The economist Peter Mihalyi has called for "drastic, shocking" reforms in his new book. Why is the Hungarian Economy Poorly? calls for reform of the family support system and discusses the problems facing very small companies.
hvg.hu: In Hungary, it's not just the poor who feel they don't earn enough. You call this the "myth of underpayment".
P.M.: Everyone thinks they aren't paid enough. In a country that is catching up this will always be a problem: why doesn't a Hungarian roadsweeper earn as much as a London roadsweeper, since they do the same work. Because London is in a richer country.
hvg.hu: We've tried to copy various features of western healthcare systems for our reforms - but parliament has just abandoned the law on health insurance funds. You worked on designing the Free Democrats' healthcare proposals. Were you disappointed?
P.M.: The government gave in - and that was a grave mistake. Of course, after so many bad decisions they had no more freedom of manoeuvre.
hvg.hu: You mean the pace of the reforms was badly chosen? You've called the social debate a "mad reform ritual", saying the reforms were conducted too slowly.
P.M.: We inherited the institution of the social debate from socialism, when it was part of the law on legislative procedure. But that passage has been withdrawn. In a democracy, laws are discussed in Parliament. It was a mistake to debate the reforms in different forums - every organisation, every person had a different view. Who cares what the railwaymen's union said at a meeting nobody attended? Parliament should debate the issues - every other forum is irrelevant.
hvg.hu: But maybe those forums have a role in laying the ground for the decisions. What are you expecting to happen during the rest of this government's term in office?
P.M.: Nothing until the autumn referendum. That will probably be a wash-out, creating a new psychological situation, when we can think things over anew.
hvg.hu: Another look at pensioners and pensions?
P.M.: The mass of the retired includes many still earning an income, often at the same place of work from which they retired. That's unique in the world. This phenomenon is widespread, from constitutional court judges to police officers. The state is responsible for this, because they allowed it to happen out of short-term political interest.


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