politics
March 11, 2010, 09:36 CET
Russian bank pays Malév guarantee
The state-owned Russian Vnesheconombank has transferred the EUR 32m bank guarantee that is part of Hungarian national carrier Malev's former privatisation contract, Finance Ministry spokesman Ferenc Pichler told MTI. According to an agreement late February between Malev's owners and the... [read complete entry]
March 11, 2010, 09:33 CET
State infrastructure company issues tender for building of roads to race track
Hungary's National Infrastructure Development Company (NIF) has issued a tender for construction of roads necessary to reach a planned MotoGP motorcycle track in the village of Savoly near Lake Balaton, the latest issue of the Public Procurement Gazette reveals. The... [read complete entry]
March 11, 2010, 09:32 CET
Accountant warned Demszky over BKV in 2006
A staff accountant at Budapest public transport company BKV told mayor Gábor Demszky that its employees "steal, cheat, embezzle and produce bogus invoices", in a letter in 2006. Demszky ignored the letter, explaining that the accountant had not specified details.... [read complete entry]
March 10, 2010, 12:10 CET
Former BKV chief named as a suspect in corruption case
Former BKV chief Zsolt Balogh has been named as a suspect in the scandal involving Budapest public transport operator BKV, index.hu reports, based on other reports appearing in the press. Balogh recently implicated several Socialist politicians from Budapest in a... [read complete entry]
March 10, 2010, 09:37 CET
Bajnai gov't spends half of budget reserves available in first half 2010
The Bajnai government has already spent about half of the budget reserves available to it in the first half of the year. The 2010 budget contains 57.3 billion forints (EUR 214.44m) of general reserves, of which the government may spend... [read complete entry]
March 10, 2010, 09:36 CET
Euro entry in 2015 or 2016, former central bank head says
The situation in Hungary is "not ripe" for the euro; the European currency could only be adopted in 2015 or 2016, former central bank governor Zsigmond Jarai said in Budapest on Tuesday. Speaking at a conference of the Association of... [read complete entry]
March 09, 2010, 09:50 CET
Fidesz sets up economic investigation committee
The main opposition Fidesz party has decided to set up an "economic fact finding committee", party leader Viktor Orban told a business forum on Monday. Orban spoke at an economic policy conference of the Federation of Entrepreneurs and Employers, and... [read complete entry]
March 09, 2010, 09:49 CET
Orbán vows to cut taxes to match regional peers
Hungary's main opposition party Fidesz plans to reduce the tax burden of businesses to the level of other countries of the region within four years, and to cut taxes paid by individuals to the level of regional peers in six... [read complete entry]
March 09, 2010, 09:37 CET
MFB to sign MotoGP track credit contract only if all conditions in order
The Hungarian Development Bank (MFB) will sign the HUF 15.3bn (EUR 57.58m) credit contract for the planned motorcycle racetrack near Lake Balaton if all conditions regarding the credit and the collaterals are in order as judged by the bank and... [read complete entry]
March 09, 2010, 09:30 CET
You chance to tell the world how much doing business in Hungary stinks
Via our friends at the British Chamber of Commerce in Hungary we found this link to an interesting and probably very worthwhile survey on economic and business climate conditions in the region by a group of German chambers. It's a... [read complete entry]
March 08, 2010, 10:19 CET
EU regional policy investment, no charity, says commissioner
The EU's regional policy is an investment, not a charity, which is aimed at bringing the less developed regions closer to the level of the most developed, the EU's Regional Policy Commissioner told a conference of the European People's Party... [read complete entry]
March 08, 2010, 09:47 CET
Hungary EU funds agency rejects corruption charges
Hungary's National Development and Economy Ministry, which is responsible for handling EU funds, rejected main opposition Fidesz's recent allegations of corruption and fraud surrounding the use of EU funds, the deputy minister said on Friday. Laszlo Varju said Hungary is... [read complete entry]
March 08, 2010, 09:42 CET
Next gov't would extend moratorium on farmland purchases by foreigners
