The transition to and the stabilisation of the market economy, that has been achieved over the past decade or so in Hungary , can be divided into three phases (graphs to illustrate):

• Economic transformation – which was accompanied by rapid worsening of the employment situation
• Economic regeneration – which brought the first slight improvements
• Economic growth – which has lead to employment growth and increasing competitiveness.

Although in these phases the challenges have been of different nature, and thus required various policy responses and actions, social partners have made valuable contribution all over the years. Some examples will be presented in the short contribution to illustrate how Hungarian social partners have participated in shaping and implementing employment policies and practice.

Phase I. : Economic transformation
This was the longest and most painful phase in the recent development history of Hungary . Over these years, tripartite co-operation and social dialogue proved to be suitable instruments to manage the profound economic changes successfully, while ensuring the unexpectedly peaceful return to market rules. Social partners were especially active at national level in developing public policies – and at enterprise level when managing restructuring.
The impact of social partners' contribution was highly valuable in three areas:
Transformation plans and strategies could become of better quality and more realistic
Transformation process could be carried on in a more balanced way
Public support for (or at least the acceptance of) changes could be ensured
Experience also showed that the absence of consultation and social dialogue (especially at the enterprise level) could lead to serious social tensions; exacerbating the negative implications of economic restructuring.

Phase II.: Economic regeneration
How, in this phase of the development, enterprises are in the centre, since growth and employment depend essentially on their ability to remain competitive, profitable and create wealth. Their success derives, of course, from many factors. But one of them is certainly sound social dialogue.
The expectations are high as regards social partners' contribution, including the following:

• In order to pursue a job-creation policy social partners are encouraged:
• to follow a responsible wage policy and wage bargaining (to moderate wage rises, and if needed, to negotiate about voluntary wage restriction)
• to assist workers in upgrading and/or adjusting their skills to the changing requirements, to foster life long learning

• In order to increase competitiveness social partners are expected:
• to ensure that labour costs are in line with labour productivity
• to find the right balance between the flexibility companies need, and security for workers

to agree on innovative solutions as regards the modernization of working life (telework, work through temporary agencies, working time arrangements, etc.)

Concluding remarks
Hungary has recovered relatively quickly from the shift to market economy. It has also been able to achieve economic and employment growth despite the current economic slowdown in Europe . All these achievements would not have been possible without the contribution of social partners at national, regional and local level. They have shared much of the efforts and heavy responsibilities with the Hungarian government as well as with other public institutions. What Hungary has achieved is a common result.
Three factors have been a key to success:

• the existence of responsible, autonomous social partners, who were ready to play a constructive role
• a general consensus between the government and social partners (and also the political parties) on the overarching goals: to transform the economy gradually into a free market economy
• subsequent governments which all understood, of course to somewhat different ways, that social partners were fundamental to Hungary 's efforts to achieve improved economic and social performance.

It is firmly believed that social partners will continue to contribute successfully to further growth, competitiveness and social well being in Hungary .