Economy
Hungary's achivements can come crumbling down in 5 minutes - Bokros
A clear distinction should be made between crisis management and reforms, said Bokros, who is also an MEP (Member of the European Parliament) of minor opposition party, the Hungarian Democratic Forum (MDF).
At a conference organised by the International Centre for Economic Growth (ICEG) and the Hungarian Business Leaders Forum (HBLF) on Friday, he pointed out that structural reforms are yet to be carried out. The public sector remains oversized and both its revenue and spending structures are flawed, he added. Resolving these problems will be the challenge for the next cabinet.
In view of what he has seen taking place in Ukraine, Lithuania and Poland this week, Bokros believes there is reason to be “cautiously optimistic" about Hungary’s prospects in terms of the implications of the crisis.
“If the forint had not depreciated to 300 (vs. the euro) the contraction of the economy would be 10% rather than 7%," Bokros said. (The Hungarian government projects GDP to fall by 6.7% in 2009 and 0.6% in 2010.)
He noted that recession is extremely grave in the Baltic States now because their fixed exchange rate regimes did not allow their currencies to weaken.
Bokros reiterated his recurring view that “implementing reforms is overdue in Hungary, but it’s never too late (to launch them) and without these the country will fall behind."
While he acknowledged that there should be discussions about uncertainties surrounding the 2010 budget, Bokros pointed out that several teams of experts have checked it and there are no skeletons in the closet (as main opposition party Fidesz said there are - Editor’s note).
It will “additional nails into the Hungarian economy’s coffin" if a party will campaign by saying that the 13th-month pension and the old family subsidy system will need to be restored and traffic will need to be re-launched on train routes that have been shot down. “These would be clearly anti-reform measures," he added.
At a conference organised by the International Centre for Economic Growth (ICEG) and the Hungarian Business Leaders Forum (HBLF) on Friday, he pointed out that structural reforms are yet to be carried out. The public sector remains oversized and both its revenue and spending structures are flawed, he added. Resolving these problems will be the challenge for the next cabinet.
In view of what he has seen taking place in Ukraine, Lithuania and Poland this week, Bokros believes there is reason to be “cautiously optimistic" about Hungary’s prospects in terms of the implications of the crisis.
“If the forint had not depreciated to 300 (vs. the euro) the contraction of the economy would be 10% rather than 7%," Bokros said. (The Hungarian government projects GDP to fall by 6.7% in 2009 and 0.6% in 2010.)
He noted that recession is extremely grave in the Baltic States now because their fixed exchange rate regimes did not allow their currencies to weaken.
Bokros reiterated his recurring view that “implementing reforms is overdue in Hungary, but it’s never too late (to launch them) and without these the country will fall behind."
While he acknowledged that there should be discussions about uncertainties surrounding the 2010 budget, Bokros pointed out that several teams of experts have checked it and there are no skeletons in the closet (as main opposition party Fidesz said there are - Editor’s note).
It will “additional nails into the Hungarian economy’s coffin" if a party will campaign by saying that the 13th-month pension and the old family subsidy system will need to be restored and traffic will need to be re-launched on train routes that have been shot down. “These would be clearly anti-reform measures," he added.