Hungary's next government will apply to the European Union for an extension of the moratorium on purchases of farmland by foreigners, chairman of Parliament's agricultural committee Sandor Font, a member of opposition Fidesz, which is tipped to win general elections... [read complete entry]
March 05, 2010, 09:50 CET
Truth about Hungarian economy must be revealed, Orbán says
Hungary's future government will have to reveal to the public the state of the economy after the upcoming elections, head of the main opposition Fidesz party Viktor Orban said in Budapest on Thursday. Addressing a meeting of the European People's... [read complete entry]
March 05, 2010, 09:49 CET
European Conservatives and Reformists leader praises Bokros' ideas
The head of the EP group of European Conservatives and Reformists (ECR) said on Thursday that the ideas of conservative Democratic Forum PM-candidate Lajos Bokros would be "the best for Hungary". "The Forum's PM-candidate has mature ideas about how Hungary... [read complete entry]
March 05, 2010, 09:47 CET
EU Commissioner Andor calls for strong pension reform
EU pension systems need to be overhauled, especially in terms of changing the age of retirement, not because of the economic crisis but due to an aging population, Laszlo Andor, EU Commissioner for Employment, Social Affairs and Inclusion, told MTI... [read complete entry]
March 05, 2010, 09:42 CET
N Hungary national park goes bankrupt
Aggtelek National Park (ANP) has gone bankrupt with only Ft 20 million in its account, which is only sufficient to pay its staff salaries, Magyar Hírlap reports. According to the daily the Environment Ministry has transferred this sum as a... [read complete entry]
March 05, 2010, 09:41 CET
PM stresses importance of restoring prestige of work
Hungary's future depends on whether we can restore the prestige of work, Prime Minister Gordon Bajnai said in a lecture at the Széchenyi István University in Győr on Thursday. The premier said 56-57% of Hungary's working age population are in... [read complete entry]
March 04, 2010, 03:13 CET
New governmental portal costing billions taken offline after a few hours
Hungary's online public administration service Ügyfélkapu ("Client Gateway", which currently has 850,000 registered users) returned to its old version after a brand-spanking new version launched on March 1 experienced many errors following its launch. According to hirextra.hu, no date has... [read complete entry]
March 03, 2010, 10:19 CET
Government issues decree on Malév renationalization
A government decree on the renationalisation of airline Malev was published on Tuesday. The decree outlines the terms of an agreement reached late Friday between Malev's owners and the Finance Ministry under which the Hungarian state will take over 95pc... [read complete entry]
March 03, 2010, 09:58 CET
IMF held no talks with Hungary opposition leaders, fund representative says
The International Monetary Fund has not held negotiations with main Hungarian opposition party Fidesz, IMF representative in Hungary Iryna Ivaschenko told Reuters on Tuesday. Fidesz is widely expected to win the general election due in April. The meeting in February... [read complete entry]
March 03, 2010, 09:49 CET
Analysts say parties offer similar prescriptions for Hungary's ills
Tax cuts and employment growth are the main prescriptions offered by Hungary's major political parties to cure the country's lackluster competitiveness and its social ills. Gordon Bajnai, who is standing down as prime minister, has been a cheerleader for tax... [read complete entry]
March 03, 2010, 09:38 CET
Fidesz leader says pact with IMF premature
Viktor Orban, leader of conservative party Fidesz, said on Tuesday he had not tried to negotiate a deal with the IMF ahead of the spring elections. Orban spoke in response to calls from the ruling Socialists to make public the... [read complete entry]
March 03, 2010, 09:31 CET
Fidesz announces plans for Budapest museum quarter
Once in power in Budapest, the main opposition Fidesz party plans to build a museum quarter around the area of the Nyugati (Western) Railway station over the next 15 years, the party's candidate for mayor told national daily Nepszabadsag on... [read complete entry]
March 02, 2010, 09:54 CET
Fidesz confirms it is seeking new terms with IMF
Hungary's conservative Fidesz party is preparing the ground for renegotiating terms with the IMF if they assume power after the April elections, Mihaly Varga, the party's deputy leader and senior economic policymaker, said in a television interview. Fidesz has met... [read complete entry]
March 02, 2010, 09:53 CET
Hungary to up support for businesses outside country
