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EC recommends improving business environment

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Hungary's growth potential is weak in relation to a worsening business environment, which is to a large extent driven by the lack of predictability and distortive effects of government policies, the European Commission said on Wednesday in its Country Specific Recommendations, published at the same time as it recommended ending the excessive deficit procedure against the country. Hungary faces serious challenges in the short- to medium term, related to the business and legal environment and economic growth potential, which could also undermine the success of fiscal consolidation, the Commission said. The Commission has issued seven country specific recommendations to Hungary, including taxation, budgetary and social issues.

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