Hungary has entered a competitiveness and convergence crisis because its tax system and its employment and social system do not offer enough incentive to work, National Development and Economy Minister Gordon Bajnai said on Tuesday, presenting the Competitiveness Yearbook 2008.
“Hungary will be capable of raising its current 2-3pc economic growth potential if structural reforms are started of the tax system and the employment and social system,” Mr Bajnai said.
The Competitiveness Yearbook 2008 shows Hungary was beaten by Poland, the Czech Republic and Slovakia, and moved closer to Romania and Bulgaria, said Andras Vertes, chairman of think tank GKI. The publication was closed in August 2008, so it does not show the effects of the global crisis, he added.