Awaiting a new action plan

The IMF and the European Commission equally recognised the actions taken by the Orbán Cabinet towards stabilising the budget. No new stand-by loan agreement has been concluded for the forthcoming years so far, but this does not jeopardise the financing of the budget. The Parliament will finish the process of adopting economic legislation by Thursday this week and further structural reforms are expected to be presented by the Prime Minister in the course of the summer, in a new action plan.

‘Hungary has returned to a positive economic growth path and now has one of the lowest budget deficits in the EU. I welcome the authorities’ commitment to the 2010 deficit target’, said Olli Rehn, Commissioner for Economic and Monetary Affairs after the meeting between the delegations of the European Commission, the International Monetary Fund and the representatives of the Hungarian cabinet.The Commission concluded that following the budgetary slippage in the first half of this year, a number of steps were taken to correct the situation. ‘However, the correction of the excessive deficit by next year will require tough decisions’ - added Mr. Rehn. The IMF also declared that ‘the fiscal deficit targets previously announced - 3.8 percent of GDP in 2010 and 3 percent of GDP in 2011 - remain an appropriate anchor for the necessary consolidation process’, adding that ‘at the same time, more remains to be done to cement these gains and put Hungary on a strong and sustainable growth path’.

National economy minister György Matolcsy declared after the closure of the negotiations on Saturday that the Cabinet would carry on with its policy of structural reforms. These will affect areas considered important by the negotiating partners (tax system, health, public transport, state-owned companies etc.).

National Development Minister Tamás Fellegi noted last week already that dramatic actions are being planned to sort out issues relating to the national railway company MÁV and the national airline company Malév, among others. The Parliament is expected to finish the process of adopting economic legislation, outlined in the action plan announced by Prime Minister Viktor Orbán in early June, by Thursday this week. The Prime Minister is expected to announce another economic action plan in the near future. This may provide some orientation concerning the 2011 budget which will have to be worked out by the Cabinet by 15 October.

The fact that no new stand-by loan agreement has been concluded with the international partners for the years 2011 and 2012 is, generally, not seen as a danger to the financing of the Hungarian general government system. Market sources have, for quite some time, been dominating the borrowing transactions. One sign of stability is that instead of the planned 50 billion forints (EUR 178 million) as much as 55 billion (EUR 195 million) was raised in the government bond issue last Thursday, at lower yields than in the preceding issue.

