Hungary reform plan a right step - details awaited

The European Commission sees clear signs in the measures outlined in Hungary’s reform package that the country is on the right track towards fiscal consolidation, European Commissioner for Economic and Monetary Affairs Olli Rehn said in Brussels.

Rehn was speaking at a joint press conference with Hungarian National Economy Minister György Matolcsy and Internal Market and Services Commissioner Michel Barnier after a meeting of EU finance ministers.

Rehn reiterated that the Commission would like to hear more details about Hungary’s reform plans as soon as possible, especially about structural measures that would affect the budget deficit in the coming years.

The commissioner reminded that Hungary’s budget deficit should be cut to below 3% of GDP this year and preferably via structural measures that ensure sustainability. He noted that until the announcement of the Széll Kálmán Plan in early March it seemed the deficit reduction would be achieved mostly by temporary measures.

According to lthe Hungarian news agency MTI, Rehn also called the HUF 250 billion stability reserve an important tool. At the same time, he emphasised it is too early to consider the question whether the EU should take new steps with regard to the EDP against Hungary. He expressed his hope that the Commission will learn further details about the planned measures before Hungary submits its updated Convergence Programme to Brussels.