The Hungarian government has increased the support granted to Hungarian businesses operating in neighbouring countries by 250 million forints (EUR 926,000) for this year, minister for social coordination Peter Kiss told a conference of enterprise promotion centres at Subotica, N... [read complete entry]
March 02, 2010, 09:24 CET
MotoGP track investors deny state-back loan is subsidy
A group of investors building a MotoGP motorcycle racetrack near Lake Balaton has said a HUF 15.3bn loan from the state-owned Hungarian Development Bank is being granted project company Savoly Motorcentrum Fejleszto under market conditions, and a HUF 20bn state... [read complete entry]
March 02, 2010, 09:21 CET
MDF sees education, tax as key reform areas
Education and tax reform in Hungary are key components of job creation in the small-business sector, Lajos Bokros, prime-minister candidate of the Democratic Forum, said on Monday. Bokros said small businesses needed the right conditions to create jobs out through... [read complete entry]
March 01, 2010, 10:34 CET
Christian Democrats call for tax cuts
Christian Democrat leader Zsolt Semjen on Saturday pressed for tax cuts as an indispensable condition for Hungarian businesses to stay afloat. "The tax rises and austerity packages advocated by the neoliberals do not offer a passable road," he said at... [read complete entry]
March 01, 2010, 09:49 CET
Gov't issues decree on national broadband access project
The government has issued a decree on implementing the National Digital Public Utility project, which will bring broadband internet to all of communities in Hungary, government commissioner in charge of infocommunications Ferenc Baja said at a press conference on Friday.... [read complete entry]
March 01, 2010, 09:39 CET
PM Bajnai envisages Hungary's euro-entry in 2014
The European currency can be introduced in Hungary on January 1, 2014 if the current economic policy is continued, Prime Minister Gordon Bajnai said on Friday. Bajnai spoke at a business forum in Komlo (SW) and said that out of... [read complete entry]
March 01, 2010, 09:38 CET
Upgrading Hungary's nuclear plant strategic issue, says PM
Upgrading the only nuclear power plant in Hungary is a "national, strategic" issue, Prime Minister Gordon Bajnai told reporters in Paks (C) on Friday. Bajnai spoke following a board meeting of the Hungarian Electric Works (MVM) and said that the... [read complete entry]
March 01, 2010, 09:36 CET
Hungarian airlines Malév renationalized
Malév will be almost fully renationalised after the Hungarian state agreed to take over the company in lieu of debts it is owed by the airline at an EGM on Friday. Hungary agreed to take a 95% stake valued at... [read complete entry]
March 01, 2010, 09:36 CET
Rumors spreading of Fidesz-IMF deal
Fidesz representatives and the IMF have held preliminary negotiations, according to rumours that were rife in London on Friday. The IMF has allegedly told Fidesz - the clear favourite to win the national elections in April - that it would... [read complete entry]
February 26, 2010, 09:59 CET
Finance minister says 2010 deficit target feasible if budget discipline is maintained
Finance minister Peter Oszko told MTI Thursday that Hungary's 2010 general government deficit target of 3.8pc of GDP is feasible if budget discipline is maintained. The finance minister added that meeting the 2011 target of 2.8pc will require further measures,... [read complete entry]
February 26, 2010, 09:54 CET
Transparency International calls for halt to Balatonring project
Three NGOs have demanded that the government suspend financing of the Balatonring motorcycle race track at Sávoly, based on the findings of a feasibility study conducted by financial consultants KPMG. Transparency International, K-Monitor and the Civil Liberties Union have published... [read complete entry]
February 25, 2010, 10:43 CET
Hungary to face tough times, Fidesz parliamentary leader says in interview
Fidesz parliamentary leader Tibor Navracsics gave warning in a press interview on Thursday that Hungary would face very tough times during its exit from the current economic crisis. "The road leading out of the forest is more or less as... [read complete entry]
February 25, 2010, 10:41 CET
Former central bank chief calls for structural reforms, spending cuts
Hungary's former central bank governor and finance minister Zsigmond Jarai called for structural reforms and cuts in state spending at an economic forum on Wednesday. Mr Jarai said that state redistribution should be scaled back to below 40pc in the... [read complete entry]
