Significant pay rises may be expected in health care and education during the period between 2018-2022, without which Hungary cannot draw level with advanced western countries, János Lázár, the Minister heading the Prime Minister’s Office stressed at the event entitled Business Summit of the Confederation of Hungarian Employers and Industrialists.
He remarked: “there will be no genuine change in health care if we are unable to raise salaries”. He also confirmed his opinion that there are still too many people working in state administration, and therefore believes that it would be a change for the better if staff numbers in state administration could be reduced.
He indicated that the Government is planning very significant digital and transport infrastructure developments. E-governance must be extended, and the Government is beginning the acceleration of digitisation “in its own backyard”, he said. According to plans, the Cabinet would spend some HUF 200 billion on this between 2018 and 2020, he added.
Mr. Lázár further informed his audience that the Cabinet decided on the large-scale modernisation and development of the road and railway networks “because it is important to tune Europe, and primarily our region, to Budapest”. In the next few years the Cabinet may spend HUF 2,500 billion on the upgrading and extension of the road network, and another HUF 1,000 billion on the modernisation and improvement of the railway network, he highlighted.
At the beginning of his lecture, on behalf of Prime Minister Viktor Orbán, Mr. Lázár thanked the member companies of the Confederation – Hungarian industrialists – for cooperating with the Cabinet and supporting the Government’s economic policy objectives, adding that the members of the Confederation have played an active role in the major economic results achieved in recent years. “Those who are able to take care of themselves are the allies of the Government, while those who are even able to help others are the best allies of the Government”, he said.
He listed the most significant economic results achieved in the past few years which, in his words, would not have been possible without the support and cooperation of the employer interest representations, and also highlighted the role of the Ministers of National Economy, György Matolcsy and Mihály Varga, as well as the fact that the policy of the central bank, too, supported the Government’s stringent fiscal policy.
He reiterated: in 2010 the sovereign debt to GDP reached 83 per cent, while this figure has now fallen to around 73 per cent. He indicated: only 3 to 4 countries have been able to reduce their sovereign debts in the European Union, but in the years to come we must further reduce the percentage of the sovereign debt to the gross domestic product because it is still high by regional standards. The Government would like to see the sovereign debt to GDP fall to below 70 per cent by 2019-2020, Mr Lázár indicated.
Péter Futó, President of the Confederation of Hungarian Employers and Industrialists drew attention to the fact that technological development is moving on unstoppably, and it is impossible to predict its course. He mentioned as an example the development of oil prices in light of the fact that a few years ago experts did not even rule out prices ranging around 200 dollars; however, due to technological development and innovation, oil prices have not even reached the levels of a few years ago.
He further made mention of the ever more intensive spread of robotisation, and remarked that according to a study of Oxford University within 25 years almost one half of today’s jobs will be performed by robots globally. The role of lifelong learning and adaptability will increase also on the level of the individual which will require as a bare minimum the ongoing development of IT skills, the command of the English language and mathematical skills right from childhood, Mr. Futó pointed out.