2010/29. week

Politics of reality - 2010./36.week
New era to come to Budapest - 2010./35. week
Act on dual citizenship entered into force - 2010/34. week
A determined EU presidency - 2010/33.week
New Head of State inaugurated - 2010. / 32. week
Offering a chance for success - 2010/31. week
First Two Months in Government - 2010/30. week
Awaiting a new action plan - 2010/29. week
Temporary MSZP Leadership - 2010/28. week
Laws for stabilisation and for businesses, 2010/27.week
Pál Schmitt to be President of the Republic, 2010/26. week
Words to be followed by actions - 2010/25. week
Viktor Orbán’s economic action plan - 2010/24. week
Urgent briefing - Hungarian PM announces economic action plan, 08. June 2010.
Extraordinary economic measures - 07. June 2010.
Trianon anniversary in Hungary, 2010/23.
Intensive Legislation Expected - 2010/22. week
State Reform and Fewer MPs - 2010/21. week
MSZP’s Ambiguous Relationship with Jobbik - 2010/20. week
Gyurcsány is Back - 2010/19. week
New Government Structure - 2010/18. week
What UK politics can learn from Hungary - Monocle, May 3, 2010
Fidesz Two-Thirds Accomplished - 2010/17. week
Before the Second Round - 2010/16. week
Fidesz Close to Two-Thirds Majority - 2010/15.week
Far-right party Jobbik makes breakthrough in Hungarian elections
Hungarian Right, Center and Far, Make Gains
During Countdown
Four Days Left - 2010/14. week
Bajnai’s Job Approval: 2.57/5
Splits in the Extreme Right - 2010/13. week
The Struggle Between MDF and LMP - 2010/12. week
Gyurcsány’s Comeback - 2010/11. week
The Hungarian Electoral System - 2010/10. week
The Bajnai Cabinet’s Performance - 2010/9. week
Mesterházy’s programme - 2010/8. week
Two diverging campaign strategies - 2010/7. week
Fidesz: Two-thirds Majority Possible
MSZP: From Gyurcsány to Mesterházy
Orbán’s 5 points - 2010/6. week
After the Property Tax - 2010/5. week
Non Parliamentary Parties’ Chances - 2010/4. week
MSZP and Pensioners - 2010/3. week
An Uncertain Equilibrium - 2010/2. week
Parties and Campaign Financing: for the Moment, it’s Only Comedy - Diplomacy&Trade, December 2009
The End of Bipartisan Party System - 2009/51. week
State Institutions Depleted - 2009/50. week
Hungary’s Budget at Dispute - 2009/49. week
Mesterházy to Challenge Orbán - 2009/48. week
Focus on public safety again - 2009/47. week
Fidesz-programme in the Making - 2009/46. week
A Four-Party Parliament in 2010? - 2009/45. week
In Eastern Bloc, Wary View of Democracy - The Wall Street Journal, November 3, 2009
Anti-Corruption - The Means to Political Survival - 2009/44. week
The Crisis of Hungary’s Left - 2009/43. week
The Chances of a Fidesz-MDF Coalition - 2009/42. week
New Civil Code Debated - 2009/41. week
Candidate for EU Commissioner Wanted - 2009/40. week
Health Care on Agenda - 2009/39. week
Awaiting a Fidesz-cabinet
Scandalous Salaries in State-Owned Companies - 2009/38. week
Unsuccessful Hungarian-Slovak Summit - 2009/37. week
Painful Budget - 2009/36. week
Pessimist Public, Retreating Extremists - 2009/35. week
Corruption on Agenda - 2009/34. week
The “Roma Issue” in Political Marketing - 2009/33. week
MSZP Starts Campaign Preparations - 2009/32. week
Personnel Reshuffles at Top State Companies - 2009/31. week
100 Days of the Cabinet - 2009/30. week
Szili, a Possible Socialist Reformer - 2009/29. week
In SZDSZ, New Chairman, Slim Chances - 2009/28. week
Guard Goes, Problems Remain - 2009/27. week
MDF, a Success from Outside and a Crisis Within - 2009/26. week
Generational Struggle Among Socialists - 2009/25. week
Hungarian Liberals on the Brink of Disappearing - 2009/24. week
Jobbik – The Rise of a ‘Multi-Cultural’ Extremism, 11 June 2009
Voters Punish Ruling Parties In Hungarian Elections - The Wall Street Journal, June 9, 2009
Conservatives Win as the Left Collapses in Hungary - 2009/23. week
Fidesz Against Jobbik - 2009/22. week
What will Fidesz Do in Power? - 2009/21. week
Opposition Presents Programme - 2009/20. week
Liberals and Radicals Strengthen One Another - 2009/19. week
European Campaign Builds on Domestic Issues - 2009/18. week
Government plans lacks public majority support - 2009/17. week
The Failed Idea of Technocracy - 2009/16. week
A Technocratic Government? - 2009/15. week
Prime Minister for a Year - 2009/14. week
Hungary’s Socialists nominate premier - The Wall Street Journal, 31 March, 2009
Leadership Crisis in Hungary - 2009/13. week
PM to Resign, Toward a New Left-wing Cooperation - 2009/12. week
Is “Olive Tree” Possible in Hungary? - 2009/11. week
Fidesz Rhetoric Legitimised by the Crisis - 2009/10. week
Small Parties Against Each Other - 2009/9. week
Govoernment Policies Under Heavy Fire - 2009/8. week
Public Security on Top of the Agenda - 2009/7. week
Minorioty Question Causes Political Tensions - 2009/6. week
Chaos in Economic Policy - 2009/5. week
EP Election Campaign Kicks Off - 2009/4. week
Deteriorating crisis, debates old and new - 2009/3. week
Hungarian Extreme Right Develops its Russian Relations - 2009/2. week