Monday, June 20, 2005

More on the Hungarian economy

Janos Veres, Hungary’s current Finance Minister, in an article on the EU budget is reported by MTI as saying

The Hungarian economy is performing well and those who say the opposite are either incompetent or distorting the facts wilfully, the minister said, arguing that Hungary's GDP growth exceeds the EU-15 average by about 2 percentage points.

From - MTI
Unreal - I wonder what planet Mr. Veres inhabits!

Meanwhile the Governor of the Hungarian National Bank is reported as saying:
The euro can be adopted in Hungary in 2010 only if economic policy reforms are made, budget spending is cut radically - on which politicians already agree - and if they are implemented after the 2006 elections at the latest, central bank governor Zsigmond Jarai told the "Vasarnapi Ujsag" radio show yesterday. Hungary is the least prepared for the adoption of the euro of all new EU members, and is in the middle in terms of competitiveness, Jarai said

See HATC - Economic News
And, it isn't only the Central Bank that can see the the problems
Sándor Csányi, chairman and CEO of OTP Bank Rt, Hungary's flagship retail bank, said he would consider becoming Hungary’s crisis manager in a purely technocratic government if he were to be asked. While denying to have either left or right political leanings, Csányi said he shared more in the economic policies of conservative side. Speaking of Hungary’s economic troubles, Csányi said the most important task that lies before the government is to improve the country's competitiveness, cut taxes, reduce the oversized public administration and introduce radical healthcare reforms.

OTP Chief ready to become Hungary’s crisis manager
It seems not everyone agrees with the Finance Minister including this weblog!

PS. At a guess I 'd say Sándor Csányi is clearly willing to serve in what the Hungarian opposition party, Fidesz, describes as a national unity government. The problem with this approach, that the former Prime Minister and Fidesz leader Victor Orban is championing, is that it may well lead to accusations of being more about nationalist unity than national unity.