Mr Ambassador, Ladies and Gentlemen,

Thank you for the opportunity to open today’s meeting, which I think is of great significance with regard to the reform process currently under way in Hungary. I believe that we should not try and find new untrodden paths when there are ones already used by others. Also, it is important to consider the advice given by the representatives of countries whose investments are essential for Hungary.

I’m present here today performing two roles at the same time. Since March 31^st, I have been the president of the Hungarian liberal party, while I continue to work as the minister of economy.

In both my roles I consider it to be my greatest responsibility to make the functioning of the state more transparent and efficient. The reform process initiated last year can not be successful unless we bear in mind these objectives.

During the previous term of the government, we took several measures to increase the transparency of the public sphere. As an example, I would like to mention one of the measures taken by a ministry which has by now been integrated into the Ministry of Economy. The main objective of the Act on the Freedom of Information by Electronic Means was to create legislative environment towards a more transparent functioning of the state. The Act creates the legal basis for the accessibility of information in the public sphere.

Among the data of public interest which are to be published under the Act are the information concerning the rules of public service procedures, the financial management of state organizations and the descriptions and outcomes of tenders published by state organs and authorities. Ministries and local governments are to publish the drafts of legal acts and make it possible for citizens to express their opinion. Also, it is extremely important for legal security to publish the anonymous version of court decisions. The same Act prescribes the creation of a Register of Operative Legislation, which provides citizens with free access to all operative legislation. The Ministry of Economy is responsible for the creation of a search system to be used with all the data published under the Act, the development of which is currently under way.

However, a number of organizations obliged to publish data of public interest are currently not fulfilling this obligation.

The Ministry can support these organizations by providing information, while we are reconsidering the existent sanction procedures.

The Ministry of Economy has recently developed its institutional strategy, several aspects of which involve the question of transparency. Some of the most important of these aspects are as follows.

For the competitiveness of Hungary it is essential to create a predictable and transparent enterpreneurial environment by making taxation and registration procedures more effective and easier to follow. These changes will be made using the outcome of an opinion poll already carried out among those concerned.

I also consider it highly important to decrease the administrational burden on Hungarian enterprises by simplifying the legal procedures concerning the setting up of new enterprises in close cooperation with the Ministry of Justice and Law Enforcement. Also, we need to widen the scope of e-government, in cooperation with the Centre for E-Government of the Office of the Prime Minister and the National Development Agency. Another priority is to develop specific suggestions concerning the simplification of tender procedures for enterprises.

It is our responsipility to develop a recommendation for the simplification of tax regulations in close cooperation with the Ministry of Finance.

Payments made by the state must be reliable in terms of meeting deadlines. In order to achieve this, an action plan has to be developed in cooperation with the Ministry of Justice and Law Enforcement and the Ministry of Finance.

We must create the appropriate legal environment for electronic public procurement and electronic auctions. This also calls for an action plan specifying the measures to be taken.

In order to create fair and transparent markets, we need to build stronger partnerships with the institutions responsible for the regulation of competition (Hungarian Competition Authority, National Radio and Television Commission). We consider self-regulation, peer-regulation and alternative mediation techniques of utmost importance, as well as the introduction of ’civil sanctions’ for those breaking the rules of competition. This also calls for strengthening the independence of regulatory bodies and improving the efficiency of the controlling mechanisms, while taking stronger measures against illegal and semi-legal economy.

We also wish to increase the efficiency of the state by making more efficient the Ministry itself and its institutions. In 2007 we wish to carry out a comprehensive overview of the tasks and responsibilities of the Ministry and all its institutions, with the aim of focussing ministerial activities and delegating operative tasks to relevant background institutions. Also, we are planning to outsource some of the Ministry’s activities to for-profit actors.

To make our work more accessible for NGO-s and citizens, we wish to improve the two-way communication with the public, mainly through our customer service and website.

The Party which I’m leading is the only party in the Hungarian parliament that stands up for the idea of a small but strong state.

In the next three years I’m planning to take initiative to further the civic control and the efficiency of the state even in fields which do not belong to the Ministry of Economy, because it is in tune with liberal principles.

In the field of health care we consider it our aim to increase the transparency of financing and the healtcare contribution system and to decrease corruption.

The modification of the Hungarian Civil Code is under way. We wish to ensure that transparency is one of the priorities during this process.

The old age pension system needs to be reconsidered. Our view in this question is that the interest of the citizens is best served by a system of individual accounts where their money can be retraced throughout the system.

Apart from decreasing the administrative burdens on the actors of the economy, deregulation has to involve the entire legal system. The first steps have already been taken, but as the president of the liberal party, I wish to assist this process.

The rethinking of the responsibilities of the state is part of the reform process. In tune with our liberal principles, we need to ensure that this involves not only a regrouping of tasks, but the rethinking of the role of the state as such. This will probably increase the transparency of the state as well.

For the liberal party the major issue in terms of corruption is the financing of political parties. Corruption starts with the state and ends with the political parties. The political parties' financial needs beyond the official support they receive represent a significant burden for the taxpayer. International analysts denounce the situation in Hungary year after year.

The Hungarian democracy is now probably mature enough to be able to take the relevant measures.

The liberal party has just come to an agreement with its coalition partner concerning the need to regulate the financing of political parties and the use of public expenditures. This agreement includes that the 2010 elections will already be held according to the new rules of party financing. These will state that parties are not allowed to receive financial support from companies and enterprises, only from natural persons. The group of donors and the parties' expenditure are to be made fully accessible for the general public and are to be controlled by the State Audit Office. We have also agreed to shorten the election campaign period.

However, we need to make the public understand that these measures can only be feasible if the parties receive more state support. Apart from this, the agreement calls for new legislation for the regulation of public expenditures, taking into consideration the recently published recommendations of State Audit Office.