February 24, 2010, 10:09 CET
2009 low point for Hungary in terms of FDI, says economy minister
Last year was a low point for Hungary in terms of foreign direct investment (FDI), economy minister Istvan Varga said at a conference organised by the Joint Venture Association, the Hungarian Investment and Trade Development Agency and the Hungarian Foreign... [read complete entry]
February 23, 2010, 09:40 CET
Hungary's prime minister urges tax cuts, competitiveness
Prime Minister Gordon Bajnai on Monday urged the next government to cut taxes and social contributions with an emphasis on reducing labour taxes in order to boost Hungary's economic competitiveness. Addressing the last session of parliament before the April general... [read complete entry]
February 19, 2010, 10:32 CET
Single-party gov't would give economy great opportunity, says opposition head
The establishment of a single-party government after general elections would open the way to enormous opportunity for the Hungarian economy, Viktor Orban, head of opposition Fidesz, told members of the Hungarian Industry of Trade and Industry (MKIK) on Thursday. The... [read complete entry]
February 19, 2010, 10:30 CET
Socialist PM candidate offers pension bonus
Hungary's pensioners could receive a bonus of up to their weekly pension if the current fiscal policy is carried on after the April general elections, Attila Mesterhazy, prime minister candidate of the ruling Socialist Party, said at a campaign rally... [read complete entry]
February 19, 2010, 10:24 CET
Opposition leader vows to "Hungarianize" economy
Viktor Orban, tipped to head the next government after the April election, said in a keynote speech on the economy on Thursday that the essence of his national policy was to "set Hungary's economy on Hungarian feet". The next government's... [read complete entry]
February 19, 2010, 10:19 CET
Former BKV head accuses Socialist politicians in confession
Former BKV CEO Zsolt Balogh implicated several senior Socialist Budapest politicians in a confession to police, Magyar Hírlap writes, adding that he told detectives which Socialist politicians had received money taken from the BKV. Balogh, who ran the BKV from... [read complete entry]
February 18, 2010, 10:25 CET
Opposition economy expert sees deficit reaching as much as 7.5% of GDP in 2010
Mihaly Varga, the economic expert for opposition Fidesz, which is tipped to win general elections in April, thinks Hungary's budget deficit could reach 7-7.5pc of GDP this year, an interview published in political weekly Demokrata reveals. Hungary's government targets a... [read complete entry]
February 18, 2010, 10:21 CET
Decree makes foreign companies eligible for ROLA subsidies in Hungary
Hungary's transport minister has opened a tender supporting rolling road (ROLA) trains that carry lorry trailers to foreign companies, according to a decree in the latest issue of the official gazette Magyar Kozlony. Companies are eligible for up to EUR... [read complete entry]
February 18, 2010, 10:18 CET
Hungary in good position to adopt euro in 2014, Bajnai says in interview
Hungarian Prime Minister Gordon Bajnai said there is a chance that Hungary can adopt the euro in 2014 whatever the outcome of the April general election. In an article in Thursday's Nepszabadsag daily, Bajnai said that Hungarian crisis management was... [read complete entry]
February 18, 2010, 10:17 CET
Fidesz economy spokesman eyes 2015 euro entry
Mihaly Varga, opposition Fidesz's economy spokesman, said in an interview that Hungary was likely to join the euro in 2015. Varga, a former Fidesz finance minister, gave warning however that budget deficit could hit up to 7.5 percent of gross... [read complete entry]
February 17, 2010, 10:34 CET
Budapest transport company scandal spirals on
A Budapest court on Tuesday ordered the pretrial detention of another manager of scandal-ridden Budapest transport company BKV. Former Communications Director Miklos Regoczi is suspected of mismanagement of public funds worth 81 million forints (298,000 euros). Regoczi has been held... [read complete entry]
February 16, 2010, 09:58 CET
IMF-EU delegation gives Hungary good marks but says further measures necessary
Hungary's government has taken sufficient measures to stabilise the economy, but a strict fiscal policy as well as maintaining risk reserves is still necessary, and further measures must be taken in 2011 to bring the general government deficit under 3pc... [read complete entry]
