BUDAPEST (AFX) - Hungary's newly re-elected socialist prime minister, Ferenc Gyurcsany, announced major overhauls Saturday in the public and health sectors, including massive layoffs, in an effort to get the country into the euro zone by 2010.
Gyurcsany, who had previously announced reforms but until now had not provided any specifics about his plans, said the bloated state administration sector, which ran up a public deficit of 6.1 pct of GDP last year, the highest in the European Union, would be the first area to be overhauled.
In public administration, 'there are areas where until now 26 (people) worked and I think seven will suffice,' Gyurcsany told a Socialist party meeting in Budapest.
'There are places where 160 worked and I think 50 would be enough,' he added.
Hungary, which has a population of 10 mln, counts some 100,000 civil servants.
'We must simultaneously balance the reform of the state administration -- a deep transformation -- (work on) development, a policy of equilibrium in a growing economy and (guarantee) a slightly growing income' for the people, Gyurcsany said.
The prime minister, who was re-elected on April 23, is under pressure to quickly tackle the high deficit, which market analysts have said threatens economic stability and the country's planned adoption of the euro in 2010.
According to the so-called Maastricht criteria, Hungary needs to bring the deficit, which economists expect will surpass 8.0 pct of GDP this year, under 3.0 pct of GDP by 2008, two years before its planned entry into the eurozone.
'The objective continues to be to meet the Maastricht criteria by 2008,' Gyurcsany said.
He added the reforms would also involve transforming the wasteful state-run healthcare sector as well as education.
He said he would present his detailed reform programme to parliament on May 30, prior to taking the oath of office on June 14. newsdesk@afxnews.com afp/jlw COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited