Hungary has arrived at a turning point

The Hungarian economy has been based on new fundamentals in the past one and a half years. To this end, we had to cancel each old-type forms of cooperation which were obstacles to our economic independence. This we have managed to carry out and achieved that the Hungarian economy receives market financing and it does not depend on the goodwill of others. Thus, the age of renewal has ended and the age of growth has begun; for this we need to utilize every instrument at our disposal.

In the past one and a half years we have renewed Hungary’s economy. During the period of renewal we focused on gaining economic freedom and rearranging Hungary according to national interests. To this end, we had to keep a distance from every kind of influence, thus we had to cancel such old-type forms of cooperation which had been obstacles to our economic independence. As a consequence, we managed to achieve economic independence and market financing, by which we have increased the number of opportunities at our disposal.

The results of these actions are obvious by now.

Taxes on labour have decreased, the savings of pensioners have escaped the attacks of speculators, as a phenomenon unique in Europe government debt has decreased and the budget has been stabilized.

Since Hungary joined the EU in 2004, the country can keep the budget deficit target for next year below 3 percent for the very first time. Besides Hungary, there will only be six countries among the EU 27 which can deliver the same result.

Government debt, which was almost 82 percent of GDP in 2010, has been reduced to 74 percent calculated on the basis of 2010 exchange rates, and GDP grew by 1.4 percent relative to the corresponding period in 2010.
Consequently, in the past one and a half years we have managed to fully enforce national interests without having to adapt to others’. Thus, we can build our new relationships on new fundamentals enforcing our national interests.
We have arrived at a turning point. From now on we need to focus on boosting growth. And to this end, we have to utilize every instrument at our disposal.
In order to spur growth we first and foremost have to protect our independence. It means that Hungary should be financed by markets, but it is hindered by the protracted crisis of the Euro-zone.

Therefore, a new type of cooperation with the IMF, adapted to our economy which has been transformed on the basis of our national interests, could be a potent instrument which would increase our financial and economic independence instead of hindering it like the old one. This new type of cooperation, unlike the old one, would not increase government debt as we do not take out a credit, but we will make an insurance contract in order to increase the safety of investors in Hungary.

In this way we will have the opportunity to kickstart economic growth according to the original schedule.

Within the regular annual economic policy consultations with the IMF, we have launched negotiations about this new type of cooperation.