The economy's private sphere operates tolerably, but not the public sector - said György Mosonyi, President of the Joint Venture Association (JVSZ) at the Association's General Assembly recently. The JVSZ Presidium - he added - has decided to discontinue the operation of a relevant committee, because it has never received any response to its numerous propositions concerning the public service reform from the Government. For a couple of years has the JVSZ overwhelmed the Government with initiatives regarding the reform, and under its slogan: "there is no competitive economy without a competitive public service " they insisted on the introduction of performance assessment upon the sample of Western Europe, in the public service. György Mosonyi said to Világgazdaság, that in spite of abolishing the committee, the problem as such is to be communicated by JVSZ also in future.
The JVSZ President told the Finance Minister: unsustainable state spending and the very high redistribution rate deteriorate competitiveness and set a brake on economic growth, as well as the country's cohesion within the EU. Profound reforms in public service and in the national redistribution systems are indispensable, says Mosonyi.
The answers of János Veres: many of the reform initiatives fail on the lack of political consensus. The 100 Steps program envisages a number of measures aiming at the reforms. Soon the ideas concerning the tax systems will be presented with highlights, of which he mentioned three: business tax, ÁFA and personal income tax. Possible alternatives: reduction of the business tax rate from 2 to 1 %, in exchange the company tax rate would go up by 5 percentage points. The top ÁFA rate will certainly be reduced. Referring to the regional tax competition, he would not exclude a single rate either. The Finance Minister promised the actors of the economy present, that the anticipated politico-professional coordination talks follow soon.