September 7th, 2009

Local government unions break off budget talks with government

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Hungary’s seven local government interest protection alliances broke off negotiations with the government on Friday, insisting that specific numbers rather than principles should be on the agenda just one week before the draft budget is submitted to Parliament.

The alliances said the government keeps repeating the Ft 120 billion cuts, but have not made a statement on its real content. They underlined that they would only meet the government for “substantive negotiations”.

Government spokesman Domokos Szollár said the government has not yet taken a final position, as it has yet to approve the draft budget. He stressed that GDP is expected to drop by 7.5%, while the Ft 120 billion deduction represents only 4.9%.

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