The reforms of the Hungarian government are in harmony with the recommendations of the OECD in the area of structural reforms, said Angel Gurría, Secretary-General for the organisation, in a brief interview with kormany.hu.
- The document entitled ‘Going for Growth 2011’ highlights the structural reforms which are needed to attain long-term growth. Why does the OECD recommend restructuring measures of this nature?
- ‘There have been structural reforms in the past, but in the current post-crisis situation it has become clear that this is our only option. Fiscal and monetary policies employed up to now have used up their available resources, and the amount of debt amassed by states has grown too large. In such circumstances we cannot do anything but pursue policies of structural transformation. (...) The development of the education and healthcare systems, the encouragement of investment and competition, and increasing the flexibility of labour markets are all necessary for the establishment of sustainable growth after the crisis.
‘These are basic guiding principles therefore, but there is a small problem with them: they take time. Politicians, on the other hand, are usually impatient, and they like to see spectacular results in the short term. However, we now have to face up to the fact that we have used up our material resources.’
- Yesterday Mr Matolcsy (Minister of National Economy) stated that local solutions must be found for global problems. 2011 will be the first year in which Hungary meets the Maastricht criteria related to the budget deficit. Alongside financial reforms, the Government announced a programme of structural reforms, the Széll Kálmán Plan, and a plan for reform of public administration. In your opinion is this the right route to lead us out of the crisis? Do you agree with the Government’s measures?
- ‘In essence we support the Széll Kálmán Plan. We think that the programme is the right approach to handling fiscal expenditure and making the labour market flexible. A further important goal of the Hungarian reform plan is to make the situation for companies easier, and to reduce the tax burden on enterprises and earnings. I see these steps as positive initiatives. Their essence is that it should cost far less to create new jobs. With regard to education, it seems that the Government is trying to develop an education system which will meet the needs of the market far better and more effectively. I think that the changes instigated by the Government are on the right path, as these reforms are highly compatible with the proposals contained in the OECD document ‘Going for Growth’. The plans are very good, and we await their implementation with interest.’
- What do you think are the most important tasks for the country with regard to structural reforms?
- ‘The most important are sustainable growth, job creation (especially for young people) and the encouragement of competition. State debt must be reduced, and the budget deficit must be successively reduced every year. But I would emphasise that sustainable growth is the most important, because that will help to constrain the deficit. This is what is contained in our recommendations.’
(Viktória Siró, Zsófia Joó - kormany.hu)
