The Hungarian model has been proven to be effective, Minister for National Economy Mihály Varga said at the conference organized by business daily Világgazdaság in Budapest.
As the Minister pointed out, Hungary’s economic growth in 2014 was significantly higher than the EU average, and it also exceeded the pace of expansion in the region.
“Those who want to achieve something look for a method and those who do not, look for a pretext,” he said. The Government had looked for a method and then cut taxes on labour. VAT revenues increased by 8 percent, while those from corporate tax and personal income tax are higher by 10 percent and 6 percent, respectively, he added.
Speaking about the phasing out of forex loans he remarked that “it is not the Hungarian Government that shall examine the Polish or Croatian scheme, but the other way round.”
With regard to the economic outlook of 2015 Mihály Varga stated that Hungary is also expected to benefit from the quantitative easing scheme of the European Central Bank and low crude oil prices are aiding Hungary as an importer. Among external risks, he singled out the Ukrainian conflict and the potential shockwaves resulting from the forthcoming parliamentary elections in Greece.
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He mentioned the stimulating of lending from the Government to-do list. The Minister emphasised that the state is planning no more bank acquisitions, however, he added, this is not a closed market. He stressed that the Government does not intend to keep commercial banks as state property in the long term.
(Ministry for National Economy)