February 16, 2010, 09:24 CET
Oszkó ups GDP forecast for 2010
Hungary's economy will shrink by 0.2 percent in 2010, a touch better than the government's previous forecast of a contraction of 0.3 percent, the finance minister said on Monday. Peter Oszko also told a news conference that the budget deficit... [read complete entry]
February 16, 2010, 09:22 CET
Hungarian MPs favor ban on sale of farmland to foreigners
Parliament yesterday approved a resolution calling on the government to get the EU to extend a ban on the purchase of land by foreigners for another three years. The current moratorium will end in 2011. All MPs with the exception... [read complete entry]
February 15, 2010, 10:36 CET
Main opposition Fidesz to privatize state-owned farmland
Hungary's main opposition Fidesz plans to privatise state-owned farmland before a moratorium on land purchases by foreigners expires in 2011 in order to ensure that domestic farmers are protected, daily Nepszabadsag said on Monday. The paper, without giving a source,... [read complete entry]
February 12, 2010, 11:19 CET
Police investigation launched into unfinished "Design Terminál" project
The Hungarian police last month launched an official investigation in relation to the "Design Terminál" - a planned center for innovation and design on Budapest's Erzsébet tér, hirszerzo.hu reports. According to documents created during an internal investigation, there were errors... [read complete entry]
February 12, 2010, 10:02 CET
FM bumps up full-year deficit target, but GDP-term gap unchanged
The Finance Ministry said on Thursday it raised its 2010 cash flow-based budget deficit target to HUF 878.9bn from HUF 870.3bn, but the new target is still equivalent to 3.3pc of GDP. The ministry raised the target on the expenditure... [read complete entry]
February 11, 2010, 09:41 CET
Hungarian gov't to extend land sale moratorium for foreigners
The cabinet will extend the moratorium banning foreigners from purchasing land in Hungary by three years, to 2014, if it is supported by the EU, Agriculture Minister József Gráf told MTI-Eco on Wednesday. Gráf said cheap land prices and a... [read complete entry]
February 11, 2010, 09:36 CET
Police investigate private consultancy over Budapest transport payments
Police have started investigating consultancies which advised Budapest's scandal-ridden transport company BKV, focusing on a firm whose senior partner is said to have charged 100,000 forints an hour. The firm Central European Management Intelligence (CEMI) signed a contract with BKV... [read complete entry]
February 10, 2010, 10:43 CET
Hungary foreign ministry to sell several properties abroad
The Foreign Ministry is making preparations to sell some of its properties abroad, Peter Balazs, the foreign minister, told reporters on Tuesday. Valuable properties that are not currently used, such as Hungary's former embassy in Bonn, will be sold through... [read complete entry]
February 10, 2010, 10:42 CET
FM says Russian proposals regarding Malév contradict Hungarian and EU law
Russian-government proposals regarding resolution of the capital situation of Hungarian national airline Malev infringe both European Union and Hungarian law, Hungary's Finance Ministry told MTI on Wednesday. Representatives from Russia's AirBridge, which owns 99.95pc of Malev, informed shareholders that Hungary's... [read complete entry]
February 10, 2010, 09:44 CET
Pre-election tax vows not viable, Orbán says in interview
There should not be a flat tax rate, several tax rates are necessary, Fidesz chairman Viktor Orbán told TV2 on Tuesday. The opposition leader asserted that as many tax cuts as possible will be made, but said he cannot give... [read complete entry]
February 09, 2010, 09:24 CET
Orbán offers funding to energy-saving households
If Fidesz forms Hungary's next government, it will set up a "green bank" to finance the rehabilitation of pre-fab housing estates and improvements in the homes to facilitate more economical heating, Viktor Orban, head of the main opposition party, said... [read complete entry]
February 08, 2010, 10:29 CET
Budapest mayor Demszky's senior adviser in custody
A court put Ernő Mesterházy, senior adviser to mayor Gábor Demszky, and former PR head of the Budapest public transport company (BKV) Tibor Zelenák in custody on Friday. Former deputy CEO of BKV Miklós Regőczi was placed under house arrest.... [read complete entry]
February 05, 2010, 12:10 CET
Finance Minister challenges blogger over reforms
