Economy
Hungary Finmin keeps optimism about euro target
Never say never – again
The statement is quite peculiar since Prime Minister Ferenc Gyurány has in the past days constantly refrained from confirming the government's 2010 euro target.
His rhetoric rather spelt that they might revise their standpoint. There has not been any official indication yet that the cabinet would set a new “deadline" for EMU membership, which had already been put off to 2010 from 2008.
Veres said substantial changes were needed in three areas so that Hungary would be able to join the euro zone in 2010. These include smaller spending in the public sector, restrictions in the health care system (setting up personal accounts to keep track of social security payments and the services used), and measures to increase the number of skilled labour (have more blue-collar and less white-collar workers).
Hungary spends more on public administration and local governments than the average spending in these areas in the European Union. Veres, however, underlined that any change in this area would require a nod from two thirds of MPs in Parliament. “We will save on bureaucracy in next year's budget," he said.
Gábor Kuncze, the head of junior coalition party, the Alliance of Free Democrats (SZDSZ), has already started lobbying for keeping the 2010 target data, and Economic Minister János Kóka also said in Parliament on Wednesday that the current objective was realistic.
His rhetoric rather spelt that they might revise their standpoint. There has not been any official indication yet that the cabinet would set a new “deadline" for EMU membership, which had already been put off to 2010 from 2008.
Veres said substantial changes were needed in three areas so that Hungary would be able to join the euro zone in 2010. These include smaller spending in the public sector, restrictions in the health care system (setting up personal accounts to keep track of social security payments and the services used), and measures to increase the number of skilled labour (have more blue-collar and less white-collar workers).
Hungary spends more on public administration and local governments than the average spending in these areas in the European Union. Veres, however, underlined that any change in this area would require a nod from two thirds of MPs in Parliament. “We will save on bureaucracy in next year's budget," he said.
Gábor Kuncze, the head of junior coalition party, the Alliance of Free Democrats (SZDSZ), has already started lobbying for keeping the 2010 target data, and Economic Minister János Kóka also said in Parliament on Wednesday that the current objective was realistic.
