Prime Minister Gordon Bajnai on Monday urged the next government to cut taxes and social contributions with an emphasis on reducing labour taxes in order to boost Hungary’s economic competitiveness.
Addressing the last session of parliament before the April general election, Bajnai outlined the results of his crisis-management government, and evaluated Hungary’s performance in dealing with the economic crisis positively.
Bajnai said that over the past ten months Hungary had kept its head above water, the government had protected its citizens and paved the way for growth.
He said he expected the Hungarian economy to grow by an annual 4 percent in the period beyond 2011 and generate about 2 trillion forints (EUR 7.4bn) of funds to be spent on improving competition, growth and tax cuts.
Bajnai said that Hungary could be in a position to adopt the euro as early as 2014.
“No sooner, as everyone has had enough of unrealistic promises, but no later, as that would infringe the interests of nearly 2 million Hungarian residents and hundreds of thousands of businesses who are borrowers in foreign currencies,” Bajnai said.
Bajnai said euro adoption would be important in Hungary in order to create conditions for community-wide stability and for predictable growth.
He said the next government should also focus on boosting employment, which in the long run gives the basis for a balanced budget, secure pension system and the country’s finances in general.
He also mentioned education and welfare reform as tasks for the next government.
Bajnai raised his voice for an independent central bank and legal system, which should both be left out of political fighting.
He urged agreement between parties on transparent party financing and the pursuit of corruption-free politics.
Group leader of the main opposition Fidesz party Tibor Navracsics said that Bajnai had refused to take responsibility for his actions, noting that the prime minister would withdraw from politics after the elections. Navracsics added that Bajnai, a premier who has never been elected in a popular vote, should have shown more self-restraint in office.
Deputy group leader of the opposition Christian Democrats Janos Hargitai said Hungary had lost its competitiveness and its former successful status. The government’s poor performance has deprived every Hungarian ten years of their lives, he added.
Group leader of the liberal Free Democrats Janos Koka said the government’s work in the past ten months had been successful in the economy but less satisfactory in handling social problems.
Ibolya David, head of the small conservative Democratic Forum, said that “corruption spun an even tighter web around politics and the economy during the years of coalition government.” She said her party was preparing an anti-corruption package that would soon be sent to the other parliamentary parties. She added that the package would include a new authority to fight corruption, a new, central public procurement office and the reform of political campaign financing.