Finance Minister Péter Oszkó has posted a detailed comment on the blog of Edward Hugh, the author of Hungary Economy Watch. Oszkó counters the blogger’s criticisms of the effectiveness of the government's fiscal measures and questions the value of drawing... [read complete entry]
February 05, 2010, 10:56 CET
IMF, EU delegations start post-bailout review of Hungary
Delegations from the International Monetary Fund and the European Commission on Wednesday began the latest reviews of a EUR 20bn financial support package Hungary was granted in November 2008. The quarterly review is the fifth by the IMF and the... [read complete entry]
February 05, 2010, 10:44 CET
Socialist says ban on land sales to foreigners should continue
Socialist party prime-minister candidate Attila Mesterhazy said on Thursday that he had asked the Hungarian government to lobby for an extension of the suspension of farmland purchases by foreigners. Mesterhazy, who is urging a three-year extension beyond May 2011, said... [read complete entry]
February 05, 2010, 10:23 CET
Hungary, US sign deal on double taxation
Hungary and the United States have signed an agreement designed to avoid double taxation, the Finance Ministry told MTI on Thursday. The new agremeent will replace the one signed in 1979. Finance Minister Peter Oszko signed on behalf of Hungary... [read complete entry]
February 04, 2010, 09:48 CET
Staff of 700 to work for Hungarian EU presidency
Hungary will employ a staff of 700 to work under the Hungarian EU presidency in the first half of 2011, mainly civil servants already dealing with EU affairs, the Foreign Ministry told MTI on Wednesday. Spain, Belgium and Hungary are... [read complete entry]
February 03, 2010, 09:19 CET
Opposition's Orbán to lecture in Frankfurt on Hungarian economy
Main opposition Fidesz party leader Viktor Orban will leave for Frankfurt on Wednesday to give a talk on Hungary's economic situation, challenges and options for renewal, Peter Szijjarto, head of Orban's office, said in a statement on Tuesday. Orban is... [read complete entry]
February 02, 2010, 09:49 CET
Building of new Budapest opera house descends into tragicomedy
How's this for an utterly predictable storyline: Construction of a new building to replace the now-closed Erkel Theater on Köztársaság tér in Budapest's District VIII is being delayed - and may be halted indefinitely - due to obstructionism on the... [read complete entry]
February 02, 2010, 09:25 CET
Opposition Fidesz slams gov't for six-year civil-servant contracts
Opposition Fidesz - tipped to form the next government after the April elections - rejects the Socialist government's appointment of civil servants for six years, Fidesz MP Robert Repassy told a news conference on Monday. Repassy said that the Socialists... [read complete entry]
February 02, 2010, 09:21 CET
Gov't promises no property will be auctioned off until April
Occupied properties may not be auctioned off until April 15, the end of the heating season, Social Policy Minister Péter Kiss said on Monday, outlining the cabinet's decision. The decision will take effect on Tuesday. Kiss added that local authorities... [read complete entry]
February 01, 2010, 09:41 CET
New state pension revenue could help plug property tax gap
Unexpected revenue gains in Hungary's state pension fund could be used to offset a gap in the budget due to the axing of the residential property tax, business daily Napi Gazdasag said on Friday. The government announced earlier this week... [read complete entry]
January 29, 2010, 10:14 CET
Property tax requires more preparation, say opposition Fidesz
A tax on residential properties could be introduced but not in the short term and only after "due preparations" and wide-scale public discussion, Laszlo Madi, an expert of the main opposition Fidesz party, told a conference of real estate brokers... [read complete entry]
January 28, 2010, 10:17 CET
Labour Ministry to launch Ft 500 million job preservation program
The Ministry of Welfare and Labour Affairs on Wednesday said it will launch a HUF 500m job preservation programme on February 1. The ministry wants to preserve 3,500-4,000 jobs with the programme, similar to last year The programme aims to... [read complete entry]
January 28, 2010, 10:15 CET
EU awards Hungary high marks on deficit, but says more measures needed
The European Commission on Wednesday said Hungary had taken effective action to correct its budget deficit, but added the country needs to take additional measures to bring the gap below 3 percent of gross domestic product by the 2011 deadline.... [read complete entry]
