Thursday

28th Mar 2024

Brussels endorses Hungary's deficit cut plans

The European Commission on Tuesday (26 September) backed Hungary's programme of austerity measures to try and get its economy back on track, but said that it wants "rigorous implementation" of the plans.

"After repeatedly warning about large budgetary slippages, the commission takes note of the commitment by the Hungarian government to bring its public finances back on a sound footing," EU monetary affairs commissioner Joaquin Almunia said.

Read and decide

Join EUobserver today

Get the EU news that really matters

Instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

  • Hungary must get its budget deficit in order by 2009, says the European Commission (Photo: European Commission Audiovisual Library)

"We will continue to closely monitor the situation to verify that the announced measures are fully implemented and that the government decisively carries out its agenda for structural reform and expenditure control," he added.

But despite the tough words, Brussels extended a deadline by one year for Budapest to bring its finances in order.

Hungary now has until 2009 to bring its budget deficit down from 10.1 per cent of GDP to the three percent threshold allowed under EU rules.

The Brussels endorsement comes as prime minister Ferenc Gyurcsany struggles to keep his government afloat, after provoking riots earlier this month when he admitted that he had lied about the state of the country's finances in order to get re-elected.

Polish media report just 2,000 people came out on the streets of Budapest on Tuesday night to call for his resignation, compared to the 20,000 protestors at the height of the demonstrations a few days ago.

But opposition activists continue to hand out white ribbons in an attempt to keep the so-called "white revolution" going, with local elections this weekend set to test the country's confidence in the ruling elite.

"Swiftly dial back" interest rates, ECB told

Italian central banker Piero Cipollone in his first monetary policy speech since joining the ECB's board in November, said that the bank should be ready to "swiftly dial back our restrictive monetary policy stance."

Latest News

  1. "Swiftly dial back" interest rates, ECB told
  2. Moscow's terror attack, security and Gaza
  3. Why UK-EU defence and security deal may be difficult
  4. EU unveils plan to create a European cross-border degree
  5. How migrants risk becoming drug addicts along Balkan route
  6. 2024: A Space Odyssey — why the galaxy needs regulating
  7. Syrian mayor in Germany speaks out against AfD
  8. Asian workers pay price for EU ship recycling

Stakeholders' Highlights

  1. Nordic Council of MinistersJoin the Nordic Food Systems Takeover at COP28
  2. Nordic Council of MinistersHow women and men are affected differently by climate policy
  3. Nordic Council of MinistersArtist Jessie Kleemann at Nordic pavilion during UN climate summit COP28
  4. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  5. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  6. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?

Join EUobserver

EU news that matters

Join us