ADVERTISEMENT

Orbán says Brussels forcing half of fiscal improvement plan on Hungary

History

Half of the government's recently unveiled HUF 400 billion fiscal improvement package would not be necessary if the European Union were not forcing it on Hungary, Prime Minister Viktor Orbán said in an interview on public radio on Friday.

Orbán explained that the Commission did not think next year' fiscal deficit would be under the 3pc-of-GDP threshold, and if the government did not make changes to the budget, the EU would take away several hundred billion forints of development funding from the country. He said he thought this was not a just move, but added that the budget had to be adjusted if Hungary was not to lose funding.
Hungary is doing what Brussels expects of the country, Orbán said. But he added that the state of the Hungarian economy would be better next year than is thought in the EU and suggested this could allow the fiscal improvement package to be tweaked.
"It remains to be seen which things Brussels rules out now or wants us to rule out that we will actually act on. But we do not have to report this now, only in the first half of the year," he said.
Orbán cited as an example of such a measure a plan to postpone an increase in teachers' pay until January 2014. He said he saw a chance for numbers in the first half to allow the pay rise in September 2013.
Hungary is not far from reaching a favourable agreement with the International Monetary Fund, Orbán said. After the IMF general meeting in Tokyo winds up, new developments are expected in the matter, he added.
Hungary is seeking precautionary financial assistance from the IMF and the EU. Asked whether the government continued to intend to use money from an IMF agreement only to pay off state debt, Orbán responded in the affirmative.
Orbán said the government will announce a new economic plan in 2013 that will be targeted at the lower-middle class. People whose earnings are between the minimum wage and HUF 220,000 a month have still not had the chance to get out of their present situation, he added.

ADVERTISEMENT

Consumer, business confidence reach 2-year high - GKI Analysis

Consumer, business confidence reach 2-year high - GKI

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

Budapest airport shuttle bus service expanded City

Budapest airport shuttle bus service expanded

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.