PM Orbán promises structural reforms seek to prevent indebtedness

"We must fight indebtedness in all areas of life from health to transportation. If we succeed, our work will at last yield prosperity. Each one of us will have a better life with improved perspectives," Orbán wrote.

Concerning the present situation, the prime minister said that "those that have jobs work more and more, but most of their earnings are spent on debt service: on state debt, on the debt of companies or on personal or family loans they have taken out."

Orban noted that two-thirds of the personal income tax collected nationwide was being used for debt service. "A large portion of those funds is paid to foreign countries. We are dependent on other states and we are at their mercy. The moment has now come to declare war on indebtedness which has captured our life like a huge octopus, dragging us down and leaving no chance to make a living out of a job," he said.

Hungary has the strength to "break free from the trap of the past several decades" and it must use the opportunity "given once in the lifetime of a whole generation."

The measures of the government's Szell Kalman Plan were unveiled by Deputy Prime Minister Tibor Navracsics and National Economy Minister György Matolcsy on Tuesday. The reforms are designed to reduce state debt from the current 80 percent of GDP to 65-70 percent. Navracsics said that measures will address drug financing, costs of public administration, public procurement, public work schemes, disability pensions and early retirement. The program also includes a plan to settle the debt of and restructure state railway company MÁV.

The reform programme is named after Kálmán Széll, Hungary's renowned finance minister and head of government in the late 19th century.