Experts of the Ministry for the National Economy have been on a three-day study trip to Tallinn where they examined the Estonian family policy, the flat tax rate system and the challenges of old age pension system. It is justified to examine Estonia in these fields because:

 The Hungarian and Estonian fertility rate was almost identical in the year of 2000, but since then Estonia has made significant headway against Hungary. The Estonian family support system focuses on the first 18 months after a child is born providing the parents with substantial aid, and after that these benefits are deeply cut.

 Estonia has been the first country in the world where the simple, transparent flat income tax rate system able to initiate an optimal, competitive business environment was introduced in 1994, and every tax rate was gradually cut from 2004 until the economic crisis.  

 As a response to the financial challenges created by the economic crisis, Estonia has cut back on public expenses by 10% of the GDP also rationalizing big redistribution systems which measures will have resulted this year in a budget deficit of about 2.5% of GDP. To reduce the budget deficit and to get fit for the introduction of the Euro, between July 1st 2009 and December 31st 2010 the Estonian government suspended the compulsory payment of pension fund contributions into the mandatory capital base pension pillar and they suspended transferring a part of social taxes to private pension funds.

 The key to the Estonian economic success lies in the uncomplicated, predictable and transparent economic policy, in the competitive business environment, in the low level of corruption, in the fast and simple government administration and state regulation (e-administration), in the low level of public debt, in a consistently balanced budget, in the trust of the public in political leadership as well as in the trust of the society in a better future.

You can find more details in the attached document.