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The stability pact works, Mr Almunia said (Photo: European Commission)

Post-election Hungary faces fiscal problems

Hungary recorded the largest government deficit in the EU last year, according to official statistics published by Eurostat on Monday (24 April),

Hungary's deficit in 2005 was 6.1 percent of GDP, putting public finance high on the agenda for newly re-elected prime minister Ferenc Gyurcsany.

The bloc's stability pact, the rules underpinning the euro, say that member states may not have a deficit of more than 3 percent of GDP.

Six other countries also broke the stability rule...

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The stability pact works, Mr Almunia said (Photo: European Commission)

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