Economy
Hungary may axe up to 150,000 public sector jobs - state secretary
Nándor Csepreghy, deputy minister and state secretary at the Prime Minister’s Office, stressed that the massive headline reduction may take place only if economic growth turns out as expected, because the business sector would be able to take over that many people only then.
During the talk Csepreghy reminded that the government had deliberately signed a co-operation agreement with trade organisations to make sure those laid off from the public sector during the institutional restructuring would transfer to the business sector in a harmonised manner.
Earlier this week, there were reports that as a result of the institutional restructuring announced by János Lázár, the Prime Minister’s cabinet chief, some 6,000 jobs would be axed at ministries and their back office institutions. Local daily newspaper Magyar Nemzet reported today that this is not all, and another 10% of the staff would be sacked at district and county government offices, i.e. another 3,400 public jobs would be gone. Altogether, the measure would affect about 10,000 employees, but Csepreghy said a lot more jobs would be axed in the public sector by the end of the current cycle.
Local business daily Világgazdaság reported today that a three-pronged programme awaits those losing their jobs in the public sector.
These would be the three pillars, according to the paper:
The European Anti-fraud Office (OLAF) announced that it suspects Hungarian inspectors illegally misused European Union funds that were awarded to a Hungarian government agency to fight corruption, Hungarian online daily hvg.hu reported on Sunday.
During its four-year-long investigation OLAF found fraudulent invoices and cash payments at a consultant subcontracting for the former national development agency NFÜ, according to the report.
Csepreghy said that it would be too early to draw conclusions before the investigation is over, but if the suspicions prove to be founded the cabinet will draw the necessary conclusions and call those responsible to account.
During the talk Csepreghy reminded that the government had deliberately signed a co-operation agreement with trade organisations to make sure those laid off from the public sector during the institutional restructuring would transfer to the business sector in a harmonised manner.
The deputy minister underlined that targeting a 150,000-strong streamlining by the end of the cycle is realistic, and that it would involve two groups of people. Those that would be laid off due to the restructuring and those tens of thousands of employees that would retire anyhow by the end of 2018.
Csepreghy underlined that nothing has been set in stone in terms of the institutional downsizing. At present, there is only a list with 73 institutions on it, but it has not been decided yet which will be abolished and which will be integrated [into a ministry], he added.Earlier this week, there were reports that as a result of the institutional restructuring announced by János Lázár, the Prime Minister’s cabinet chief, some 6,000 jobs would be axed at ministries and their back office institutions. Local daily newspaper Magyar Nemzet reported today that this is not all, and another 10% of the staff would be sacked at district and county government offices, i.e. another 3,400 public jobs would be gone. Altogether, the measure would affect about 10,000 employees, but Csepreghy said a lot more jobs would be axed in the public sector by the end of the current cycle.
Local business daily Világgazdaság reported today that a three-pronged programme awaits those losing their jobs in the public sector.
These would be the three pillars, according to the paper:
- Companies hiring people that lost their jobs in the public sector would be granted tax and contribution advantages.
- A retraining programme for skill shortages needs to be worked out.
- A loan programme offering favourable conditions (with limited state guarantee) would be provided by the cabinet for those willing to become self-employed or owners of a business.
The European Anti-fraud Office (OLAF) announced that it suspects Hungarian inspectors illegally misused European Union funds that were awarded to a Hungarian government agency to fight corruption, Hungarian online daily hvg.hu reported on Sunday.
During its four-year-long investigation OLAF found fraudulent invoices and cash payments at a consultant subcontracting for the former national development agency NFÜ, according to the report.
Csepreghy said that it would be too early to draw conclusions before the investigation is over, but if the suspicions prove to be founded the cabinet will draw the necessary conclusions and call those responsible to account.
