On Kossuth public radio station today, Prime Minister Viktor Orbán claimed that the European Commission's forecast for Hungary issued last week shows that the country can thrive even without an IMF deal, but it is still committed to reaching an agreement with the financial institution and the European Union.
He also announced in the interview that the new regulations of the agricultural sector will be defined by a cardinal act, which requires a two-thirds majority to amend.
With regard to the European Commission’s latest report, which forecasts a 2.9 percent budget deficit and a 0.3 percent growth for Hungary in 2013, the Prime Minister stated that Hungary has one of the most fiscally stable economies in Europe. The government has waited for its efforts and burden-sharing policy to be recognised, he added. Despite international pressure concerning crisis taxes, the government insists on its policy of the fair distribution of burdens and it will apply every means to prevent banks from passing the financial transactions tax on to their clients. Even though the report suggests economic stability for Hungary, Viktor Orbán still regards reaching an IMF agreement as desirable and thinks that a deal on a financial package with international lenders is close.
The Prime Minister also announced that new legislation on Hungary's agricultural sector will be regulated in a cardinal act requiring a two-thirds majority to change, adding that the decision was made following a recommendation by the National Association of Hungarian Farmers’ Societies (MAGOSZ). The Prime Minister confirmed that the Land Act will be in line with European regulations and noted that the new bill seeks to cap the size of land holdings, and that farmland would go to the farmers who actually cultivate it. He also concluded that no subsequent changes will allow for illegal land purchase agreements.
The new Act on Electoral Procedures was also discussed in the interview. The Prime Minister said that amending the present legislation was necessary due to a number of significant changes, such as the downsized parliament and electoral rights having been granted to ethnic Hungarians. He rejected allegations that the amendment would favour the governing Fidesz party, since it gained a two-thirds majority under present regulations.
On the subject of the government's taking over a large part of municipal debt, Viktor Orbán said the scheme was possible owing to the Hungarian economy's excellent performance in 2012, as it was able to set aside HUF 100 billion (EUR 354 million) to repay in full the debt of towns with fewer than 5,000 inhabitants before the end of the year. He added that the government will come to an agreement with larger municipalities by the middle of 2013.
(Prime Minister’s Office)
