New Matolcsy Package to come

According to the new Matolcsy Package, transaction tax will increase and cafeteria rules will be strenghtened

The EU did not found the 400 billion HUF package announced in early October enough, so the excessive deficit procedure would continue. The excessive deficit procedure started against Hungary in 2004. The government does not agree with Brussels’ assessment, but decided over another 367 billion package, in order to maintain EU subsidies.

According to analysts, the about 764 billion HUF constraint would be only 500-600 billion HUF. In addition, in the second-Matolcsy pack there are  too many unortodox items and great uncertainty as well. But with the package it seems that Brussels’ dictates will  be completed as required and deficit can be below 3 percent.

Matolcsy announced 7 steps to increase revenues. The government estimates, that these steps will improve the balance by 367 billion HUF. (Index)