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Socialists slam government’s ‘flawed’ pension policy

Hungary's economy "is in big trouble", according to the opposition Socialists, who slammed the government's "flawed" pensions policy.

The budget is too strained for the payment of a pension premium, Lajos Korozs, the party’s deputy leader, told a press briefing on Friday, noting the government’s rule that the economy must grow by at least 3.5 percent before the extra pension payment could be made.

He also blamed “bad” economic and financial policies, including interest and exchange-rate policies, for the plight of pensions, saying that “even the finance minister has admitted that dedicated measures are needed to protect pensions”, and the Socialist politician called for a pension-protection fund.

Many retirees, he added, were living in poverty, while almost 400,000 were still having to maintain their job as they were unable to support themselves from their pension alone.

Korozs said pensions had been falling behind wages “drastically”, and the government was unwilling to close the gap, “even in the case of low pensions”.

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