June 25th, 2012

Matolcsy vows new job creation, growth scheme to fight “stagnation”

Economy minister Gyorgy Matolcsy on Friday pledged to present a programme to promote growth and job creation to the government in the coming weeks.

“The Hungarian economy is stagnating this year. [...] We cannot accept this,” he told a press conference following a meeting of EU finance ministers in Luxembourg on Friday.

Matolcsy said he would ask the government to give the go-ahead to a programme based on the Szell Kalman Plan for economic development and on the fact that the European Union recognised today Hungary’s achievements in fiscal consolidation.

The programme will boost job creation by small and medium-sized enterprises, and the employment of those under 25 or over 55, he said.

Labour taxes should first of all be reduced in employee groups where the rate of employment is much lower than the EU average, he added, without disclosing further details.

Matolcsy welcomed that the EU finance ministers decided to lift a partial suspension of Hungary’s Cohesion Fund allocation introduced as part of an excessive deficit procedure.

“However, the most difficult part is still ahead of us. We have to restart growth, create new jobs and protect existing ones,” he said.

Hungary supports the euro zone “putting its finances in order” as a protracted crisis in the zone carries huge risks for the country, he said.

  • Cnut


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