Hungary’s government does not support the proposals submitted by a group of experts, said a document leaked to MTI on Monday.
According to the study commissioned by the government, the proposals of the Reform Alliance (RA) that were made public on February 21, would result in a slower growth rate, higher inflation, and a higher state budget deficit in 2009.
The document regarded the RA proposals negative, considering its macroeconomic effects, that would slow down the growth rate by 0.5 percent this year and in 2010, and by 1 percent in 2011.
The state budget deficit would be 3.4 percent this year, and inflation would be 0.7-0.8 percentage points higher, if the recommendations by the RA were adopted rather than the one worked out by the government, the experts said.
Another problematic point would be employment, because although it would significantly grow in the private sector, it would result in an 8-10 percent streamlining in the public sector.
The RA also recommended the introduction of the euro in 2012, but according to the government’s document, the inflational effects of the steps they recommended to be taken until then would make it very difficult to fulfil the European Union’s Maastricht criteria.
The RA issued a statement last Friday, and welcomed that the political powers showed inclination to adopt their proposals.
In their view if they were adopted, the acceleration of economic growth would be perceptible within 4-5 years.
However, they said they did not want to participate in political wranglings. “We do not have the power, nor the will to influence the political parties,” they said.
The Reform Alliance was set up last year from economic and science leaders.