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Oct 30, 2017

Hungary's economy minister: The proven "Hungarian model" could be applied to other nations to encourage economic growth

Central European countries in the European Union can offer an example to slower-growing member states on ways to step up economic growth while creating jobs and reducing public debt

Hungary's economy minister has highlighted how the "Hungarian model" has pulled Hungary out of a recession, and could be applied to other nations to improve their economic standing.

Mihály Varga, minister for National Economy, said Central European countries in the European Union can offer an example to slower-growing member states on ways to step up economic growth while creating jobs and reducing public debt.

During the Tatra Summit held in Strbske pleso (Csorbató), in northern Slovakia, the minister said the transformation of the tax system, the policy of reducing taxes and the system of family allowances coupled with a home construction scheme have all contributed to wage growth in Hungary without damaging competitiveness.

The minister told MTI that Hungary is currently in a phase in which it can focus on competitiveness. Hungary aims to be among the most competitive countries of Europe, and its government wants to achieve this by investing in education, transforming the training system, offering targeted support for digitalisation, research and development.

Representatives of Central European countries attending the summit were in agreement that EU resources should be distributed more proportionately, Minister Varga said. 

The minister said a new fund should be set up for developing investments in countries that joined in 2004 and 2007. He added that more help is needed for countries that joined the EU more recently to close the gap with their wealthier peers.