January 28, 2010, 10:13 CET
Bajnai calls time on property tax change
Time has run out to make any changes to the property tax law which was thrown out by the Constitutional Court, Prime Minister Gordon Bajnai said on Wednesday. In the next few weeks the government will review the budget reserves... [read complete entry]
January 27, 2010, 09:40 CET
Property tax bill ruled unconstitutional
The Constitutional Court on Tuesday struck down provisions of the wealth tax bill pertaining to a planned property tax. The Court found unanimously that the requirement for homeowners to establish the value of their property for tax purposes creates legal... [read complete entry]
January 25, 2010, 04:29 CET
District V involved in "blackmail" over parliamentary parking garage permits
Budapest's District V will only issue a construction permit for an underground garage and a visitor center at the Parliament building in exchange for over Ft 175 million (roughly €643,000), daily Népszabadság learned. According to the paper, Parking Kft is... [read complete entry]
January 25, 2010, 10:37 CET
Gov't expects asset tax to pass constitutional test
The government expects its new tax on high-value assets to pass muster with the Constitutional Court as the tax was created taking the court's earlier decisions into mind, government spokesman Domokos Szollar said on Friday. The tax is expected to... [read complete entry]
January 25, 2010, 10:35 CET
Decree establishes mandatory vehicle insurance compensation fund
Hungarian companies that sell mandatory vehicle insurance will have to pay 0.25pc of their revenue from premiums on such policies into a compensation fund to be drawn on if an insurer goes bust, according to a decree by the finance... [read complete entry]
January 25, 2010, 09:53 CET
Socialists, Fidesz start signature drive on pension reform
Hungary's governing Socialists and main rival opposition Fidesz parties will send out the same questions on pension reform in a signature drive, the parties' officials told the press on Saturday. Fidesz's pensioners chapter will start a petition against raising the... [read complete entry]
January 25, 2010, 09:50 CET
DemForum PM candidate calls pension system unsustainable
Lajos Bokros, prime minister-candidate of the conservative opposition MDF party, on Friday called Hungary's current pension system unsustainable, and pressed for more competition and closer proximity to labour market needs in higher education. "The pension system is untenable in its... [read complete entry]
January 22, 2010, 10:17 CET
PM, Seniors' Council reject need for pension reform
There is no need for immediate changes to Hungary's pension system, Prime Minister Gordon Bajnai told a meeting of the Seniors' Council on Thursday. Deputy Welfare Minister Lajos Korozs, who is Secretary of the Seniors' Council, said that members agreed... [read complete entry]
January 21, 2010, 09:51 CET
Hungarian news agency chairman for strong public-service media
Chairman of the Hungarian national news agency MTI Matyas Vince called for the fortification of public-service media in an interview to be published in Thursday's issue of weekly Magyar Narancs sent to MTI on Wednesday. Vince said that in order... [read complete entry]
January 21, 2010, 09:49 CET
Egypt should join the International Nabucco Board, says Hungary committee head
Chairman of Hungary's ad hoc parliamentary committee for the Nabucco pipeline Janos Koka proposed on Wednesday that Egypt should join the International Nabucco Board, which provides political support to the Nabucco project. Koka told a press conference held jointly with... [read complete entry]
January 21, 2010, 09:47 CET
IMF warns Hungary opposition that 7% of GDP deficit too high
The International Monetary Fund (IMF) warned Hungary on Wednesday that it would not tolerate a rise in the country's budget deficit to 7 percent of gross domestic product (GDP), Dow Jones reported on Wednesday. The main opposition party Fidesz, likely... [read complete entry]
January 20, 2010, 08:42 CET
Veres nominated for EBRD vice president
Prime Minister Gordon Bajnai has nominated former Finance Minister Janos Veres for a vice president's post at the European Bank for Reconstruction and Development (EBRD), daily Nepszabadsag said on Wednesday, citing its "own reliable sources". Mr Veres was Finance Minister... [read complete entry]
January 20, 2010, 08:41 CET
FinMin says Hungary to raise its GDP outlook for 2010
