Hungary ranks among the poorest Member States of the European Union today. At the same time, the Hungarian economy has a lot of potential for growth. Our goal is to ensure that by pursuing sound economic policies and stimulating the Hungarian economy, our country can join the ranks of the wealthiest EU Member States by 2030.
During the past decade and a half, the Hungarian economy has performed roughly 30% below the level its potential would have made possible. Unless we change course, the joint impact of the deterioration in the international environment, the decline of the workingage population, and technological progress will lead to Hungary falling even further behind instead of catching up to the more successful countries.
Today, the Hungarian state is large and very active, but it performs poorly. The structure of our budget impedes economic growth, the tax burdens on wages and salaries are high in international comparison, while the tax system overall is not well-targeted and unstable. Corruption effectively acts as an additional tax on the economy, while public debt and inflation give rise to excessive risk premiums, thereby further slowing economic growth. State subsidies, in the meanwhile, introduce warped incentives into the market. All of these combine to reduce the flexibility of the Hungarian economy and compromise its ability to withstand crises.
You can view the full report of policy proposals in the following link: