Reforms for Stability and Sustainable Growth: an Oecd Perspective on Hungary

EU accession in 2004 has confirmed Hungary's successful transformation from a centrally planned economy into a functioning market economy operating within the framework of a multi-party democracy. However, the country's output per capita is still well below the EU average, and public expenditures exceed revenues by a large margin. This report looks at ongoing efforts to restore fiscal balance and promote sustainable growth to accelerate the convergence process. Drawing on the experience of OECD member countries it proposes structural reforms to achieve these objectives, covering the following topics: fiscal policy, health care reform, pension reform, employment and social policies, education reform, small and medium enterprise promotion, innovation, energy policy and the environment, public administration reform, and e-government.