Hungary's economy is likely to grow in 2010 as opposed to the government's initial projection of a contraction of 0.6 percent thanks to an improving export outlook, Finance Minister Peter Oszko said on Tuesday. The revised forecast will be released... [read complete entry]
January 20, 2010, 08:40 CET
Hungary's economy has to grow faster than EU average, says PM
After the crisis, Hungary's growth rate must exceed the European Union average by two percentage points if the country's economy is to be competitive and attract investors, Prime Minister Gordon Bajnai said at a conference in Vienna on Tuesday. Bajnai... [read complete entry]
January 19, 2010, 09:40 CET
Democratic Forum backs Swedish pension model for Hungary
The Democratic Forum, a small conservative party, backs the introduction of a Swedish-type pension system in Hungary, a party official told a news conference on Monday. Broadly, the Swedish pension system has three main elements -- a national retirement pension,... [read complete entry]
January 19, 2010, 09:30 CET
Finance minister says Hungary no longer needs IMF support
Finance Minister Peter Oszko told the Financial Times that Hungary no longer needs the International Monetary Fund's financial support, the newspaper reported on Monday. Mr Oszko told Financial Times that Hungary has become able to generate the country's external-financing requirements... [read complete entry]
January 19, 2010, 09:29 CET
Gov't to submit bill increasing PSZAF powers over banks
The government plans to submit a bill to parliament by February 12 pursuant to its commitment to the International Monetary Fund giving increased powers to financial-market regulator PSZAF over the operations of banks, the daily Nepszabadsag reported on Monday. The... [read complete entry]
January 18, 2010, 11:21 CET
MDF proposes constitutional cap on state debt
Small conservative party MDF is proposing the introduction of a constitutional limit on Hungary's state debt, Lajos Bokros, MDF's MEP and a former finance minister who authored an austerity package in the 1990s, said at a press conference in Budapest... [read complete entry]
January 18, 2010, 11:18 CET
Fidesz makes pension pledges
Hungary's main opposition Fidesz plans to preserve the value of pensions and block the privatisation of the pension providers as well as guaranteeing the retirement of women after 40 years of work, Tibor Navracsics, the party's parliamentary leader, told a... [read complete entry]
January 18, 2010, 11:11 CET
Customs police search three Roma offices
The Customs and Excise Office (VPOP) police are conducting a search of two Budapest offices of the Hungary's national Roma self-government (OCO) and the Roma MCF party, a regional chief prosecution office spokesman said on Friday. The search follows the... [read complete entry]
January 15, 2010, 10:49 CET
Gov't extends crisis fund deadline
The government has extended the deadline for receiving bids for support from Hungary's crisis management fund until April 30, the government spokesman told MTI on Thursday. Prime Minister candidate of the Socialist Party Attila Mesterhazy asked Prime Minister Gordon Bajnai... [read complete entry]
January 15, 2010, 09:15 CET
Government Debt Management Center plans new bond issue
Hungary's Government Debt Management Centre (AKK) plans a new bond issue and has invited Citigroup and Deutsche Bank to organise a series of negotiations with bond-market investors beginning on January 18, 2010 in Europe and the United States, AKK said... [read complete entry]
January 14, 2010, 10:53 CET
Gov't to spend Ft 2 billion to create and preserve jobs in 2010
The government will spend HUF 2bn (EUR 7.49m) in Labour Market Fund resources on job creation and job preservation in 2010, Ministry of Social and Labour Affairs State Secretary Gabor Simon said. The government has earmarked HUF 1.5bn in support... [read complete entry]
January 13, 2010, 09:40 CET
FM says Hungary on track to meet budget deficit targets
Hungary is on course to meet its budget deficit target for 2009 based on European Union accounting rules, the finance ministry said on Tuesday. Hungary must meet the deficit target of 3.9 percent of gross domestic product (GDP), based on... [read complete entry]
January 11, 2010, 12:58 CET
PM says Hungary could adopt euro by 2014 with political consensus
Hungary needs a consensus between its major political forces on adopting the euro, possibly by 2014, Prime Minister Gordon Bajnai told public television on Sunday evening. In order to start following a benign path, like the ones seen in Ireland,... [read complete entry]