditure decrease.

With regard to the 13th-month pension (which will be scrapped for those who retired before the statutory retirement age and capped at HUF 80,000 for the “regular" pensioners) the PM said the issue would be addressed every year beyond 2009.

It has turned out only recently that the changes would apply not only for 2009, as it was hinted previously."

Source: Portfolio Online Financial Journal