Hungary EcoMin announces 7 new economic policy goals

Right off the bat, Varga underlined that reaching the previously set goal of one million new jobs (within ten years) is not a pipe dream. There are still reserves in this respect, he added, mentioning those employed in public works, employees coming home from abroad and the involvement of the elderly on the labour market.

He addressed commitments made at the previous MKIK events.

• 2015: The goal was to have fewer people submit their own tax returns. This has been achieved by now, he said.
• 2016: Hungary needs to operate without deficit within the foreseeable future. The objective for the general government sector to function without shortfall, both on an accrual-basis and on a cash flow-basis, Varga has set a new target.
• 2017: the goal at that time was annual average GDP growth of over 4%.

Targets

Varga went on to divulge the cabinet’s economic policy plans, including specific dates:

• Growth: economic output growth exceeding the EU average between 2018 and 2022.
• Deficit: Submission of balanced budget bill (no deficit) to Parliament by 2020 (on a cash flow basis).
• General government debt: debt-to-GDP ratio south of 60% by 2022
• Tax wedge: taxes on earnings should be reduced to under the regional level by 2022. Social contribution tax to be lowered to 11.5%.
• Employment: as promised (1 mn new jobs in 10 yrs), 250,000 to 300,000 new jobs by 2020.
• Training facilities: raise the number of people enrolled at corporate training facilities to over 75,000 from 53,000 by 2022.
• Corporates: putting three to four local corporations into the international economic bloodstream as Hungarian brands. In this respect, he has mentioned Tungsram, bus manufacturing (if Ikarus currently comprising several companies was willing to co-operate), and the former Medicor (medical supplies maker).

Jörg Bauer, former Managing Director and Chairman of GE Hungary, has announced a proposed agreement to buy the GE Lighting business in Europe, the Middle East, Africa and Turkey (EMEAT), as well as its Global Automotive Lighting business, through his fully-owned entity. The new organisation would be known as the Tungsram Group.

He said he wants to "reinvigorate a true national brand in Tungsram, the most innovative Hungarian industrial company of the last century."

• Tags:
• mkik,
• economy,
• mihaly varga,
• growth,
• employment