The second half of this year will be about financial and economic stabilization and curbing inflation, said György Matolcsy, Minister of National Economy, at an event organised by the club called Hungarians on the Market.

According to the minister, we should not have false illusions, for the new government cannot bring about a complete economic overturn in a matter of two or three weeks, even though it has a two-thirds majority in parliament. György Matolcsy warned that the "Hungarian patient" was far from healthy. At the moment, all of the country's macro-economic indicators were deteriorating. That is why the second Orbán government's aim for this year is to stop economic downfall.

During the second half of this year, the government will have to reduce the budget deficit from the present level of around five percent to 3.8 percent by the end of the year. According to György Matolcsy, this can only happen if - apart from a serious economic program - a bank tax is also introduced. The minister of national economy confirmed that regarding the 200-billion-Forint bank tax, the government could agree to no concessions whatsoever.

In his view, the economic-political change has finally started with the first 29-point action plan, as a result of which - following the successful stabilization this year - the period of the economy's structural transformation may begin around 2011-2012, and growth can finally get under way. The main elements of this are flat rate tax, 16% family tax and the reduction of company tax.

According to the minister, reducing tax burdens and tax bureacracy will have a stimulating effect on the economy, and these will be complemented from 2011 by the second Széchenyi Plan, about which a public debate will be launched in the summer. Mr. Matolcsy also called our attention to the fact that in the new economic program, a different kind of foreign economy, innovation and energy policy, transport and touristic strategy will be needed in order for the economy to recover. The Orbán government will have to work with the shadows of the 2006 and 2009 austerity measures looming above them for the next 5-10 years, he said.

Tamás Fellegi, Minister of National Development, viewed the strengthening of the SME sector as one of the key elements of economic growth. That is why European Union funds should be directed towards them. This is necessary, for at the moment, SME's only receive 10 percent of EU funds, while 65 percent goes to state administration organisations and NGO's, and 22 percent goes to large companies.

The government intends to increase the proportion of SMEs' share of EU funds to 40-50 percent. The basic element of strategic change regarding these funds will be simplification and regrouping. Within this framework, some 700 large projects that have already been granted funding will be examined, and if it is still possible, the unnecessary prestige-investments will be suspended.

In the case of calls for tender, the minister promised the reduction of red tape, significantly shorter payment deadlines, as well as simplified tender documents. The first step in this direction, according to Tamás Fellegi, is the simplification and merging of organisations, which they will start in the summer.

In the area of public procurements, the minister set out similar aims: he promised a simplification of the rules and the transformation of the whole system, in a direction that complies with EU regulations but also strengthens national patriotism. For this reason, the ministry will initiate amendments already in the summer, and the new public procurement act may be ready by autumn. Also, in order to make public procurements more transparent and to fight against corruption, they plan to drastically reduce the number of closed public procurements.

Sándor Fazekas, Minister of Rural Development, who also spoke at the event, said the most important task was to make the countryside competitive once again, and mentioned the examples of Austria and France, where people find the countryside more attractive than the bustling world of large cities. What is needed to revivify rural life, according to the minister, is a program that supports young farmers so they don't migrate elsewhere. Also, local processing and sales must be freed from the burdens of bureaucracy.

He underlined the importance of creating the law on unique Hungarian products (Hungarikum), which would help Hungarian products to reach the market. He also called his audience's attention to the fact that in two weeks' time, the law on the secondary food-examining system would be ready, which would prevent Hungary from being the "food- rubbish-dump" of the European Union. In his view, this regulation will be able to increase the market of Hungarian foods, for they will not have to compete with low-priced, bad quality imports.

The minister urged the establishment of an up-to-date, state land registration system, and the simplification of the agricultural tender system. He said the amount of legislation connected to the ministry should be halved: with this rationalization, the operation of the system can be speeded up.

The ministers who took part in this event were each presented with a shopping-trolley full of products by the founding members of the club Hungarians on the Market, among others Abo Mill, Forest Paper, Ilcsi Cosmetics, Szamos and Univer. With this gesture, the founders demonstrated how Hungarian small and medium-sized companies were able to produce high quality products in so many different areas. The ministers offered the products to the flood victims, and they were sent on to the Red Cross in the afternoon.