Bokros package

As Bokros package ( Hungarian: Bokros csomag; named after the then Minister of Economic Affairs Lajos Bokros ) is a series of austerity measures known, adopted the Hungarian cabinet Horn on 12 March 1995. The catalog restrictive fiscal policies had the goal of preventing the threat of national bankruptcy. First, a gradual devaluation of the forint Mechanismum (called crawling peg ) to cope with the threatening deficit in the trade balance in March 1995 introduced. The benefits were restricted to September 1995, tuition fees have been introduced, nominal wages in the public sector should now only 6-15 % increase, which meant a significant reduction in the real wage under the terms of the inflation rate of 20%. In addition to savings, the privatization process has been accelerated.

The Bokros package caused widespread criticism. In the population the package was deeply unpopular. The right or right-wing opposition denounced the measures as catastrophic, and there were discontent and criticism from the left wing of MSZP and its trade union wing. Three ministers resigned. Nevertheless, the Prime Minister Horn could bring the majority of socialists behind.

Although the Bokros package had a significant reduction in real income result, experienced the Hungarian economy since 1997 a new impetus: 1997 to 2000 grew at an annual rate of 4.2 % to 5.2 %.