By 2006, Hungary has experienced more than 15 years, the transition from a centrally planned to a free market. The reform process has been associated with several different phases. The initial "leap to the market", with its wide privatization, including the dramatic deregulation with "guillotine" procedure. More subtle process of "regulatory impact assessment» (RIA), and then the period. Newly empowered competition office sought to strengthen the degree of competition within the market is dominated by one company or a small group of firms. Goal of EU accession has been a consistent driver of reform back in 1991, as the model The EU is mandatory for EU member states. During these years was stormy, and the transition is not yet complete. Hungary in 2006 faced with the problem of the budget deficit, which was 9.5 percent of GDP, and the response to the higher corporate tax rate from 16 percent to 20 percent, as an attempt to close the budget deficit. Nevertheless, Hungary was in fierce competition with Poland, the Czech Republic and Romania in order to attract opportunities. Tax rates are an important element in this competition, but so was the regulatory barriers and distortions, which were still in economy. How to create a fast-growing economy was at the forefront of public policy debate. 2006 Financial Times article discussed this dilemma. "Hide
by David W. Conklin, Daniel Cadieux Source: Richard Ivey School of Business Foundation 17 pages. Published: 22 August 2006. Prod. #: 906M81-PDF-ENG
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