"On Tuesday or Wednesday, the Government will send the IMF and the EU an alternative proposal in connection with loan negotiations in line with the economic policies pursued over the past two years", chief negotiator Mihály Varga said on Monday. In order to have the opportunity to make changes to the budget if necessary, the Government has requested the postponement of the vote on the 2013 budget in Parliament, which was supported by ruling party Fidesz.

After attending a meeting with Fidesz officials, Minister Varga told journalists that elaboration of the alternative proposal is in its final phase and will be sent in written form early this week. "We want this letter to indicate that the Hungarian Government is ready to continue talks", Minister Varga added. He stated that this could speed up the process, as resuming the talks will be up to the IMF and the EU.

Regarding the alternative proposal, Minister Varga revealed only that it does not include any cuts in pensions and wages or a new property tax. Ha said that the Government is determined to keep the budget deficit below 3% of GDP, even after the implementation of the job protection action plan. The Hungarian proposal takes into consideration the IMF’s recommendations on ways to sustain macro-economic and financial stability as well as ways to boost growth. Furthermore, the Government and the international organisations share a similar assessment of projections on risks posed by the deterioration of European economic growth.

(Prime Minister’s Office)