Hungary's present financial position is stable and predictable, and provides a good basis for the government to continue the restructuring and to kickstart economic growth, Prime Minister Viktor Orban said. The New Szechenyi Plan in Hungarian ► Downland here  MAGYAR VÁLTOZAT ► LETÖLTÉS ITT!

Speaking about the prospects of future strong economic cooperation within the EU, Mr Orban said Hungary's financing needs could be met without the IMF. Adressing meeting presenting the concept for the New Szechenyi Plan - named after the denoted Hungarian statesman Istvan Szechenyi of the 19th century - in Budapest to enterpreneurs, Mr Orban said "we have averted the danger of a collapse of the budget through the action plan". He said the country is in a relatively stable position, therefore there is a possibility for an economic reconstruction. Prime Minister Viktor Orban said the economy must be rebuilt because it has been destroyed, and the Szechenyi plan is a programme for this reconstruction. The prime minister said it shows the stability of the economic situation that the suspension of the talks with the IMF and the subsequent downgrades only resulted in temporary disturbances. Following these disturbances, however, both the forint rate and "bond issue and bond sale capacities will return to the level where the country's operation can be regarded as stable", he said. There could be further downgrades in the pipeline, but the disturbances are only temporary, Mr Orban said, adding that it is worth to continue the current policy. The recently enacted banking tax is big and painful but is justified and necessary considering the burden the country had to bear. The prime minister said that Hungary will keep to the targeted 3.8pc of GDP deficit. "We will have to create the most efficient (state) administration of Europe", including the most transparent budget of the continent, he said. The government's aim with the New Szechenyi Plan is to forward national and EU funding to micro, small and medium-sized Hungarian businesses quickly, efficiently and in a coordinated way, National Development Minister Tamas Fellegi said. The intention is to provide SMEs with HUF 1,000bn in combined EU and government funding by 2013, the end of the current EU budget period. Untied funds still at disposal reach HUF 1,828.8bn of the HUF total 7,870bn EU funding available for Hungary in the 2007-2013 period, Mr Fellegi said at a meeting, presenting the outlines of the New Szechenyi Plan. Ongoing tenders are worth HUF 1,480.2bn and projects launched with commitments are worth HUF 4,126.5bn. Currently, the value of the funds that could be immediately mobilised for small and medium-sized businesses is HUF 155bn, Mr Fellegi said. He noted, however, that the government has already discussed a proposal to withdraw or restructure project funding worth a combined HUF 477bn based on a recently completed review of around 700 large projects. Based on the review, project funding worth HUF 41bn will be withdrawn, thereby released, Mr Fellegi said. The remainder of the reviewed projects can be restructured toward the seven priority fields set in the Szechenyi plan and with a shift towards the participation of SMEs. A note by the ministry added that it had proposed to witdraw only those projects where no progress has been made, or chances for completion are slim or which clearly contradict with the government's goals. Sustainable projects creating new jobs will go on undisturbed. The national development minister said that the new Szechenyi plan will require the establishment of a new tender system, new institutions for the planning and distribution of the development funds as well as a new evaluation system. They plan to simplify the tender procedure and make the system more transparent, the minister said. In a move to cut redtape and improve focus, they will also cut the number of tenders to 100-200 from around thousand under the New Hungary Development Plan run by the previous government.