Distinguished Chair, Ladies and Gentlemen,

First of all let me thank the Government of Spain and the organisers for the excellent arrangements, and for creating such a pleasant environment and venue for discussing the issues of ageing. In Hungary, we are preparing for the second round of general elections, which explains why neither the President of the Republic, nor the Prime Minister can attend the conference.

The Government of Hungary welcomes and fully agrees with the requirements summarised in 10 points in the United Nations Declaration on an International Strategy for Action on Ageing in 2002, which was adopted at the Second World Assembly on Ageing. We believe that the preparatory work of expert committees has resulted in an international strategy which has been formulated on the basis of the core principles adopted by the First World Assembly on Ageing in 1982, and which outlines realistic challenges arising from population ageing in the 21st century, as well as drawing attention to opportunities to integrate ageing in economic and social programmes.

In line with Point 7 of the Declaration, I wish to point out that while national policies addressing ageing may differ in specific measures and approaches as local conditions and traditions vary, they are certainly identical in their objective to make elderly people feel they are equal and valuable members of society and to ensure they are respected and recognised as such by younger generations. That is also the overarching aim of our national policy on ageing.

And now let me briefly outline local conditions in Hungary and the most essential elements of our programmes and endeavours.
 

The demographic situation in Hungary

Currently, 14.6% of Hungary's population is over 65 years of age. This ratio is 11.4% and 17.6% among the male and female population, respectively. In 50 years, unless we can reverse this trend, 26% of our population will be over 65 years of age. Compared to the rest of Europe, these figures indicate a medium trend of population ageing. Hungary's most pressing problem is that there has been a continued decrease in births over the past two decades, and their number is now down to nearly 50%. The proportion of the elderly to the economically active population has developed unfavourably. We try to reverse this tendency by an active family policy agenda which has been designed both to increase the number of births and improve our mortality figures, especially in the case of working-age men. The fall in births was halted in 2000, which we consider as a success of our policy.
 

Principles of family policy:

The backbone of the Hungarian Government's social policy is a wide range of diverse schemes that are adjusted to the needs of every generation. What we seek to achieve is to contribute to child-rearing by maximising the amount of income remaining with families. In order to help raise children, mothers, fathers and grandparents can choose to stay at home on subsidised leave for 3 years. Time spent on child-rearing is a qualifying period for pension entitlement for which pension is calculated on the basis of previous average earnings. Special emphasis is laid on recognising and supporting a multi-generational family model as a value. We are convinced that respect for the elderly, their recognition, dignity, activity and self-fulfillment at the social level can be incorporated into macro-level policies effectively if these values take root in families themselves.
 

Old age benefits

In our programmes particular importance is attached gradually to meeting the special needs of senior citizens. Our basic aim is to promote home care for those who need it, but we also provide several billion forints in subsidy for building and operating old people's homes and nursing homes. Apart from specially trained personnel, home care and other social services for the elderly are also provided by a variety of voluntary organisations as well as NGO's and charities whose many active members include a number of elderly people.
We wish to extend social services to an increasing number of elderly people living on their own or suffering from illnesses. From 2002, every municipality will be obliged to operate a signalling system which has proved very efficient in Hungary. We lay emphasis on the diversity of services in order to meet differing needs.
 

Linkages with NGO's

In pursuing its ageing policy, the Government has been, especially in recent years, relying on a Council on Ageing, which consists of representatives of pensioners' organisations and is a consultative and advisory body drafting proposals for the Minister of Social and Family Affairs. NGO's are becoming increasingly active in shaping local policies and representing the interests of the elderly.
 
 

Health care for the elderly

Special mention must be made of the Hungarian Government's Public Health Programme, which attaches special attention to, and includes as a separate chapter, the elderly population. The Minister of Health has appointed as Ministerial Commissioner a renowned medical professor, also co-chair of the Council on Ageing, with multiple qualifications including, as a matter of course, geriatrics and gerontology, to deal with health services for the elderly. We believe that a basic pillar of the independence and autonomy of the elderly, apart from their material well-being, is health, healing and rehabilitation. Hungary's health policy puts a primary focus on prevention but, naturally, medical treatment and nursing adjusted to the health status of the elderly are equally important. About two thirds of the health budget are expended on the over-60s. The Government of Hungary also pays special attention to increased geriatrics and gerontology studies. Apart from professional upgrading for doctors and research work, disseminating this knowledge to the wider population and spreading lifestyle programmes are also effective methods that are subsidised as priorities by the Government.

Pensions

Our priorities include safeguarding elderly people's independence and increasing their active participation in the economy and society. An important aspect of that effort is a guarantee of financial security for as many elderly people as possible. 98% of the elderly population in Hungary receive an old age pension, amounting to 56-60% of the average pay. Unfortunately, because of the inherited economic situation and the state of the pension system, 25-30% of pensioners are paid very low amounts of pension. The provision of supplementary social benefits (including housing allowance and subsidised drugs), which is a responsibility of local municipalities, is still hindered by many difficulties. The pension reform launched in 1998 has produced a mixed pension scheme, whereby a supplementary fully funded system has been created for the young. The state pension scheme, which profoundly impacts on the status of today's pensioners, is currently undergoing reform. We are planning to introduce a new pension system in 2003 which will no longer mix the principles of insurance and social distribution. The contribution-based pension system will be supplemented by a social benefit system specially designed and reinforced for those in need.
 

Active old age

Hungary has "hidden resources" for increasing elderly people's activity since as a byproduct of political changes and economic restructuring many people have escaped into early retirement or the then highly liberal disability pension scheme. Against a background of sustained economic development, which has already started, the future is promising in terms of employment opportunities. In order to maximise the employment of elderly people, we offer special incentives for them including tax breaks we have made this year, but we are also considering incentives for employers. Currently, 15% of old-age pensioners are in employment. Parliament has adopted an Act on Adult Training, which also offers the elderly access to mental refreshment and information by providing lifestyle training courses. A pensioners' academy and other forms of education have existed before and been a valuable addition to developing the skills and abilities of elderly people.
Apart from that, our existing range of cultural, recreational and travel allowances is offering increased opportunities for the elderly. Reintegration programmes are particularly encouraged.
 

Security in old age

In 2002, we wish to integrate into an institutional system our programmes which have been designed to secure elderly people's rights and their ability to use them, along with maximising reliance on their accumulated knowledge, experience and insight. In doing so, we will involve, and exploit the activities of, NGO's, charities and voluntary organisations.

Generally speaking, in its policy addressing ageing, the Hungarian Government takes a course in compliance with the United Nations International Strategy for Action, while, naturally, it takes into account national characteristics, traditions and not least economic opportunities, along with the requirement of acceleration and diversity and the need for an integrated multi-sectoral approach. [Our motto: opportunities for the elderly, opportunities for families, and opportunities for society (that is: equal opportunities).]