Socialists, Free Dems Set To Co-Operate

The Free Democrats had arrived with a four-point proposal package asking the cabinet to cut the budget deficit for this year from the planned 3.8% of GDP, to 3%, and freeze the necessary reserves. The liberals continue to reject the government’s tax plans and party chairman Gábor Fodor pressed for the introduction of a flat tax and the abolition of the separate corporate tax and the solidarity tax. He also opposes the introduction of the “Robin Hood” tax.

Socialist Party chairman Ferenc Gyurcsány told reporters after the meeting that “a joint understanding had more or less been made” on key political issues, adding that talks will continue at caucus and expert level until Parliament passes the budget for 2009.

He added that the Socialists will argue in favour of the Robin Hood tax until a vote is cast, and dismissed the Fidesz proposal to reduce VAT on block heating from 20% to 5%, “as it would provide the most support to the biggest consumers, without regarding their social position.”

Fodor said the Free Democrats will not return to a Gyurcsány-led cabinet, but are ready to co-operate on intelligent issues. Fodor wants to see the welfare system reformed to take the needy into account, while Gyurcsány would not change the pensions system but said the proposal on the budget ceiling is worth considering.

National council leader József Gulyás told Magyar Hírlap that no answer had been given on whether funds resulting from spending cuts will principally be allocated for tax cuts.

Fidesz chairman Viktor Orbán told reporters after meeting financial executives “it looks that the liberals are again moving from a cabinet of technocrats toward the coalition,” he said."

Source: Hungary Around the Clock.

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