I was in Budapest recently on a business visit . I landed at 6:30 confident that I would be in time for my workshop in city center supposed to start at 8:30 in the morning. Only if I knew what was in store for me.
There was a strike called by the union members of public transport and the whole public infrastructure was down. Some of the roads were blocked or closed including the main road to airport. The taxi driver used all all his knowledge of Budapest and took me through the narrow country roads to reach my office at 9:30 a full 3-hour journey which normally takes 30 min.
In the evening sitting in a fine restaurant called the "the spoon" on the banks of Danube I chatted with my Hungarian colleagues about Hungarian economy and Budapest. Every one agreed that joining Euro area is at least 3-4 years away. The austerity measures the government is trying to introduce to bring the budget deficit below 4% of GDP is not going down well with the public. Inflation was 7.8% in 2007 and expected to be curtailed only by end of 2008 as spending cuts wane. Hungarians have the heaviest tax burden in the regions. Employers pay 30% social security on top of taxes paid by employees. High tax regime and changing tax laws haven't helped local businesses.
The views from the restaurant were spectacular and Budapest seemed beautiful in the night. The government and people have a tough task ahead to turn around this beautiful city.
In the evening sitting in a fine restaurant called the "the spoon" on the banks of Danube I chatted with my Hungarian colleagues about Hungarian economy and Budapest. Every one agreed that joining Euro area is at least 3-4 years away. The austerity measures the government is trying to introduce to bring the budget deficit below 4% of GDP is not going down well with the public. Inflation was 7.8% in 2007 and expected to be curtailed only by end of 2008 as spending cuts wane. Hungarians have the heaviest tax burden in the regions. Employers pay 30% social security on top of taxes paid by employees. High tax regime and changing tax laws haven't helped local businesses.
The views from the restaurant were spectacular and Budapest seemed beautiful in the night. The government and people have a tough task ahead to turn around this beautiful city.
