ECONOMY IN CRITICAL CONDITION

The government wishes to improve the financial situation of Hungary by ’creative accounting’ after delaying VAT returns and budget restrictions.

János Veres, Minister of Finance yesterday announced the intention to change the simplified entrepreneurial taxation which has been operating successfully so far. Fidesz has condemned the change yesterday in an announcement. The government wants to facelift the budget by demanding VAT returns from next year’s motorway constructions this year though experts claim such transactions will not substitute the expected general structural reforms. The Hungarian currency is constantly weakening and according to Le Monde there is an expected 5,4 pc state budget deficit instead of last year’s 4,5 pc. The rate of economic growth in Hungary semms to be unpredictrable and the image of Hungary has been steadily worsening from the point of view of investors.

Translated by Péter Szentmihályi Szabó