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A policy proposal for a new economic direction in Hungary is being drafted

The new economic plan is expected to be ready for government consideration next month

A policy proposal for a completely new economic direction is being drafted with the involvement of the central bank and the chamber of industry and commerce (MKIK), it has been revealed.

According to Magyar Idők, the plan is expected to be ready for government consideration next month.

MKIK President László Parragh said levels of redistribution will change but fiscal prudence will be maintained. The efficiency of the state needs improvement, he added.

Reports state that the process of narrowing the wage gap will need to speed up, possibly by amending and expanding the six-year wage agreement signed in 2016, Parragh added.

State-of-the-art digital-based development strategies will help improve industrial production, and challenges in the labor market need to be addressed, he said.

Parragh said that in 2010 unemployment posed a risk to growth. It is now down to a shortage of skilled workers. In addition to higher wages, more emphasis needs to be placed on training and life-long learning, he added.