Renowned economist László Csaba has lashed out at the Hungarian government, saying it has done too little to restore the country’s economic competitiveness and credibility.
“Investors have run out of patience. Politicians have to decide whether they choose chasing short-term popularity or real governance,” Csaba told conservative daily Magyar Hírlap, adding that the finance ministry is still keeping quiet about tax reforms previously announced on several occasions.
According to the convergence program launched in 2006 following the deficit blowout leading up to that year’s election, stable growth should begin next year. But the paper notes that forecasting groups such as the ICEG European Center and business players such as the Hungarian Association of International Companies (HAIC) and the Hungarian European Business Council (EHBC) see little in the way of progress.
Csaba, who is a professor at Budapest’s Central European University, said he thinks there is still a chance to make a positive shift in economic policy.
But he said that if there is no change, the country will continue to drift and economic growth will fail to breach an annual 2%, a figure that is currently 7-8% in some neighboring countries, allowing them to close the gap with more developed EU member states.