The new Hungarian government is firmly determined to make Hungary the 21st century financial services centre of Central Europe by the recently released, long-term and sound economic policy concept. To reach European competitiveness standards, we intend to create an environment with such taxation as well as legal and market regulatory background which, by stimulating financial investments, could turn Hungary into an attractive destination for foreign institutional investors and which could facilitate the long-term rise of domestic savings rate.
Report on the measures taken in response to Council recommendation of 7 July 2009 under Article 104(7) of the Treaty
The objective of the comprehensive pension reform currently under way in Hungary is to return to the two-pillar pension system, based on social solidarity on the one hand and voluntary contributions on the other, which is in place in eighteen EU Member States, from the current three-pillar system which is hopelessly threatening the budget balance, and is financially unviable in the short, medium or long run. Having accomplished this transformation, the government is committed to maintain and support voluntary private pension funds parallel to the state-run social security pension pillar.
From 1 January 2011, Hungary will have a flat rate personal income tax system with a 16 percent flat-rate personal income tax.
under the Europe 2020 Strategy
The main objectives of the New Széchenyi Plan starting on the 15th of January, 2011 are to improve the competitiveness of Hungary and to create one million new jobs over the next ten years by the help of seven break-out points. The economic development programme of the Hungarian government provides an adequate response to every challenge the country is facing, and it secures sustainable economic growth for the long term.
Reports on Government deficits and dept levels.
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:
As the minister of national economy emphasized on the occasion of the nomination of the Government Debt Management Agency's new Chief Executive Officer, a central objective of the government's financial policy they pay special attention to is regaining credibility.
As the Ministry for National Economy communicated yesterday, the talks due to be held this autumn would take place exclusively within the economic policy consultations as usual with all the member countries (Article IV consultations).