With headlines about bankruptcy now fading into the archives of news sites and blogs, Hungary has rolled out its new plan for economic growth and fiscal austerity. A flat income tax rate is one initiative, along with lower tax rates for more companies. We found this bit interesting as well.
Fidesz also said it would curb public spending: subsidising of political parties will be lowered by 15 percent this year. Civil servants will have to swallow a salary cut, and ministries will have to slash their expenses. The number of directors in public companies will be reduced from 319 to 60, while the number of supervisory board members will go down from 636 to 450.
Hungary continues to avoid the incompetent label that’s been stuck on Greece, and doesn’t look nearly as hopeless as the slow train wreck that is the Spanish economy. But the new government will need to put some numbers on the board, in a hurry, to avoid trouble.