Reform Alliance Dissolves Itself

“Basically, all fields highlighted in the program of the Reform Alliance can be found in the then formulating crisis management plan of the government of Gordon Bajnai. However, this is not about how wise the Reform Alliance is, most experts have long been saying these reforms should be done and not just talked about.”

Early April this year, the Reform Alliance of prestigious people representing the economic sphere and the Academy of Sciences, announced to dissolve itself – as their communiqué said – “after completing its mission by preparing and putting forward to decision-makers and the public the package of measures that it deemed suitable for creating the conditions for crisis management lay the foundations of a mid-term program for economic development.” Construction entrepreneur Dr Peter Futo (pictured right), one of the founders of the Reform Alliance considers their activity successful. He told Diplomacy and Trade that “basically, all fields highlighted in the program of the Reform Alliance can be found in the then formulating crisis management plan of the government of Gordon Bajnai. However, this is not about how wise the Reform Alliance is, most experts have long been saying these reforms should be done and not just talked about,” Futo stressed, adding that “the main directions laid down by the Reform Alliance regarding tax policy that the emphasis should be shifted from taxing revenues to taxing consumption, appear in the new government program.” Peter Futo, who is also the president of the Confederation of Hungarian Employers and Industrialists (MGYOSZ), finds it important to note that the MGYOSZ, as a member of the Reform Alliance, called for reduced VAT, 15%, on basic commodities like certain food items, heating, and so on, “so that the effect of the planned austerity measures would be alleviated for the poorer layers of society. Tourism, as a key industry in Hungary, was also proposed to enjoy this reduction.” “Basically, the situation is that we are in debt, up to 70% of the GDP, which means we have consumed ‘some of the bread of our children and grandchildren’ in advance. It is a huge responsibility! Now, we should consume less than we produce to decrease the future burden on our offspring. We have to show – and the experts of the Bajnai government will show, I’m sure – to people abroad that we can keep the deficit target and start the necessary structural changes.” As for the property tax that stirs lots of emotions among Hungarians, the Reform Alliance had in mind a 1% rate. At the same time, MGYOSZ proposed that private property should be differentiated from business property and now the rganization would like to achieve what is practice in many other countries that only those business areas should be taxed that are actually let out and generate income. “In my view, the biggest merit of the Reform Alliance is that it managed to bring together a number of prestigious people, ncluding the current president of the Academy of Sciences and two of his predecessors, who wished to present an objective view, without any political affiliation. People from the different sides of the political spectrum accepted that all the others in this alliance also had an honest approach – something not seen very often in Hungarian politics nowadays. The Reform Alliance has made politicians realize what is that we all have to do in this situation,” Peter Futo concluded.