Hungary Hopeless Unless Government Resigns
by Hungary was once the economic forerunner in its region, but is now lagging behind its peers. Unless the current government cabinet resigns, the country may not see the light at the end of the tunnel before 2013, according to internationally acclaimed economist and university professor Laszlo Csaba.
“If someone had 49 programmes and all of them had a two-week lifespan only, then he lacks creditability,” said Csaba, who also happens to be professor in Economic Sciences at the Budapest-based Central European University, founded by self-made millionaire George Soros. It was a painful pill to swallow for Hungary when once underdog neighbouring Slovakia, exceeding all expectations, passed Hungary’s economy in 2006 and has never turned back since. The same goes for neighbouring Romania, who are fast closing up on Hungary. STATISTICS
In 2008 Hungary’s population of 10.4 million were having to make ends meet with an average net wage of HUF 115,000 (GBP1=HUF354.32). In one year the price of food in Hungary increased by 14% year-on-year (June 2007/June 2008). A kilo bread cost as much as HUF400, a litre milk cost nearly HUF300, a kilo pork HUF1,200 while a litre petrol fetched HUF320. The average rental apartment cost HUF60,000/month, while a home purchase had an asking price of HUF15 million. At the same time the official minimum wage was HUF69,000/month.
The nation supports 3 million pensioners, of which many live off a meagre monthly pension of HUF29,000, despite the fact the official registers show an average monthly HUF74,000. Only 100,000 pensioners can say they receive more than HUF150,000/month. Of the 10.4 million decreasing population 3.1 million people lived on the poverty line in 2008. Unemployment rose to a dramatic national average of 8,1% (340, 000 people) Hungary spends an average annual HUF1,200 billion on debt repayments, many of which the population have no idea how and why they occurred. This implies a whopping HUF25,000/month per capita tax payer. The tax man takes 70% off every HUF100 earned by each Hungarian as compared to neighbouring Austria, where citizens are compelled to pay maximum only 43% of all earnings in the form of taxes. Hungary’s international competitiveness slipped to 47th position in 2008 as compared to it 26th place in 2000.(Source: Csaba Csendes’s publication entitled Credit.
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