Sunday, March 16, 2008

Healthcare reform in Hungary facing serious challenges - Feature

Budapest - Hungary's plans to overhaul its ailing healthcare system by allowing private capital into the health insurance market are on the rocks as political pressure mounts following a referendum in which voters rejected other welfare-state cuts. Voters turned out in droves on Sunday to reject fees for medical treatment and higher education - a result seen as a stinging defeat for the government and its economic reforms.

Analysts say the rejection of the fees - which were part of efforts to reduce the budget deficit and, ultimately, get Hungary ready to adopt the euro - dents the government's ability to continue with reforms.

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