WORLD BANK: CHAOS IN HUNGARY

The latest report of the World Bank also published on internet (web.worldbank.org) mostly criticizes Hungary. The analysis claims that Hungary has achieved the total deficit planned for this year and there will be necessary to make emergency measures.

The report says there is a chaos in fiscal policy, in the first half a year the deficit reached 3.1 pc of the GDP, i.e. 86 pc of the annual deficit target. The data show the deterioration of the labour market, the unemployment rate increases, and the increase of productivity necessitates more lay-offs in spite of restrictive measures. Among the new member states it is Hungary which employs the PPP construction most widely, in several cases without any consideration to the risks. The report claims Hungary was a net contributor to the EU budget in 2004 (in spite of the opposite claims of the Hungarian government) while the so-called programme of 100 steps implies reforms for which the necessary sources are lacking so there are only face-lifting changes expected.

P.Sz.Sz.