"The government intends to open social debate on the subject of increasing retirement age over a ten-year period, starting from 2018-2020, to 65 years from 62 years, Prime Minister Ferenc Gyurcsány told commerical television TV2 late on Tuesday.The PM also noted that a minority Socialist government, the currently most likely outcome of the rift between MSZP and their junior ally, the Free Democrats (SZDSZ) could be a viable solution up until the 2010 elections.
“There is a realistic chance for a minority government to remain in place even until the next general elections," the PM said, adding that “from then on we'll see".
During this period, he said, the “velvet reforms" must continue.
Among such “velvet reform" measures Gyurcsány mentioned a plan for state support to every student only in the first year of higher education. From the second year, he said, only the best 50,000-60,000 (about half of those enrolled) would receive state support and the rest would need to pay a fee.
The PM would also put up for debate the cabinet's idea to hand out the total amount of maternity leave payments over a two-year rather than a three-year period so that mothers can return to their jobs earlier. This, he said, would increase labour market activity, which is very low in Hungary in international comparison."
Source: Portfolio Online Financial Journal
10.04.2008