Further measures are necessary to make the convergence programme really credible

Policy Agenda’s analysis last week concluded that the fundamental condition to achieve an agreement with the IMF is a credible convergence programme, which prognosticates a 500 billion forint adjustment in the 2013 budget. The convergence programme submitted by the government this week surpasses the analysts` expectations since it presents a 155 billion forint  balance correction in the budget for 2012 and another 567-665 billion forint correction for 2013. This week we are analyzing the problems concerning the realization of the programme and also the effects it will possibly make on the economy.