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Hungary to draft updated convergence plan

The Hungarian government will finalize the update of the country's euro convergence plan after discussing it in the tripartite National Interest-Coordination Council (OET) on Friday. The update will be sent to Brussels before the end of this week, Finance Minister János Veres told the press after the cabinet meeting.

The cabinet discussed and approved the updated convergence program at its meeting on Wednesday.

Hungary will cut its fiscal deficit faster under the updated plan than under earlier plans, in the light of the recent global financial crisis, Veres said.

The ESA95 general government deficit will be cut to 3.4% of GDP this year, and will drop to 2.6% of GDP next year, in line with the 2009 budget act approved on Monday. The deficit ratio is seen to drop to 2.5% in 2010 and to 2.2% in 2011, the Finance Minister said.

Including correction for the costs of the pension reform, the deficit is expected to drop below 3% already this year, Veres noted. (MTI – Econews)