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EU reproof, Ft 100 billion reserve due to budget deficit

The European Commission urged Hungary to reduce its budget deficit in order to meet the 2008 target, wire service Bloomberg reported, quoting a news report by Reuters. According to the commission, Hungary should take further budgetary measures to reduce this year?s budget gap by 0.5 percentage points. These steps are needed to push the deficit below the 3% mark as required by the Growth and Stability Pact and Euro zone convergence criteria.
The European Commission has accepted the amendments to the 2005 budget providing for a Ft 100 billion reserve to be set aside by the Finance Ministry that would serve as an emergency fund to offset risks inherent in the budget, Finance Minister Tibor Draskovics said in a press conference today. Draskovics denied news that the EU proposed a 0.5 percentage point reduction in its budget deficit. In Draskpvics?s opinion, the EU will approve Hungary?s efforts to maintain the balance of public financing in March.