Mihály Varga has explained his views on Hungarian economic policy targets at hearings in the Parliament’s education and employment committees taking place yesterday and continuing today. The hearings took place prior to the Minister’s official appointment at the helm of the National Economy Ministry in a new post merging with his earlier position as chief negotiator with the IMF. The committees endorsed Varga’s nomination to replace György Matolcsy, who will be head of the central bank.
Investments in the manufacturing industry, which constitute one-third of total investments in the national economy, increased by 5.3 percent in the period October-December 2012 compared to one year ago. Investments, however, decreased with regard to the entire national economy: according to the latest flash report of the Hungarian Central Statistical Office (KSH), in Q4 2012 the volume of investments was down by 7.9 percent in comparison to the corresponding period of 2011.
Negotiations aimed at solving the problem of those with foreign currency loans have commenced and will continue next week, Financial Affairs Commissioner György Doubravszky said at a press conference in Budapest.
The First Job Guarantee Programme to assist career-starters will be re-launched as of 1 March 2013 with resources totalling HUF 5bn, which provides support for at least 7200 young people, Minister of State for Employment Sándor Czomba said at a press conference in Budapest. Skilled and unskilled young people under the age of 25 can sign up to the Programme at employment centres, which will also help them find an employer.
According to the latest data from the Hungarian Central Statistical Office (KSH), employment growth is continuing unabated. In the period November 2012-January 2013, 39 thousand more people were employed than one year ago. Thus, the number of people in employment in the 15-74 year age group increased from 3 million 816 thousand to 3 million 855 thousand. This was the 30th consecutive month in which the number of people in employment was higher compared to the corresponding period of the previous year. Employment indicators show signs of improvement with regard to both sexes and every age group.
According to currently available Eurostat data, retail turnover decreased in 13 EU countries in December, while growth was registered in nine of them.
According to its Winter Forecast published earlier today, the European Commission expects that fiscal deficit will be higher than anticipated by the Hungarian Government. Contrary to Brussels’ expectations, however, Hungary is certain of achieving a fiscal deficit of well below 3 percent.
In December 2012, gross average wages in the private sector increased by 8.3 percent, whereas net wages excluding family tax allowances were up by 6.2 percent, beating inflation, in comparison to the corresponding period of the previous year – the Hungarian Central Statistical Office reported earlier this morning.
The Hungarian-Flemish Joint Commission held its scheduled meeting on 21 January 2013 in Brussels. The Hungarian Co-Chairman of the Joint Commission, Minister of State for Employment Sándor Czomba, signed an agreement with his Flemish partner, Secretary-General of the Flemish Foreign Ministry Koen Verlaeckt on the work agenda for the upcoming period.
The Government assures Hungarians those rights that citizens of other EU countries are also entitled to. The European Commission disputes the regulation providing tax-free status for distilling home-made pálinka; in their view the exemption is in breach of EU regulations. In the opinion of the Government, however, the relevant Hungarian legislation is fully in accordance with EU legal requirements.